Qantas cutting Capacity

[Malcolm Parker]

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

[Jon Harris]

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

[Andrew P]

Originally Posted by Jon Harris

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

[Marty H]

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

[Michael Morrison]

Originally Posted by Marty H

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).

[Raymond Rowe]

Originally Posted by Marty H

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

Still better to run a 767 full than 3 737 half full or cancelling flights to fill one aircraft.Cancelled flights equates to ****ed of passengers.

[Brad Myer]

The SYD-lAX cut was announced in the last release back in September or something. Perhaps the 3 x weekly MEL-HKG axe will allow for the 333 to ops the SYD-CGK flights.

The 333s for CGK are coming from the PVG/PEK route which will be ops by all 332.

[Marty H]

Originally Posted by Raymond Rowe

Still better to run a 767 full than 3 737 half full or cancelling flights to fill one aircraft.Cancelled flights equates to ****ed of passengers.

You clearly dont understand the 'softening' market, but thanks for trying.

[Michael Morrison]

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

[Justin L]

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.

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?