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]

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

[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

[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]

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).

[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?

[Jason Carruthers]

EZE seems to be doing well initially. tomorrows QF17 is closed in all booking classes. Saturdays QF17 is closed in all economy booking classes with a few (Less then 9) fares left in each Business/First booking class.

[Justin L]

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?

I guess my own question has been answered. I just got the below Red E-mail for Adelaide-Kalgoorlie sale flights at $179, so I guess the announced routes are safe for now.

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Hurry! Sale ends midnight (AEDT) Thursday 27 November 2008.

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Adelaide one way from
Kalgoorlie $179

[Brad Myer]

Some changes have already happened and published:

*QF149/008 SYD-LAX-SYD will dissapear from the new year. Leaving SYD-LAX-SYD 2x daily only.

*JQ cuts SYD-HNL-SYD from 5 to 3 per week.

*Rumour MEL-PVG vv will be cut.

And I reakon the 3x weekly A333 QF85/86 MEL-HKG vv will be cut to make way for increased NRT services.

Apart from those I dont see many more major changes.

Thanks

[Michael Morrison]

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.

[Raymond Rowe]

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.

[Michael Morrison]

Where will the JQ capacity from HNL go? Perhaps that will be used for more Tokyo services?

I guess we may find out some news on Firday

[David B.]

My predicitons ;)

QF87/QF88 SYD-HKG-SYD (333)
QF85/QF86 MEL-HKG-MEL (333)
QF79/QF80 PER-NRT-PER (333)
QF101/QF102 MEL-PVG-MEL (332)

Cheers

[Lukas M]

Where will the JQ capacity from HNL go?
the return of Sydney-Kuala Lumpur perhaps?

[Ian Garton]

Wouldn't the freed up aircraft be going no-where, as these are cutbacks, not re-deployments?

[Robert Zweck]

Was disappointed last night on the local TV news to see the storyline " Qantas Grounded "

Made it sound like a maintenance issue...which it wasn't

[Marty H]

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.

[Gareth U]

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

I do think it is a valid point in relation to the comment about the viability of domestic widebody ops.

[Michael Morrison]

Wouldn't the freed up aircraft be going no-where, as these are cutbacks, not re-deployments?

Perhaps the QF ones, but I doubt you'll see a JQ one sitting around.

[Marty H]

I do think it is a valid point in relation to the comment about the viability of domestic widebody ops.

Go through QF scheduals and tell me how often they are operating a widebody between MEL-SYD then try and convince me every single one of those is full..............the results will be interesting.

I know where Ray is going because I put up with it all the time.

[Brad Myer]

I think most of the capacity cuts are already published:

*A332 replacing A333s on all china routes mean that they reduce seats by around 60 per flight.

*All B744s that operate to LHR now have PE fitted which means around 30 seats less in total per flight compared with 12 months ago.

*PE is being fitted to added to all USA B744 flights over the next 6-12 months meaning reduced capacity.

*2x daily CNS-NRT is cut from next month freeing up 2 B763s which have not been redeployed.

*Last A332 arrives next month and hasnt been deployed so thats "1 A330-200 which will be spare"

*As for the 6 B744s which will be grounded, simple they will be replaced by A380s over the next 18 months.

I dont think we will see any other MAJOR changes.

[lloyd fox]

Brad i agree .It is all in the wording of the Qantas statement which can be a little ambiguous.Also are the last 743'S apart of all this as not mentioned in statement ??? They are equivalent to a 744 capacity and even more.

I believe the A320 mentioned may come off of BNE-DRW-DPS ??? after march 09 which will release 1 A320 .

Cheers Lloyd

[Gareth U]

Go through QF scheduals and tell me how often they are operating a widebody between MEL-SYD then try and convince me every single one of those is full..............the results will be interesting.

I know where Ray is going because I put up with it all the time.

As someone who works on the aircraft and routes you speak of I still maintain that widebodies make sense. Until Qantas has some sort of mid-haul (less dense) configuration on their 73Hs I think it should be widebodies only on EC-PER flights.

As for SYD-MEL we have already seen a marked increase in 73Hs (in response to fleet availability and a softening market). Though I think they are being used at the wrong times in some instances. The vast majority of widebodies on SYD-MEL go out with loads too great for the 73Hs. Hence why I think their use in warranted.

You make it seem as if Qantas operates the widebodies out of pride?