Big Changes are afoot !!
Media release yesterday confirms the A330-200/300s are to replace the B767s on international routes. The B767s are to go to domestic flying. No idea who will be flying them yet, presumably longahul, as the A330-300 will be fitted with SkyBeds in J class, so they will presumably only fly international routes.
I think the A330-200s will end up like the Boeing 767-300s are now, fly some domestic sectors, and some international. Like the 767s, both divisions will probably operate them.
And in regards to the new domestic carrier:
Qantas plan for no-frills air battle
By Steve Creedy
August 22, 2003
QANTAS has plans for a new low-cost domestic airline, signalling an airfare war with no-frills rival Virgin Blue and dramatic changes in working conditions for many of its employees.
Qantas chief executive Geoff Dixon unveiled the proposed discount airline yesterday as the carrier announced plans to replace 3300 full-time jobs with casual and part-time workers. Qantas is emerging from the worst year in aviation history to report a $343.5 million after-tax profit.
The new airline is to be aimed primarily at increasing Qantas's profits on leisure routes, but it will also allow the Flying Kangaroo to negotiate new workplace deals without the inefficiencies Mr Dixon believes inhibit the mainline operation.
It is the latest development in a massive restructuring that already has the carrier at loggerheads with unions.
The profit news came with a blunt warning that Virgin had reached a "line in the sand" where Qantas would defend its market share.
"We believe that around about 65 to 70 per cent (market share) is what Qantas must defend and we're going to defend it," Mr Dixon said.
But Virgin, in welcoming any competition from a new Qantas offshoot, said it had heard the threats before.
"Ultimately, it is the public who will decide which airline they support," spokesman David Huttner said.
Qantas has been quietly investigating the possibility of a no-frills airline for about five months, but a team headed by senior executive Alan Joyce has now been given the job of taking it to the next stage.
A final decision on whether the project will proceed is due in November.
Mr Dixon was coy about details, but said the new airline would operate independently of Qantas, even though it would be a wholly owned subsidiary.
"We believe there's probably emerging in Australia a position for a low-cost leisure carrier and we think we'd probably be a very, very good group to do it," he said.
Mr Dixon said it would not be aimed at Virgin Blue and would differ "quite substantially" from other low-cost operations.
Mr Dixon said further reductions in the workforce would be achieved through natural attrition.
Last edited by UpperDeckRight; 22nd Aug 2003 at 11:23.