Qantas Cuts Capacity in Response to Oil Prices
Sorry only version of press release I could find.
Source asx.com.au http://www.asx.com.au/asxpdf/2008052...31g5wnckkp.pdf |
This big news out of that is:
- Accelerating retirement of the 743 to December - not surprising - Retiring one 737 (734 I believe) - Grounding two 767 and one JQ 320 (wonder which two they will ground) - Cancelling delivering of an A321. Some big decisions made given the price of fuel |
JQ axe ADL-MCY, BNE-HBA and SYD-PPP as well as reduce AVV/ADL/CNS flying
QF axe MEL-AYQ and SYD-OOL and reduce SYD-AYQ |
wow, i must say i wasnt expecting anything as serious as grounding to 767's and canning an a321 order, ground a320...surprising.
not so surprising is the exit from sydney-ool, but it makes it that much harder for pax travelling via syd to ool from per...re check ins make me angry:mad: edit: i bet virgin is grinning from ear to ear...e-jets are ready to shine in a BIG way. edit2: could we perhaps see some different routing arrangements for aircraft (744) going to europe? perhaps terminating at SIN, getting some a333's pronto? perhaps qf axe lax-jfk route? rethink its syd-scl route? |
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Any bets JQ will drop some Japan routes with the announcements next week?
perhaps free up a 332 to replace QF on MNL/HNL totally or some NRT services from say PER? Axing of SYD-CHC (mostly LCC's at CHC these days?) |
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Banjo |
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i wonder how service loads to singapore are going? 3 daily with singapore, soon to be 2 with tg, 2 x daily qf with a 3rd via denpasar/jakarta some days. although i guess its used for passage to europe mostly. perhaps we see a 744 going 1 x daily on this route in the future? although the a333's are on pretty weird rotations i think (from singapore and hkong) |
DJ would be feeling the exact pain as the QF group.
The E-Jets are no more economical than a 737 or A320, if infact I would have thought worse. also on the Tiger front I read somewhere with a big boss saying ' Tiger Australia is traveling reasonably well ' which isn't that convincing... Seems that the Oil price issue is hurting Aussie Airlines badly. :(:( |
Oil is hurting everyone around the world, that is what you pay with china and India consuming more.
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can anyone say the word merger?
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Open your eyes... look around the world... its happening everywhere and at a rather rapid pace too... reduce flights and A/C and fly at full capacity on what you have.
I cant see why DJ wont do a 'double daily' as you say... Their share prices a rocketing up!!! they are going great!!! (slight sarcasm :p) Its funny that REX is making more $ per quarter than DJ does in a year.. DJ will follow suit, they will just do it in the way they always do, Let QF or JQ do it first, cop the media bashing, then they sneakily do it and nobody notices... |
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virgin's last profit guidance was to have profit of around $140M for the full year.... Rex's latest announcement was for a profit of $8.2m for the 3rd quarter with full year profit expected to be around $23M.... Now how on earth is $23M from Rex in year more than Virgin and $140M????? |
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i doubt any merger will be done at all. |
All prices are going up, not just within AUS.
I am going to Zurich in October and made the Booking (Points Redemption) back in February. At that time the Taxes were AUD 482.88 - and a look now shows the Taxes to be AUD 547.18 for a Booking made today - and will probably be higher by the time that I depart. These Oil Prices are causing belt tightening everywhere. For info, a SYD-ZRH-SYD return, departing SYD 04/10/08 returning 04/11/08 on SQ is AUD 1590.00 + 547.18 Taxes = AUD 2137.18 - the Taxes accounting for 25% of the Total. Not surprisingly I guess, but to depart on SQ222 (A380) on that date adds AUD 200 to the fare. |
It's very odd JQ are dropping BNE-HBA meanwhile keeping it's 4x weekly BNE-LST rotation. I would have expected LST or both to go.
IIRC Isn't BNE-LST Subsidised? Jason |
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It would have surprised me less if JQ dropped the BNE-DRW nightly instead. |
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Last month I did a weekend MEL-LAX-PHL-SFO-MEL cost me $62US in taxes on a reward ticket. Which is weird, because when I took a friend to LAX on reward in December it cost $72US in taxes. I am 1K with United so many fee's are removed. Details: MEL on Saturday, 11 hours in LA, overnight flight to Philly, 11 hours, evening flight from PHL with a connection in SFO to MEL via SYD, and rocked up to work by 11am. Not Hotels or showers, amazing what you do in a bathroom of an aircraft :eek: No checkin luggage either. |
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"We are not planning to raise fare prices across the board"" so Basically saying "Were commiting suicide" |
Hi All,
So why aren't JQ axing the Perth-Melb (Tulla) flight? It leaves nearly the same time as the QF Flight? If they must keep that flight, at least ops it Avalon instead of having a duplicate flight. Stuart |
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FYI: It's we're as in we are, not were - your above comment implies that Tiger was / had been (somehow) committing suicide... |
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Qantas chief reaches for the knife amid speculation it could look to cut services on routes such as Manila, Honolulu and even some trans-Tasman services. wonder if this Board is the source of the writer speculation??? Banjo |
I think the writer is spot on. I wonder how the loads are for Manila, they certainly are not full. Honolulu just increased service by one per week so that may go back (due to grounding two 767). I also think Japan is on the cutting block too- I say it would be first to go
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I think we might see those 9 Daily AVV-SYD services cut to at least 7
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Lots of empty seats on SYD-CBR too to keep up the frequency (esp as QF have added more 737s to compete with the Ejets), but I guess QF won't cut services (or downgrade to Dash 8s on some services) unless Virgin reduce...
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Didn't that A321 that was cancelled have a bad airframe???, or a not healthy airframe. Apparently its not in the best of conditions
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How many more 738's are due this year? I guess if they are coming on more 734's are to be retired? QF have also wanted to get out of OOL for a while - so high oil prices are a good way to finally be done with that market. |
Expect cuts to Japan, Honolulu in my opinion
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(A321's - JQ)
I heard that there were contractual issues between JQ/QF and Spirit Airlines, with the first two taking too long to be delivered and a lot of money needing to be spent on them to get them up to scratch, and therefore JQ opting out of the contract for the last Aircraft...... |
Should retire the 734's and 743's A.S.A.P and convert 4 older 744's into BCF'S should save them some lease money on Atlas planes as well.
Stop growing Jetstar at such a high rate! Which is killing Qantas! |
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How do you surmise that? Inside info, or just a guess? |
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Even if you look at the routes QF mainline domestic announced they were withdrawing from yesterday you would have to say they really should have been JQ routes all along. SYD-OOL and MEL-AYQ are leisure routes and really do not support a full-service carrier anymore. Brad |
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Seems that Virgin Blue are about to follow suit and reduce services according to the Sydney Morning Herald.
Bit of a radical change as everybody's massive plans for rapid expansion seem to have been put on hold for the moment. And you know who you are, im not bashing DJ, this would be a good move for them too. Quote:
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HNL is a good performer for QF. If anything, BOM would be the worst performer. Certainly low yielding. |
What QF is doing and what DJ is about to do comes straight from 'Airline Profits for Dummies'.
Where's all the money made in Australia? Simple - Melbourne-Sydney-Brisbane. What have we seen a proliferation of in recent years? Hub bypassing, those hubs being the ones listed above. Now that's all very well when the oil price is favourable, but when it starts to bite you're left hauling a lot of empty seats at the back of a 767 around the Golden Triangle, and at the end of the day you give them away to fill the plane. Need to save some dough? Simple. Cut your hub bypassing, your flights to Avalon, your services from Timbuktu direct to Brisbane or Mackay. People want to fly from Hobart to Brisbane? Put 'em on a flight to Melbourne, then connect to Brisbane? Keeps the load factors high on Tassie-Melbourne flights and you can raise the fares without risking not having enough punters to fill them. Those same punters are then paying a realistic fare on the Melbourne-Brisbane leg, and the backpackers who only pay $69 to get to Brisbane can go back to catching the freaking bus. The QF decision to get out of the Gold Coast smells more like "whatcha gonna do about it?" than anything to do with cost cutting. Force the suits onto Jetstar and still get your slice of the market because there's no other full-fare carrier to take their business. It's the sort of calls you can make when you're the only full-service airline in the market. If the business lobby on the Gold Coast want more legroom that badly, they can catch a flight out of Brisbane. I heard a prediction today that oil might ultimately crack $200 a barrel. If that happens, we might be studying The Flintstones' approach to public transport. :D |
From this morning's Australian...
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Morning Granny, doncha love shiftwork!
Adrian: Quote:
Oil will crack $200 a barrel sooner rather than later. Ultimately it will become unavailable.... not for a little while yet though. |
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