Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th Mar)

[cosi]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

OGB was listed for sale recently.

PER - NRT getting canned

OGB usually does the Perth-Tokyo so its sayonnara (goodbye) for one 767

 

[markis10]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

OGB usually does the Perth-Tokyo so its sayonnara (goodbye) for one 767

I had her to Darwin last month, makes sense as the oldest bird in the fleet.

 

[ChrisCunard]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

I saw VH-OGB at SYD earlier this month. Outwardly she didn't look so good - areas of the aircraft were painted as if "patched over" - I know that means nothing safety wise but looks can be deceiving - I must admit I was happy she wasn't my aircraft.

 

[ChrisCunard]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

Comments of mine in italics after reading the article at Australian Aviation Magazine that has quite a bit of detail. Any other thoughts / comments ?

- Cut capacity growth for the second half of the current financial year from 14% to 8% for domestic & 10% to 7% for international operations, - So still growth, just less of it?

- Suspend Qantas' Perth-Toyko flights from May 8, I assume this is due to lack of demand and reliance on the older less efficient B767-300's. I suspect that QF services Perth-Tokyo will be via Sydney to utilise the B747-400 space?

- Swap smaller Airbus A330s in place of Boeing 747-400s on the Sydney-Toyko route, Perhaps will free up more Int. A330's for Perth-East Coast domestic?

- Bring forward the retirement of two Boeing 767-300ERs, - OGB aside, will the other likely be the -338 or -336 models? Will they be the international -338's? - Also, this isn't really "early" retirement as they were intended to be replaced with 787's by now so it's actually "late early retirement".

- And look to reduce management staff numbers, and reduce annual and long service leave liabilities. - The latter does make good business sense. The former, according to Geoffery Thomas (interview heard on ABC this morning) it will make Qantas leaner.

 

[Beasley]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

Got a trip booked to New Zealand in July flying Sydney-Christchurch-Queenstown and return. Wonder if our flights will be affected?

 

[kamchatsky]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

Got a trip booked to New Zealand in July flying Sydney-Christchurch-Queenstown and return. Wonder if our flights will be affected?

It should not be affected. But I guess you are flying JQ instead of QF?

 

[Beasley]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

It should not be affected. But I guess you are flying JQ instead of QF?

QF on the way over but JQ on the return leg (unfortunately)

 

[V1213]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

Once again the Japanese routes are the first to get a slice off. Definitely happened the first time the big bite of the GFC occurred.

It's probably also got a lot to do with the fact that these are the routes most affected by recent events and thus have the biggest drop off of patronage at the moment, rather than a more general GFC-type downturn...

Am I misled in thinking that QF gets some sort of support from the WA Government to operate the PER-NRT flights? If this is true then what does the suspension mean for this agreement?

 

[adampenrith]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

The Press in Christchurch is reporting the cancellation of 3 domestic flights per day on JQ and a Christchuch Melbourne return daily on JQ.

They don't mention which domestic flights.

Garuda is also cutting back some DPS NRT flights due to the drop in Japanese taking vacations after their horror shake/tsunami

 

[JohnPhelan]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

- Bring forward the retirement of two Boeing 767-300ERs, - OGB aside, will the other likely be the -338 or -336 models? Will they be the international -338's? - Also, this isn't really "early" retirement as they were intended to be replaced with 787's by now so it's actually "late early retirement".

I believe the plan is to retire the -336 models first. At any rate, before the international-configured 767s can be pensioned off, QF needs to move HNL flights to another aircraft type (probably A330 until the 787s appear?)

With the suspension of the PER-NRT route, I think that leaves SYD-HNL as the only international route (apart from NZ) operated by the 767.

 

[markis10]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

Some interesting observations by Elizabeth Knight in todays SMH:

The company's no-frills carrier, Jetstar, will bear the brunt of these losses, given its strong presence in the Queensland tourist market, Japan and New Zealand. Already some analysts covering the sector are speculating that this might push Jetstar into a loss in the second half.

But this would have to be my favourite:

Joyce denies this, saying it is the second-most profitable domestic airline in Australia, after Qantas mainline. Given the other city-based airlines are all in loss, Jetstar could be earning $1 and still claim that honour.

Qantas continues to tinker with the levers

 

[pauly7]

I believe the plan is to retire the -336 models first. At any rate, before the international-configured 767s can be pensioned off, QF needs to move HNL flights to another aircraft type (probably A330 until the 787s appear?)

With the suspension of the PER-NRT route, I think that leaves SYD-HNL as the only international route (apart from NZ) operated by the 767.

Are there still 767's floating round on TT? I thought it was all next gen 73H, a couple of the last JC 734's before they get replaced by some more next gen 73H deliveries and the A330....?

 

[pauly7]

It's probably also got a lot to do with the fact that these are the routes most affected by recent events and thus have the biggest drop off of patronage at the moment, rather than a more general GFC-type downturn...

The Japanese corridors have been decimated for all and this is a complete non suprise... I'm sure once they get back on their feet services will be re-established.

 

[markis10]

Re: Qantas to cut routes, aircraft, staff ahead of $140m profit hit (The Aust. 30th M

Are there still 767's floating round on TT? I thought it was all next gen 73H, a couple of the last JC 734's before they get replaced by some more next gen 73H deliveries and the A330....?

767s were pulled of the route last year for TT, the 6 INT aircraft are pretty much on DOM duties.

 

[pauly7]

767s were pulled of the route last year for TT, the 6 INT aircraft are pretty much on DOM duties.

Thought so