Qantas gets Cocky - News - ZDNet Australia

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This story was printed from ZDNet Australia.
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Qantas gets Cocky

By Megan McAuliffe, ZDNet Australia
May 02, 2001
URL: http://www.zdnet.com.au/news/soa/Qantas-gets-Cocky/0,139023165,120219152,00.htm

The crash of Australia's first Internet airline does not spell disaster for online travel bookings. In fact, Impulse's online booking model proved so popular, that it threatened the country's national carrier.

Australia's discount domestic airline announced yesterday it would be swallowed by Qantas after its institutional investors, worried by soaring fuel prices and a low Australian dollar, withdrew their backing.

Impulse made its name with the travelling public by introducing cheaper online fares on the major trunk routes. At one stage it drove one way fares between the capital cities to an all time low of AU$33.

Just weeks before, the domestic operator changed its brand from Impulse Airlines to Impulse.com.au, an address previously owned by an Adelaide company, and announced a new look Web site, signalling it was in for a long fight with the traditional airlines.

"It's existence brought forward a need for Qantas to innovate and catch up," www.consult.com.au analyst Ramin Marzbani told ZDNet Australia.

Impulse's collapse was initially seen by many as an indication that the Internet business model was not working, however, the indications are that it may have been working too well.

"Online travel bookings are big in Australia, they account for 20 percent of online travel and entertainment tickets," Marzbani said.

Now that Impulse has withdrawn from the market, Marzbani believes "Qantas's urgency to innovate has diminished."

"I don't expect Impulse will teach Qantas much more about the Internet than they already know," he said.

The take-over will secure more than 1000 Impusle jobs, according to Qantas Public Affairs manager Des Sullivan.

However, Sullivan says it's too early to comment on what the airline's intentions are for its online presence in Australia.

"It's early days, all we can say is the Impulse brand under this arrangement will disappear, including the Web site," Sullivan told ZDNet.

A spokesperson for Impulse Airlines says it will be business as usual until May 13. "Then the business will transfer across to a branded Qantas product."