Dow Jones Newswires 17-10-01
2314GMT Set To Meet Unions Monday
The airline, which recently saw its domestic market share spike to 85% following Ansett's problems, expects to decide next week whether it will buy Boeing 737-800s or Airbus A320s.
The first two aircraft are scheduled for delivery in January followed by another two each month after that.
Qantas also will take options for at least a further 40 narrow body aircraft at current prices, it said.
"The domestic market has changed fundamentally and irrevocably over the past year and our new strategy will enable us to meet the increasing customer focus on flexibility while in no way reducing the quality of the Qantas product or service," said chief executive Geoff Dixon.
Short term measures introduced when Ansett first stumbled will be gradually discontinued as services from the growing Virgin Blue airline and other carriers expand.
Dixon added that the all-economy class fleet and the lower operating costs of the new aircraft will help lower Qantas' cost base.
"This is essential given the state of the global aviation industry, including the significant recent rises in insurance and security costs and aviation charges," he said.
"We also need greater productivity and lower labor costs to compete effectively worldwide," he said, noting that the company is set to meet with unions Monday.
Earlier this month, Dixon noted in an internal memo to staff that Qantas needs "to prepare for a world that will see hundreds of millions of dollars of costs (e.g. insurance, security) added to the Qantas bottom-line from the aftermath of the Sept. 11 terrorist attacks."
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