I think it is all about economics.
The strength of the Aussie dollar (driven by mostly mineral prices and our higher interest rates) is making it unattractive for the Japanese tourist. That is the real driver behind the drop in passenger numbers; Australia is no longer a cheap destination. Combined this with the rising price of fuel and to some extent labour costs (ie everyone not just pilots; engineers, biscuit and bag chuckers and check in staff) driving up the price of fares, resulting in less of our litle Japanese friends visiting.
The tourism industry will take a hit with job losses for sure. My next question is what routes will go next as the above causes make Australia a less viable destination for overseas visitors? Qantas seem to be drip feeding the announcements, maybe to protect the share price and the confidence in the Airline and tourism industry. Which I feel is a fairly predictable and responsible action.
What next?
My tip a reduction in frequecy in the Cairns Ayers Rock sectors and Cairns Alice Springs sectors, Hamilton Island also may be reduced or perhaps a smaller Dash 8 used. After all they take passengers directly from the international flights that have been axed, and maybe Jet Star placed on the routes. Who knows? I think a bit more belt tightening will occur by Qantas and maybe Jet Star will be the winner as they redefine the Airline.
Anyway watch this space interesting times, I hope eventually the Cairns region will get the services back as it is good for us with interests in the Ski fields in Japan.