More musing from the 'opinion for hire' Tony Webber. While QF have no fleet planning at all I doubt they would be underataking the massive A330 refurb project if they planned to pull out of Asia.Cookies must be enabled. | The Australian
JETSTAR is set to become Australia’s main international carrier as Qantas looks to wind back its worst performing arm. Chief financial officer Gareth Evans has confirmed about half of the group’s $2 billion in cuts will come from Qantas International, which lost $262 million in the last six-months of 2013.
As a result, the Flying Kangaroo could be reduced to just a handful of “protected” international routes between Australia and the US and New Zealand.
That would allow the airline to reduce costs by transferring more of its operations to Jetstar which is based on a budget model, with cheaper staffing and running costs.
Qantas former chief economist Tony Webber said it was fairly clear the airline was working towards Jetstar taking on the bulk of its international work.
He pointed to the establishment of Jetstar Asia and the announcement 14 new Dreamliner aircraft purchased by the group would go to the budget carrier rather than Qantas.
“They really feel that Jetstar is the saviour of the company, and have grown Jetstar at a much faster pace,” said Mr Webber.
“Even though Jetstar Asia is doing really poorly, they’ve invested too much time and effort to just give it away.”
JETSTAR is set to become Australia’s main international carrier as Qantas looks to wind back its worst performing arm. Chief financial officer Gareth Evans has confirmed about half of the group’s $2 billion in cuts will come from Qantas International, which lost $262 million in the last six-months of 2013.
As a result, the Flying Kangaroo could be reduced to just a handful of “protected” international routes between Australia and the US and New Zealand.
That would allow the airline to reduce costs by transferring more of its operations to Jetstar which is based on a budget model, with cheaper staffing and running costs.
Qantas former chief economist Tony Webber said it was fairly clear the airline was working towards Jetstar taking on the bulk of its international work.
He pointed to the establishment of Jetstar Asia and the announcement 14 new Dreamliner aircraft purchased by the group would go to the budget carrier rather than Qantas.
“They really feel that Jetstar is the saviour of the company, and have grown Jetstar at a much faster pace,” said Mr Webber.
“Even though Jetstar Asia is doing really poorly, they’ve invested too much time and effort to just give it away.”
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