For those of you digging through wardrobes to find your best black attire and recalling years of memories to pick a few salient points to eulogize Qantas on 24 August when chief executive Alan Joyce announces a re-structure for its international division, you would be better off to stop what you are doing and instead get a bottle of champagne ready--or, more appropriate to Qantas, a bottle of wine from its epiQure club, as the restructure is not a death but a rebirth.

In the past 15 years Qantas International has only achieved returns, however that is calculated, in three years. Fully government-owned carriers could continue on that path, but Qantas is not such an airline. It is an airline that is at a convergence of factors it needs to act on and be realistic about--as do its customers.

The most recent is Virgin Australia's move in to the domestic corporate market, which has generated Qantas high profits. Last year the frequent flyer programme contributed approximately 70% of pre-tax profits, with much of that thanks to the new Woolworths partnership. On the savings front, QFuture delivered in savings $533m--more than the pre-tax profit--but QFuture only runs through next year.

The signs have been present but Qantas actions have not. Those familiar with the situation say the 2008 record profit of $1408m pre-tax fueled complacency across the carrier and only recently has the carrier seen "more courage from management".

That is not the verdict naysayers, who trump Joyce as the cause of all problems, would like to hear. Joyce inherited, not created, the majority of problems. Despite criticism, which led chairman Leigh Clifford to publicly defend Joyce, Joyce is setting out to--finally--be the executive to create a suitable Qantas.

Unprofitable routes that do not improve the bottom line directly or indirectly cannot continue. Joyce has said everything is on the block, which has led to some curious rumours, like the Johannesburg route being cut. Given it was the group's most profitable international route last decade, followed by Papua New Guinea and then Los Angeles, sources say, its axing is unlikely.

Elsewhere routes may be changed, re-directed, or taken over by the much-derided Jetstar. That is a reality of what is financially needed. Boeing 777s will not solve the problem. Network opportunities have been missed, either for passing Etihad over ties with British Airways, or for lack of a partner willing to collaborate, such as with Cathay Pacific.

New opportunities, such as Malaysia Airlines joining oneworld, and strengthening of existing relationships mean the cause is not lost.

It is early days for the Asian, and Chinese in particular, boom. In one example, in 2009 China Southern introduced three direct weekly flights from Melbourne to Guangzhou. Last year it went daily out of Melbourne, and is shortly due to announce a double daily service.

As much of a threat as the Middle Eastern network carriers are and are made out to be, their future is young. Emirates is eying 100 weekly flights to Australia and while it has a sizable A380 fleet in service, the onslaught of deliveries is yet to begin.

Both are challenges and opportunities for Qantas to combat. The recent past may have been lacking, but it has been a short period, unlike the future.

...increases legroom since there is no seat pocket on the bottom.
ATR says the overhead bins have push-button sliding doors and more storage space compared to unspecified other interiors. The bins have been designed for easier maintenance; engineers remove four pins to disassemble the bin and access the sidewalls, according to the manufacturer. It expects 70% of passengers can store a roller bag in the bin.
The passenger service unit has replaced the no smoking indicator with a no electronic device indicator. Note the blue LED lighting. ATR says this improves the sense of space.

Virgin has most recently said the aircraft will be in a single-class configuration, but the ATR 72 can accommodate a two-class configuration, which RAM has selected. This premium economy-style cabin features Armonia's "Prestige" seat, which gives more legroom and additional back and neck support. (ATR also offers a first class seat in a 1-2 configuration with typically 35" of pitch.)
The first row is also the exit row and features extra legroom.

Luggage compartment

At the front is the forward access hatch. ATR also offers a jetway-compatible door with passenger-friendly interior entrance.

The rainbow-coloured props may be eye-catching, but Virgin's will be solid black.

American Airlines has reaffirmed it has no intention to fly its own aircraft to Australia.

The carrier's comments follow a remark to Executive Road Warrior that its forthcoming Boeing 777-300ER aircraft had the range to operate routes like Los Angeles to Sydney. That acknowledgement sent speculation into overdrive that American Airlines was considering serving Australia with its own metal.

"I clearly made it known we have no thoughts about flying to Australia ourselves--and there is no consideration of that currently," American Airlines spokesman Tim Smith tells this page. "Anyone doing otherwise should stand down on their speculation."

Executive Road Warrior commented to Smith that the 777-300ER could fly from LA to Sydney. Smith replied: "Yes, although we did just apply for the Joint Business Agreement with Qantas and they started flying into and out of DFW, which is great for both of us. We may want to put our ducks in Austrialia with the Qantas guys, but [the 777-300ER] certainly could do that route."

Smith subsequently said, "My comment was merely a notation that we will be looking for missions for our Boeing 777-300s when they first arrive in 2012.  And I also said that routes to Latin America, Asia, and Europe are the more likely candidates."

American Airlines had previously stated it had no intention to serve Australia, saying it was short on long-range aircraft and an Australian route posed pilot contractual problems (albeit perhaps exaggerated). The comments were made in the carrier's application to the United States Department of Transportation for a joint business agreement with Qantas.

Reports have taken remarks to the Executive Road Warrior to mean American does not see Qantas as a premium carrier or hold its oneworld partner in high regard. Smith has dispelled such notions.

"I also said that we are quite pleased with our mutual codeshare relationship with our oneworld partner, Qantas.  So pleased, in fact, we have applied to the U.S. Department of Transportation (DOT) for a Joint Business with Qantas on Australian routes that connect to our American routes in the United States."

American Airlines this week disclosed it has purchased two further 777-300ER aircraft, bringing its order to eight. It also ordered approximately 460 737 and Airbus A320 aircraft.

Add Air New Zealand to the list of customers not mincing words with Boeing over delays to its 787 Dreamliner. Chief financial officer Rob McDonald in Sydney yesterday had a concise message over news the carrier's first 787-9, for which it is the launch customer with an order for eight, has been delayed from late 2013/early 2014 to sometime later in 2014.

"It would be an understatement to say we are frustrated and disappointed," McDonald said.

Air NZ is trying to work out when exactly in 2014 it will receive its first 787-9. For now, a spokesman said, 2014 "is as specific as it gets".

The delay is likely in relation to the one-month hold Boeing implemented on the 787 line earlier this month.

The carrier is looking to mitigate the delay by postponing the retirement of aircraft. Future routes--such as to South America and Sao Paulo in particular--may be delayed.

"We're on about plan C," McDonald said.

Read our full article here.