Qantas to increase domestic capacity in 2012/13

[SeatBackForward]

This was released to the stock market today:

QANTAS TO INCREASE DOMESTIC CAPACITY IN 2012/13
SYDNEY, 4 May 2012

The Qantas Group today announced it will increase capacity on domestic
Qantas, Jetstar and QantasLink routes during 2012/13 to strengthen its network in the business and
leisure markets.

A range of changes, including aircraft upgrades and additional frequencies, will be made to provide
greater choice and convenience for customers.

• Qantas will add extra services during peak times on core east coast business routes between
  Sydney, Melbourne and Brisbane.
• The reintroduction of Boeing 747 services on the Sydney-Perth route and more Airbus A330
  services on the Melbourne-Perth route will increase capacity in the east-west market and give
  more customers access to the award-winning Skybed product in business class.
• Jetstar will increase capacity in its key leisure markets.
• QantasLink will increase capacity across Queensland with the introduction of F100 jet services
  between Brisbane and Emerald, complementing Q400 services and providing cascaded
  growth in key regional markets

 

[SeatBackForward]

There's also a strategy update issued the highlights are:

• The reduction in 2012/13 expenditure will be achieved through changes to the Group’s fleet plan,
  including the rescheduling of two Airbus A380s previously intended for delivery in early 2013. These
  aircraft will now be delivered in 2016/17. The Group’s final six A380s will be delivered from 2018-19.
• Progress continues on the Group’s international transformation initiatives, with benefits of $280-$365
  million to be realised across financial years 2012-14 from improving fleet economics, deepening
  alliances, withdrawing from loss-making routes and modernising operational practices.
• “Today we announce significant capacity increases and product upgrades for the Qantas, Jetstar and
  QantasLink domestic networks in 2013/14, focusing on core business and leisure routes. This will
  ensure that the Group retains a profit-maximising 65 per cent domestic market share while delivering
  the best customer experience in the market.
• “We have made substantial progress in our fleet renewal program – our average passenger aircraft
  age is now 8.3 years, which is highly competitive with other major global carriers.
• “As a result we are in a good position to reduce capital expenditure, targeting investment at business
  areas that deliver sustainable returns while maintaining flexibility in forward fleet commitments. With
  12 A380s now in service and our Boeing 747 reconfiguration program well underway, we have made
  the financially prudent decision to reschedule a further two A380 deliveries – enabling significant
  capital expenditure savings.
• “We are focused on making changes that will increase productivity and competitiveness in a range of
  areas, including modernising and consolidating our catering operations, streamlining heavy
  maintenance and introducing new engineering processes. Further updates on these initiatives will be
  provided in the coming weeks.
• “Jetstar continues to expand across Asia, with Jetstar Japan to commence services ahead of
  schedule in July 2012 and Jetstar Hong Kong expected to do so in mid-20131, in the first ever joint
  venture with a Chinese airline. Airlines and investors in Asian markets recognise the value of
  partnering with the Qantas Group to capture growth opportunities.

 

[cove]

The acknowledgement of the popularity of the 747 between Perth and Sydney is a sign QF is listening. QF581 and QF 582 are winners from what I have seen.

 

[docjames]

The acknowledgement of the popularity of the 747 between Perth and Sydney is a sign QF is listening. QF581 and QF 582 are winners from what I have seen.

Or that they flip-flop as much as Juliar.....


Where has this 744 capacity come from that perviously they withdrew?

 

[lovestotravel]

There's also a strategy update issued the highlights are:

• The reduction in 2012/13 expenditure will be achieved through changes to the Group’s fleet plan,
  including the rescheduling of two Airbus A380s previously intended for delivery in early 2013. These
  aircraft will now be delivered in 2016/17. The Group’s final six A380s will be delivered from 2018-19.
• “We have made substantial progress in our fleet renewal program – our average passenger aircraft
  age is now 8.3 years, which is highly competitive with other major global carriers.

So another 2 x A380's delayed, that is even worse than the plan last year to delay the last 6..

I did laugh at the "fleet renewal program" it's quite easy to improve average fleet age by simply removing the old 744's and 763's and not really introducing many new aircraft

Sad times at Qantas

Emirates will happily snap up the A380's I am sure.

 

[markis10]

Or that they flip-flop as much as Juliar.....


Where has this 744 capacity come from that perviously they withdrew?

OJD is being reinvigorated.

 

[Paddy55]

The acknowledgement of the popularity of the 747 between Perth and Sydney is a sign QF is listening. QF581 and QF 582 are winners from what I have seen.

Yes, absolutely!

However that 747 is turning into an A330 shortly, isn't it?

(Akin to snatching defeat from the jaws of victory IMHO :mrgreen: :evil

 

[codash1099]

So another 2 x A380's delayed, that is even worse than the plan last year to delay the last 6..

I did laugh at the "fleet renewal program" it's quite easy to improve average fleet age by simply removing the old 744's and 763's and not really introducing many new aircraft

Sad times at Qantas

Emirates will happily snap up the A380's I am sure.

It certainly shows a lack of confidence in their future.

 

[SeatBackForward]

It certainly shows a lack of confidence in their future.

why? Jetstar doesnt need A380s!

 

[eastwest101]

I can't see enough new aircraft to increase capacity at QF. Unless they have had a lot of aircraft sitting around idle. With the delayed deliveries of A380's, reduction and refurb of 747's, late 787's going to JQ anyway and subsequent late return of QF A330's and late retirement of 767's, no new B737-800's on the way, are the old B737-400 all retired yet? That does not equal a capacity increase in my opinion.

 

[smit0847]

withdrawing from loss-making routes

Hedge your bets - FRA?

In all seriousness though, what should they be doing to improve the financial viability of QF? Everyone (including me) if quick to criticise what they do wrong, but what would you suggest they do to fix it? (And not non-viable solutions like 'get rid of expensive staff' etc).

 

[oz_mark]

no new B737-800's on the way, are the old B737-400 all retired yet? That does not equal a capacity increase in my opinion.

A 737-800 was delivered on Anzac Day, and there are production numbers/rego's assigned for the next three. I doubt they are years away!

 

[SeatBackForward]

Hedge your bets - FRA?

In all seriousness though, what should they be doing to improve the financial viability of QF? Everyone (including me) if quick to criticise what they do wrong, but what would you suggest they do to fix it? (And not non-viable solutions like 'get rid of expensive staff' etc).

1) Stick to providing a premium service, and target the emerging Asian economies for this. These economines have $$ and people who want it. Routes to Kuala Lumpur, More Indian destinations??
2) Pushing further down the Jetstar model is not going to work, Asian companies will whip QF's pants when it comes to cost cutting. Stick to providing quality.
3) Sacrifice the long hauls to Europe if need be, get decent partners (OW or not ) to do the final hops around Europe

 

[lovestotravel]

I can't see enough new aircraft to increase capacity at QF. Unless they have had a lot of aircraft sitting around idle. With the delayed deliveries of A380's, reduction and refurb of 747's, late 787's going to JQ anyway and subsequent late return of QF A330's and late retirement of 767's, no new B737-800's on the way, are the old B737-400 all retired yet? That does not equal a capacity increase in my opinion.

There is basically a 744 being retired every 2 months for the next 2 years and nothing really replacing them

Now that the 2 x A380's are being further pushed back from 2013 to 2016 :shock:

 

[medhead]

Hedge your bets - FRA?

In all seriousness though, what should they be doing to improve the financial viability of QF? Everyone (including me) if quick to criticise what they do wrong, but what would you suggest they do to fix it? (And not non-viable solutions like 'get rid of expensive staff' etc).

1) Stick to providing a premium service, and target the emerging Asian economies for this. These economines have $$ and people who want it. Routes to Kuala Lumpur, More Indian destinations??
2) Pushing further down the Jetstar model is not going to work, Asian companies will whip QF's pants when it comes to cost cutting. Stick to providing quality.
3) Sacrifice the long hauls to Europe if need be, get decent partners (OW or not ) to do the final hops around Europe

Some good ideas there. Not sure why you think the long hauls to Europe should go.

I would also suggest they should stop saying "we are a premium airline". Take a look in the mirror and stop trying to live in the past. Then focus on what they do now in premium cabins and get that right. Then adjust prices accordingly and aim to fill the premium cabin with cash money passengers.
Focus on what they are doing in the domestic sphere. It is chalk and cheese comparing my domestic experiences between qantas and virgin Australia. I'm not saying anything about staff attitude on this, I'm talking about the whole experience. Priority boarding for example, WTF can't qantas get this right. WTF can qantas in ADL control a boarding process. It makes me hate spending money with qantas, knowing that I will face such a frustrating situation at 6am when I'm just not in the mood. You know this is absolutely not about me being special. Just that if it annoys me, it must annoy others and really they shouldn't be annoying the people flying every week. Basically GET IT RIGHT, including enforcing all rules, like carry on.
Another thing is to focus on staff morale, build a better relationship between management and staff.

Actually, thinking about it more, they need consistency (consistently consistent). I want to book with Virgin because they have that and regardless of the other criticisms of them, I know what I'll get 98% of the time. Qantas are simply not consistent, I don't know what I'll get and I hate that. That what they need to fix, IMO.

BTW this is not a ford v Holden thing, I fly both airlines, it is about how they make me feel and what makes me want to fly with an airline. I think if you get people wanting to fly with you, half the battle is won.

 

[oz_mark]

The really good news is here

“Our priorities remain to build on our strong domestic business, enhance Qantas Frequent Flyer, turn around Qantas International and grow Jetstar in Asia,” Mr Joyce said.

(That may be my bolding!) :shock:

 

[lovestotravel]

The really good news is here



(That may be my bolding!) :shock:

Oh oh

"enhance"

Well I guess when Qantas International doesn't exist the FF program needs to be enhanced to include more Jetstar destinations.....................

 

[SeatBackForward]

Oh oh

"enhance"

Well I guess when Qantas International doesn't exist the FF program needs to be enhanced to include more Jetstar destinations.....................

They might "enhance" the program in several ways
- Introduce a new DIAMOND tier, who knows what they'll offer but it'll get dressed up as an enhancement
- sever ties with Oneworld, so you can have "Exclusive" FF benefits..lol
- Fridge magnets for all?

 

[Noob]

Looks like some good benefits in there for the flying public.....I think.

They might "enhance" the program in several ways
- Introduce a new DIAMOND tier, who knows what they'll offer but it'll get dressed up as an enhancement
- sever ties with Oneworld, so you can have "Exclusive" FF benefits..lol
- Fridge magnets for all?

PlatinumTwo®?

 

[markis10]

The really good news is here



(That may be my bolding!) :shock:

(Think I have been a QFF too long.)