Qantas cutting Capacity
 

No word on exact routes to be dropped or cut but looks severe as per below

Qantas slashes profit forecast, cuts capacity

Qantas has just announced capacity cuts equivalent to grounding ten aircraft, with outgoing ceo Geoff Dixon saying the global financial crisis was continuing to affect passenger demand.

"We are in unpredictable times and the international business market, in particular, has slowed," he said.

The capacity cuts are in addition to reductions announced earlier this year, and will include halting all planned domestic market growth for both Qantas and Jetstar.

QF will also not take up the planned lease of two A330-200 aircraft and will change the flying patterns of existing aircraft "to free up the equivalent of six B747-400s, three B767-300s and one A320-200 aircraft between now and mid-2010".

Dixon said the carrier's actual flying in the next six months will be four percent below the equivalent period in 2008, and said that although no further job cuts were expected the carrier would "be seeking further efficiencies by implementing an accelerated leave program."

He said the slower demand meant Qantas was now expecting a pre-tax profit for 2008-09 of around $500 million.

Source: Travel Daily 25th November

I don't see the recently launched SYD-EZE lasting too long...

EZE is in the full press release

Mr Joyce said Qantas also:
* would seek further profitable flying opportunities, such as the non-stop Sydney-Buenos Aires services which commenced yesterday; and
* take delivery of a further two A380 aircraft in December and commence A380 services to London via Singapore in January.

seems QF has a different opinion

Banjo

Actually EZE should do ok as there is minimal competition and prices are high.

I presume as more A380's come online, then we will see some reduction in flying.. Perhaps AKL-LAX will go daily 332 (rather than 744) etc etc

Flying large aircraft such as A332's and B763's on domestic routes in currently a 'softening' market makes no sense.

It does if those aircraft are replacing 743's.... as it is a reduction in capacity (ie SYD/MEL-PER).

Does this include already announced, but yet to begin expansion such as intra-WA and ADL-KGI, or planned but yet to be announced market growth?

EZE seems to be doing well initially. tomorrows QF17 is closed in all booking classes. Saturdays QF17 is closed in all economy booking classes with a few (Less then 9) fares left in each Business/First booking class.

I guess my own question has been answered. I just got the below Red E-mail for Adelaide-Kalgoorlie sale flights at $179, so I guess the announced routes are safe for now.

Some changes have already happened and published:

*QF149/008 SYD-LAX-SYD will dissapear from the new year. Leaving SYD-LAX-SYD 2x daily only.

*JQ cuts SYD-HNL-SYD from 5 to 3 per week.

*Rumour MEL-PVG vv will be cut.

And I reakon the 3x weekly A333 QF85/86 MEL-HKG vv will be cut to make way for increased NRT services.

Apart from those I dont see many more major changes.

Thanks