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China Route Again Open To Review:
In a draft decision on August 8, the International Air Services Commission stated that it was not allowing a time extension for new entrant Australia Air to raise the capital required to allow commencement of air services to China. Prior to the IASC draft decision, Australia Air founder Colin Hendrick mooted that he would be reviewing the possibility of launching a Federal Court challenge against the IASC’s decision if it should prove detrimental. The IASC has consistently required Australia Air to have proven reserves of $55m while Hendrick has always considered that $15m would be sufficient. The IASC’s major concern is the long term damage that failing new entrant Australian international carriers would do to Australia’s overseas image in addition to the damage that such losses would cause to those involved with the airline in question. Confirmation of the draft IASC decision will mean that other Australian carriers will now have the opportunity of applying for capacity on the route that Australia Air had held provisional rights for since March last year. Whilst Australia Air would also be able to bid again it must come up with proof of the required $55m in backing and would this time be up agamst Qantas which has recently made it clear that it wishes to return to the Australia/ China route that it abandoned in 1987. The closing date for final submissions is August 25.
Saatchi & Saatchi For Qantas:
Advertising agency Saatch1 &Saatch1 has been appointed to handleall overseas advertising for Qantas,working in conjunction with the airline’s principal agency, Mojo. MoJo will handle all Qantas business in Australia and New Zealand, directing branding and positioning, while Saatchi & Saatchi will provide Qantas with a single overseas agency, a much more efficient situation than before where eight different agencies looked after that aspect of the business. Qantas shareholder British Airways has been a Saatchi & Saatchi customer for ten years.
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