What's the outlook for Air Australia over the next five years?

What's the outlook for Air Australia over the next five years?

Will they get a loyalty program and sort of become a full service airline?

Well, they've just converted *from* being a full-service airline to becoming a low-cost carrier.  Effectively to fill the void that Virgin's upmarket move has left.  I can't see them starting a full loyalty programme with status or anything like that, but they have said previously that a "buy-ten-get-one-free" type programme is on the cards.  And that'd make a lot more sense than most traditional loyalty programmes do for leisure travellers.

So now we have three low cost airlines in Australia: Jetstar, Air Australia and Tiger. Two full service airlines: Virgin Australia and Qantas. Is this the way the industry should be?

In response to the original question, Air Australia will most likely continue to expand it's domestic services from Melbourne, targeting infamously price-fought routes like MEL-Gold Coast, Perth or Sydney. It might think of tapping in further to the Asian Market, having already established flights to Phuket, whilst maintaining it's American service also.

I doubt the have any intention of a frequent flyer program, nor any interest in returning to the status of a full service airline..

Does they codeshare with anyone? if they dont, do you think they will?

I think they won't be around in 5 years

So it turns out, you were 100% correct!

Bought out or go broke?

Broke

I havent flown on Air Australia and i would like to hear from someone that has but they do not seem to appeal to be. They present themselves as basic. I think more of SkyWest basically because they have a better image. You only have to take a look at their information page and you see flaws staraight away. But then again there is a chance they could stick around to see a few million passengers thru.. If you take a look at Jetstar, they are an excellent low cost carrier, serving their purpose (purpose is to treat customers like cows). They may be mediocre but they get you there as much as you may hate them... take a look another 100 metres down the graph and you have tiger. Tiger may as well close down here and now, please! So all things considered i think that Air Australia is sort of kidding themselves a little bit. They brought on a Business Class as soon as they started - that was slightly weird.. no lounges... not even online checkin yet! Time will tell what happends to them at any rate.

No Air Australia is moving forward rapidly - aklrunway, you are incorrect (once again) - but any how I happen to be investing largly in Air Australia, and the prostects are looking good! Ive done quite a lot of research into it, including contacting the general manager. Actually, they have every intention of a frequent flyer program. In the long run, Air Australia is going to be the large Air opperated transport company in Australia, including Outerspace where they will take people for joy rides in helecopters. The windows on the helicopter will have 2 mega pixal transperancy and a 5.0 focus lense. The front windscreen will be made of special hyperactive material that reflects the suns rays, contining to convert them to energy. Although I am a piolot, I am currently working on Air Australia's new logo and design makeover. Thanks for your support, and please Vote Up!

Cool story bro. Don't know what you've been smoking but keep dreaming. Besides, they've already had a new logo and design so you're a bit late there.

Hear Hear... a mad man on the dope i'd say. Dont let your dreams turn into night mares.

So... was I incorrect?

Yup!