Qantas to resume direct flights to Beijing in January 2017

Qantas says that daily direct flights between Sydney and Beijing will resume next year, as it battles Virgin in China.

Alan Joyce announces the resumption of flights to Beijing. Pic: Renee Nowytarger

National carrier Qantas has said it will resume direct flights to Beijing out of Sydney in January for the first time since the financial crisis as its competition with Virgin Australia is taken offshore.

The airline (QAN) said daily flights between Sydney and the Chinese capital would begin on January 25, 2017, with return flights timed for connections with its domestic and trans-Tasman network.

It will be the first time Qantas has operated the route since 2009 amid a financial crisis-led pullback.

The extension into Beijing expands the airline’s services to the Greater China region, where it already operates direct flights to Shanghai and Hong Kong and expands on its joint venture agreement with China Eastern.

The Chinese airline will codeshare on the new Qantas route, while the Australian airline will codeshare on China Eastern’s Sydney-Hangzhou, Sydney-Kunming and Brisbane-Shanghai routes.

It comes amid a substantial boom in Chinese tourists into Australia, with the industry racing to keep up with swelling demand.

Earlier this year Virgin Australia flagged plans to fly into Beijing and Hong Kong as it welcomed two major Chinese players — Nanshan and HNA — onto its substantial shareholder register.

Qantas is looking to beat it to the punch with the Beijing route, with Virgin likely to begin operations later in 2017.

It is an extension of competition seen between the two airlines locally and through trans-Tasman routes and, in the wake of a recent bitter price war in Australia, the two are now seeking to find an edge in Asia.

Qantas Group chief executive Alan Joyce said the new route represent a bid to tap into a growing sector of the market, with an additional 3,300 seats a week added between Australia and China as a result of the plan.

“The tourism industry in Australia is very excited about what the Chinese market will deliver over the next few years, especially given it’s already become our second biggest source of visitors after New Zealand,” Mr Joyce said.

“Australia is now at the top of the wish list for Chinese travellers thinking about where they want to go next. There are 21 million people in Beijing alone.

“The potential is tremendous.”

Alan Joyce with Chinese dragon. Pic: Renee Nowytarger

Mr Joyce said Qantas had seen strong demand on its Shanghai and Hong Kong routes, with the addition of China Eastern marketing for its Beijing service tipped to ensure strong interest in the new route.

Qantas will also boost its own marketing in the region in combination with national bodies.

“We’ll be ramping up the work we’re already doing with the state tourism bodies and Tourism Australia on marketing campaigns in China to make sure we make the most of this potential,” Mr Joyce said.

“Our pitch is that if you want to experience the best of Australia, your trip should start with the national carrier.

“The business travel market is another key focus for this route, particularly off the back of the free trade agreement with China, which is increasing the amount of freight we’re carrying.”