Qantas Bans All Staff (Including CEO) From New Airbus A350 First Class

Qantas Bans All Staff (Including CEO) From New Airbus A350 First Class

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The next year should be pretty exciting for Qantas, as the airline will start taking delivery of Airbus A350-1000s, which will be used for the world’s longest flights, and will feature an all-new passenger experience. Ahead of this launch, it’s interesting who won’t be invited into first class on these planes (thanks to Live and Let’s Fly for flagging this)…

Qantas won’t offer executives A350 first class seats

While the airline industry often doesn’t pay that well, one nice perk is receiving travel privileges. As you’d expect, the exact privileges (whether you get positive space travel and which cabin you can travel in) vary based on your role, how long you’ve been at the company, etc.

Currently, executives and board members (both current and former) receive positive space seats in the carrier’s first and business class, both domestically and internationally. This isn’t just for the person directly associated with the company, but also, for their family. As you’d expect, that’s a major perk, since it means you can fly the carrier’s Airbus A380 first class as much as your heart desires.

This is where it gets interesting. As reported by Rampart, Qantas International CEO Cam Wallace recently wrote to the company’s current and former directors and executives, to inform them that they won’t be able to use their positive space first class flying privileges on the carrier’s A350s, which will operate the “Project Sunrise” nonstop flights from Sydney (SYD) and Melbourne (MEL) to New York (JFK) and London (LHR).

This same rule will apply across the board for this cabin, including for current Qantas Group CEO Vanessa Hudson. As before, they’ll be able to use their privileges for the carrier’s A380 first class, which has 14 seats. Qantas’ new A350 first class cabin, meanwhile, will have just six seats, and it will be an all-new design, with a separate seat and bed.

Qantas executives won’t get seats in the new A350 first class

This seems like a surprisingly sensible policy

All too often, airline executives and board members simply look out for one another, and take a bit of a “country club” approach to running things. So it’s actually oddly refreshing to see something like this at Qantas, which has been run as a particularly “cozy” operation, in that regard.

What’s the logic for this policy change? For one, making the economics on these ultra long haul flights work will be incredibly challenging. We’re talking about 20+ hour flights that are on very premium configured aircraft, so the airline needs to be able to fill seats at high fares in order to make money flying these planes.

In particular, selling first and business class seats at high fares will be a key aspect to making this work. Suffice it to say that those with positive space travel privileges filling up a majority of the first class cabin with family will make it hard to actually turn a profit on these flights.

Qantas will have to command high fares to make economics work

That opportunity cost doesn’t quite exist in the same way on the A380, where it’s rare for Qantas to sell all 14 seats at anywhere close to high fares (which isn’t to say the cabins don’t get filled up somehow, but not with full fare first class passengers).

There’s also a certain satisfaction to knowing that former Qantas Group CEO Alan Joyce won’t be able to fly in the carrier’s A350 first class as part of his privileges, given the damage he did to the airline.

Qantas’ A380 first class has 14 seats, so it’s a different story

Bottom line

Qantas has advised current and former executives and board members that the airline won’t be extending travel perks to the carrier’s new A350 first class. These special A350s will be used for the carrier’s longest routes, from Melbourne and Sydney to London and New York.

Given the small first class cabin, plus the need to actually sell seats at high fares to make economics work, this seems like a sensible development that’s in the company’s best interest. I’m sure some people eligible for travel privileges won’t be too happy about this, but oh well…

What do you make of this Qantas executive and board member travel policy change?

Conversations (15)
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  1. Dieter Guest

    Given the salaries/wealth of most major airline top executives and board members, they can easily purchase first class tickets... just like other high net worth passengers.

  2. Gva Guest

    Reserved for politicians.

  3. Amt Guest

    Do you know what the word ‘banned’ means?

    Presumably they buy a ticket or indeed use their travel privileges provided seats have gone unsold.

    So indeed under nones definition of the word have they been banned from first class.

    1. yoloswag420 Guest

      Yeah, I think limited is the right word here.

      Qantas is limiting the employee privileges.

  4. 1990 Guest

    Business class is enough for nearly everyone. A bed (lie-flat) and nicer meals on long-haul flights is ample ‘thanks’ for years of service. Honestly, if it’s ‘free,’ economy is great, too. When traveling ‘OPM’ (other peoples’ money), beggars shouldn’t be choosers. Australia yet again does something right (like, actually updating their laws when tragedy happens, rather than just throwing up hands, tots n pears…)

    1. Alan Guest

      OPM beggars...lol.
      So true. The people that whine how upgrade space is disappearing are the ones who dont pay for their seats anyway. Shut up and enjoy what your corporate overlord tells you.

  5. Tim Dunn Diamond

    So, will QF execs and employees be able to fly in first class on a standby basis?

    1. 1990 Guest

      Good questions. What does Delta do for theirs?

    2. Tim Dunn Diamond

      I believe that all US airlines allow their employees to fly standby in any class the airline offers so the notion of any cabin being "off limits" is not a part of the US airline industry.

      Most US airline employee travel is standby to comply w/ IRS regulations that air travel is of no value since it is "given away" at the last minute. I am sure some airlines do have some positive space provisions...

      I believe that all US airlines allow their employees to fly standby in any class the airline offers so the notion of any cabin being "off limits" is not a part of the US airline industry.

      Most US airline employee travel is standby to comply w/ IRS regulations that air travel is of no value since it is "given away" at the last minute. I am sure some airlines do have some positive space provisions but it is taxable under IRS regulations.

      I also think US airline execs can fly any class positive space not just on their airline but on most others.

      as Ben has noted, there are pretty extensive standby agreements between US airlines

  6. Motion to Dismiss Diamond

    Wow. So Project Sunrise will be complete before Lufthansa has Allegris seats rolled out fleet wide. Too funny.

    1. 1990 Guest

      You were onto something with ‘Luftkafka’…

      Whenever they do eventually get it done, I’m still gonna try Allegris (and attempt it around the holidays for that roast goose… @Alan Z!)

  7. JK Guest

    This is definitely a smart move by the airline and I too am glad Alan won't be travelling in it (for free anyway). I imagine even points upgrades will be hard to come by, these nonstops will be quite popular with the wealthy Aussies... and there are a lot of them! :-)

  8. smc422 Guest

    What is ‘positive space first class’?

    1. Ben Schlappig OMAAT

      @ smc422 -- Positive space means that it can be confirmed at booking, subject to availability. That's different than space available travel, which is when you're on standby, and can fill any empty seats on the day of departure.

  9. TravelinWilly Diamond

    Weird. Qantas does something sensible.

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The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.

Dieter Guest

Given the salaries/wealth of most major airline top executives and board members, they can easily purchase first class tickets... just like other high net worth passengers.

0
Gva Guest

Reserved for politicians.

0
Tim Dunn Diamond

I believe that all US airlines allow their employees to fly standby in any class the airline offers so the notion of any cabin being "off limits" is not a part of the US airline industry. Most US airline employee travel is standby to comply w/ IRS regulations that air travel is of no value since it is "given away" at the last minute. I am sure some airlines do have some positive space provisions but it is taxable under IRS regulations. I also think US airline execs can fly any class positive space not just on their airline but on most others. as Ben has noted, there are pretty extensive standby agreements between US airlines

0
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