QF to cut jobs/routes

[Kendall Roy]

- 738s deferred due domestic capacity requirements (or lack thereof)
- 787s deferred due Boeing delays

 

[Nigelinoz]

Text of the CEO speech is available at http://www.asx.com.au/asxpdf/20120216/pdf/424d54ymzzhr0l.pdf
Cheers
N'oz

 

[brads92]

From press release:

"The following network changes will be made in order to adjust capacity to market conditions and route performance:

Withdrawal from the Singapore-Mumbai and Auckland-Los Angeles routes, effective 6 May 2012. This is in addition to previously-announced withdrawals from the Hong Kong-London and Bangkok-London routes, effective March 2012.


Aircraft changes on the following international and domestic routes: Sydney-Bangkok (Boeing 747 replaced with Airbus A330 from 10 June), Sydney-Perth (Boeing 747 replaced with Airbus A330 on certain services from 6 May) and Melbourne-Perth (additional A330 services added from 6 May).


Capacity increases on the Los Angeles-New York route from 6 May (Airbus A330 replaced with Boeing 747) and Sydney-Tokyo route from 10 June (one Airbus A330 service per week replaced with a Boeing 747 service, resulting in daily Boeing 747 services).


Early retirement of two further Boeing 747 aircraft (in addition to the four early B747 retirements announced in August 2011)."

 

[Kendall Roy]

Despite the hype/rumours, the announcement is a bit of a fizzer!

 

[markis10]

Despite the hype/rumours, the announcement is a bit of a fizzer!

What were you expecting, 500 Jobs, two routes gone and fleet reduction is a fizzer if you were expecting growth, the profit result was to be expected.

 

[drron]

These changes had been known for some time.We are flying SYD-BKK on July 1 and AA notified me of a minor change in times ~ 2 months ago and on the updated itinerary the plane was listed then as the A330 so hardly something new.

 

[Kendall Roy]

What were you expecting

More routes to go....

I note they're no longer utilising LAME's to dispatch aircraft.

 

[rechoboam]

There will be huge job losses all over this year (and also people changing/starting new jobs, which no-one ever mentions). I'm not sure why the media or QF maintenance staff are considered so much more important than everyone else. Not that they are less important but every employee in the country has needs and aspirations. I suppose foreign carriers will end up hiring local staff too.

I don't see the route changes as massive. On a personal note I will call today and try to get on QF metal LAX-NYC.

 

[chrispy3276]

Interesting to see in their results an 82% increase in redemptions of products from the QFF store; their auto-redemption option for Woolworths cards must be starting to pay dividends

 

[gibspmuh]

I'm just glad the SYD-CGK route has managed to be retained for the time being. Given that Garuda has gone to daily flights and has been significantly undercutting QF's fares in both Y and especially J I'd imagine it's not the most profitable of routes for QF at the moment.

 

[markis10]

Interesting to see in their results an 82% increase in redemptions of products from the QFF store; their auto-redemption option for Woolworths cards must be starting to pay dividends

185000 redemptions apparently!

 

[missafternoondelight]

Yes as drron says, none of this is all that surprising. As sad as I am to see less 747s on domestic and trans-Tasman routes, it is a responsible decision, given the current economic environment. The brand has to be kept profitable and it is good that QF has seen the writing on the wall before it is too late.

 

[Nigelinoz]

Jetstar's PBT for the period was $147M,up $4M.
Cheers
N'oz

 

[oz_mark]

Yes as drron says, none of this is all that surprising. As sad as I am to see less 747s on domestic and trans-Tasman routes, it is a responsible decision, given the current economic environment. The brand has to be kept profitable and it is good that QF has seen the writing on the wall before it is too late.

Arguably putting the 747's on the domestic route was never a responsible decision, but a knee jerk reaction to Virgin.

 

[harvyk]

Arguably putting the 747's on the domestic route was never a responsible decision, but a knee jerk reaction to Virgin.

True, but it's a decision I absolutely loved...

 

[amaroo]

No more F to BKK and no more widebody trans-tasman.

Man, that hurts

Wonder what BAEC members will think about half their journey to OZ being dumped back in J?

Obviously - SIN is where the real money is made:mrgreen:

 

[Danger]

16 August 2011

Hi again everyone

As our most valued customers we want to share with you our commitment to building a stronger Qantas. A Qantas that will be better for you.

Qantas International is an important part of the Qantas Group and it represents a core element of our appeal for our Frequent Flyers. The economic sustainability of Qantas International is very important to the whole Qantas Group. But it is a steadily fading business, suffering big financial losses and a substantial decline in market share.

So we must change. We have a five year plan and it starts today. It’s time for a new Spirit of Australia, one that reflects how we live, work and travel today.

Our plan has four elements:

• Opening gateways to the world
• Growing with Asia
• Being best for global travellers
• Building a strong, viable business

[emphasis added]

The previously announced cuts to "gateways to the world" of BKK-LHR and HKG-LHR are now joined by AKL-LAX and SIN-BOM.

"Growing with Asia" apparently means dropping HKG, BKK and BOM. And PER-NRT is "suspended indefinitely", despite the announcement today of a "rebound in the Japan market".

Put this in the other (now locked) thread... Some things not mentioned in the announcement - does this mean no changes to these services on QF metal - there was considerable speculation about these on here.

• SIN-FRA
• SYD-MNL
• SYD-HNL
• SYD-CGK
• SIN-BOM
• SYD-NRT - seemed implied QF21/22 would remain to feed the JQ franchise?
• LAX-JFK
• AKL-LAX

Hi guys,

The above routes are all operating business as usual.

As an FYI...previously QF used to fly over Asia, on the way to Europe, now with the new airline starting in Asia we hope to fly more within Asia, so some new routes.

Cheers, Red Roo

Apparently not operating "business as usual" anymore.

Hi Farmer,

It is true that Qantas International is reducing some services as has been outlined today.

However, there'll also be some new opportunities for earning and using points to get to more places. With Malaysia Airlines joining OW, the KL hub will provide a new way to get to different parts of Europe. In addition with all of our deepening alliance relationships, Any Seat Redemptions will be available with over 43 airlines, and Classic Awards with 26 partners [emphasis added].

And some more services today.

. . . This new Qantas will be strong, dependable and profitable now and into the future. And it will bring you an even more rewarding Frequent Flyer program, including more ways to earn and redeem points.

Apparently a more rewarding FF program means less options to earn and less to redeem. On the upside, as a frequent flyer program, I'm sure we're all thrilled about spending our points on toasters and sandwich makers.

 

[medhead]

Some interesting numbers in the ASX announcement. $194 million hit due to industrial action, including $28 mil for lost forward bookings prior to the grounding. But if yield improved were they really lost bookings?

Interesting that the "normalised" result of qantas isn't mentioned, that is without the affects of the grounding. But if we add back $194 mil to $66 mil that gives a very healthy improvement over the previous corresponding period. If we add back in the cost of the grounding qantas performance is roughly unchanged. Obviously these are not the real numbers.

The orange cancer! Capacity grew 15% overall, EBIT increased 3%. Pretty unimpressive result. Wonder what the return on capital is with that growth.

No more Mumbai-SIN or AKL-LAX operations, removal of 747 from domestic ops and also replacing it on the BKK run, however 747 back on LAX-JFK run and also to Japan.

Also deferred 737-800 deliveries (due to supplier delays???).

The asx announcement says 787 due to the supplier, can't see anything about 737 in there but that is probably my eyesight.

On the Perth route replace 747 with A330 on certain services. I'm not sure if that means certain (current) 747 services, or certain of all services (i.e. All 747 services)


Sent from the Throne (80% chance) using Aust Freq Fly app

 

[Princess Fiona]

Will having the 747 on QF107 mean the return of FASA'S to JFK?
If so I can live with that enhancement

 

[oz_mark]

On the Perth route replace 747 with A330 on certain services. I'm not sure if that means certain (current) 747 services, or certain of all services (i.e. All 747 services)

AFAIK the only regularly scheduled 747 services QF have in Perth are the 581/582 turnaround. I would imagine it would be those. It is nearly always operated by OJD, so I would think OJD may be one of those slated to exit the fleet.