|
Government travel contest
TRAVELCONSUMERDAILY MONDAY, FEBRUARY 15, 2010
HUNDREDS of thousands of Australian politicians and public servants will learn this month who they'll be ordered to travel with in the next five years as a host of domestic and international airlines and corporate travel management firms vie for the lucrative Government travel contract. Fairfax newspapers are reporting that the awarding of the contract, worth about $A500 million a year, is expected to be announced in the next few weeks. It’s expected that, while Qantas is expected to be awarded at least part of the contract, it is likely to be divided among a range of suppliers to take advantage of cheaper competitive bids in both domestic and international markets. At the same time as the new challenge to its Government contract, Qantas is facing unprecedented competition on routes like Sydney-Los Angeles, where it previously faced opposition only from American’s United Airlines. Virgin Blue’s V Australia and US carrier Delta – the world’s biggest airline – now also fly their own planes on the route. Qantas is expected to lose work on domestic routes to Virgin Blue and, to a lesser extent, Regional Express. Tiger Airways did not put in a tender. Qantas is also vying for the international travel contract with most of the biggest foreign airlines that fly to Australia. Singapore Airlines, Cathay Pacific, Etihad, Emirates, Malaysian Airlines, United Airlines and Air New Zealand have all submitted bids. ''You would be crazy not to be involved,'' Alison Espley, the general manager for Australiasia for United Airlines, told Fairfax. ''It is an exciting opportunity and that is why so many people are interested.'' Corporate travel management firms such as Flight Centre, American Express Business Travel and Carlson Wagonlit Travel are also in the running.
Qantas has held the entire contract for the past decade – one of a number of unchallenged high-priced revenue streams that are being wound back by increasing competition. Qantas has held the entire contract for the past decade – one of a number of unchallenged high-priced revenue streams that are being wound back by increasing competition. Qantas has held the entire contract for the past decade – one of a number of unchallenged high-priced revenue streams that are being wound back by increasing competition. Qantas has held the entire contract for the past decade – one of a number of unchallenged high-priced revenue streams that are being wound back by increasing competition. Comment on this article |
