Merged: QF/JQ reduce capacity

[ANstar]

Just out

2 x 767s grounded
1 x 320
1 x 321 delivery cancelled
743's gone by December

Reduced 747-400 utilisation

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

International route announcements due next week...

[Derek P]

Media release:


QANTAS CUTS CAPACITY IN RESPONSE TO FUEL PRICES

SYDNEY, 28 May 2008: The Qantas Group today responded to continuing high fuel prices by announcing a range of cost saving measures including the cancellation of five per cent of Available Seat Kilometres (ASKs) – the equivalent of grounding six aircraft.
The Chief Executive Officer of Qantas, Mr Geoff Dixon, said Qantas’ fuel bill would increase by more than $2 billion in 2008/09, representing around
35 per cent of the company’s total expenditure.
"The fact is that fuel prices are something we have no control over, so we have to look harder at areas where we do have control," Mr Dixon said.
"Despite our fuel hedging strategy, fuel surcharges, two separate
across-the-board fare increases and a recruitment freeze, we are not bridging the widening gap between the actual increase in the cost of fuel and the amount we offset."
Mr Dixon said the Qantas Group would manage the reduction in ASKs by:
retiring one B737 aircraft;
grounding two B767 aircraft and one Jetstar A320 aircraft;
cancelling the delivery of one Jetstar A321 aircraft;
accelerating the retirement of its four B747-300 aircraft, currently
operating trans-continental services to Perth, by December; and
adjusting the flying patterns of other aircraft, including reducing the
utilisation of the B747-400 fleet.
"This will enable us to make significant changes to domestic and
international flying for both Qantas and Jetstar. In some cases, this will involve pulling off routes entirely. In other cases, we will scale back frequencies and capacity."
In the domestic market, Mr Dixon said:
Qantas would exit its Gold Coast-Sydney and Ayers Rock-Melbourne routes
and reduce Ayers Rock-Sydney services from August;
Jetstar would exit its Sydney-Whitsunday Coast, Adelaide-Sunshine Coast,
and Brisbane-Hobart routes from July; and
Jetstar would reduce services on some Adelaide, Avalon and Cairns routes
by August.
"Wherever possible, we have tried to minimise the overall impact of the changes. For example, Jetstar will continue to offer more than 140 return services to the Gold Coast each week, including up to 10 services a day on the Sydney-Gold Coast route.
"The Qantas Group, through Jetstar, remains the largest carrier in and out of the Gold Coast."
Mr Dixon said Qantas was finalising details of its international network restructure, including capacity adjustments and market exits, and would announce these within the next week.
"Qantas remains a fundamentally strong company, with a good balance sheet and a commitment to investment that includes a $35 billion order for aircraft," Mr Dixon said.
"We must make these hard decisions now, however, if we are to ensure the ongoing strength of Qantas, preserve the jobs of the vast majority of our current workforce, and position ourselves for growth when the trading environment improves."
He said that the magnitude of the changes would require a reduction in staff numbers.
"This week we will launch an accelerated leave program to mitigate the requirement for redundancies, but it is inevitable that a reduction in staff numbers will be necessary in selected parts of our business," Mr Dixon said.
"As always, we will communicate with our people. In the first instance, redundancies will be carried out on a voluntary basis."
Mr Dixon said that in addition:
the pay for all of the company’s senior executive group would be frozen;
and
the normal July pay review for the remaining 1,000 executives would be
deferred.
He said passengers affected by the schedule changes would be contacted to discuss alternative arrangements.

[sickofqf]

Just out

2 x 767s grounded
1 x 320
1 x 321 delivery cancelled
743's gone by December

Reduced 747-400 utilisation

haven't us ginger beers already pretty much exceeded these targets for them ?

Oh, and the 743's were always going by the end of the year ( well, since they weren't gone by last year and were band-aided for another 18 months due A380 delays) and are already in semi-retirement in Perth !! LOL!!

So, Geoff.....how about coming up with a CREATIVE way of MAKING money instead of always looking for ways to CUT !!!! Oh, that's right, not a creative or imaginative bone in his body!

[Wod]

Yup.

It's on the QF Website

http://www.qantas.com.au/regions/dyn/au/publicaffairs/details?ArticleID=2008/may08/Q3768

[Thylacine]

SMH 3.5 28 Aug.
Qantas has been forced to cut its flight capacity due to rising fuel prices, and warns that its full bill will increase by more than $2 billion next financial year.

The airline said the decision to cut capacity by 5% is equivalent to grounding six aircraft.

"The fact is that fuel prices are something we have no control over, so we have to look harder at areas where we do have control,'' chief executive Geoff Dixon said.

"Despite our fuel hedging strategy, fuel surcharges, two separate across-the-board fare increases and a recruitment freeze, we are not bridging the widening gap between the actual increase in the cost of fuel and the amount we offset,'' he said.

Qantas will now retire one B737 aircraft, ground two B767s and one Jetstar A320.

It will cancel the delivery of one Jetstar A321 plane.

It will also move faster towards retiring four B747-300 aircraft, which currently operate to and from Perth, by December.

Flying patterns of other aircraft will be adjusted, which include reducing the use of the B747-400 fleet.

"This will enable us to make significant changes to domestic and international flying for both Qantas and Jetstar,'' Mr Dixon said.

"In some cases, this will involve pulling off routes entirely. In other cases, we will scale back frequencies and capacity.''

In Australia, Qantas will cut back some routes.

It plans to drop the Gold Coast-Sydney and Ayers Rock-Melbourne routes and reduce Ayers Rock-Sydney services from August.

Jetstar will drop its Sydney-Whitsunday Coast, Adelaide-Sunshine Coast, and Brisbane-Hobart routes from July.

Jetstar will also reduce services on some Adelaide, Avalon and Cairns routes by August.

Mr Dixon said Qantas was also finalising details of its international network restructure, including capacity adjustments and market exits, and would announce these within the next week.

"Qantas remains a fundamentally strong company, with a good balance sheet and a commitment to investment that includes a $35 billion order for aircraft,'' he said.

"We must make these hard decisions now, however, if we are to ensure the ongoing strength of Qantas, preserve the jobs of the vast majority of our current workforce, and position ourselves for growth when the trading environment improves.''

Mr Dixon warned there would be staff cuts.

"This week we will launch an accelerated leave program to mitigate the requirement for redundancies, but it is inevitable that a reduction in staff numbers will be necessary in selected parts of our business,'' he said.

At the same time, Qantas plans to freeze pay for all of the company's senior executive group.

The normal July pay review for the remaining 1000 executives will be deferred.

Note "pay review deferred" for 1000 executives, not reduced and no mention of redundancies in executive ranks.

[RodH]

How much of the fuel cost increase could be offset by a 50% cut in the enormous benefits paid the QF board etc . ?
They would still be left with a remuneration package that most of us could only dream about and even winning lotto could not equal.
Lets face it , they will screw you and the travelling public for the costs long before they screw themselves .
Mind you I would love to tell them to go and F.... themselves but I would be way down in the queue for that.
One wonders how they can shave or do their make up in the morning as they surely must see themselves in the mirror and it's not a pretty sight to anyone with a spark of decency.
Good luck to all who fly and those who fly them , I hope aviation will continue for a good while yet in spite of this fuel upset .
Watch this space for a dramatic drop in the price of crude ala the Dot.com bust.
Rod H
:E:E:E:E:E:E

[blueloo]

Whats the rego of the 767s being grounded, and anyone know what the specific maintenance issue is/are (other than being a giant pile of poo).

[B A Lert]

"....but it is inevitable that a reduction in staff numbers will be necessary in selected parts of our business,''

First to go should be all of the many consultants, especially those who have taken a package from Qantas and then returned very quickly on contracts. Nice work if you can get it but hardly fair to those on whom the axe is likely to fall. If these people (i.e., the consultants) are so good and vital to still have on the payroll in one way or another, why were they given a package? :E:E

Good luck to those likely to be sacrificed in the name of efficiency, but heres hoping the airline takes the chance to get rid of some dead wood. There is still a lot around.

[Dragun]

So how will this affect pilot recruitment? Not just for the future, but including those with letters of intent?

[Henry Winkler]

From which operation is the 737 coming from? Mainline or JC?

[Going Boeing]

At the same time, Qantas plans to freeze pay for all of the company's senior executive group.

The normal July pay review for the remaining 1000 executives will be deferred.

His timing is perfect - he freezes the executives salary two weeks after awarding himself a $2,000,000 bonus. It must be wonderful to have such a thick hide. :yuk:

[air doris]

Just out, Qantas has announced they are pulling a few routes and retiring a few aircraft due to the fuel situation. To go are QF services SYD-OOL, MEL-AYQ, Jetstar services SYD-Whitsunday, ADL-Sunshine Coast, BNE-HBA. JQ Adelaide, Avalon and Cairns services to be reduced. Also to go is 1 B737, 4 B747-300 and a cancelled order of aJQ A321. International routes to be announced shortly. Job losses unsure.

[Van Gough]

With the aviation industry burning 757 million litres of fuel a day worldwide its no surprise the oil is running out and the price going up:(

I sincerely hope the powers that be have some ideas up there sleeve for when the oil price hits the critical point......

[In The Sky]

I wonder what else will go. Is this QFs way of shedding the workload of the LAMEs??

[tinpis]

I know ! FUELWATCH ! (http://www.abc.net.au/news/stories/2008/05/28/2258507.htm)

[argus.moon]

Folks this has been done elsewhere earlier

[Mr. Hat]

yes they do Van Gogh, they're ging to cry poor come eba time. Beware those on an upcoming eba.

[Tankengine]

It IS EBA time for longhaul right now!!:ooh:
That is probably what most of this is about!!:ugh:

[flyer_18-737]

Funny is when Mr Tiger Airways goes :

"We are not planning to raise fare prices across the board"" so Basically saying "Were commiting suicide"

"Tiger Australia is traveling reasonably well"Not a very believeable statement, infact I would think the total opposite

[airtags]

tinpis - well done
post of the day !

- advice from my very old wise accounting lecturer (who was also a former psychologist.....yeah I know everyone has a journey...) keeps ringing in my ears - "look beyond the money for the real money agenda."

One could reasonably speculate that the QF equivalent of the fuelwatch story may have a similar outcome!!

[KRUSTY 34]

I smell a RAT!!!

Fuel goes up, fares goes up. Everyone's doing it, so why cancel services?

Maybe they have realised the pool of suitably qualified pilots is in fact finite. Maybe in their projections, there won't be enough drivers to crew all of their services.

If you follow the logic (see bullsh!t), then why not ground all your aircraft. fuel then won't cost you a cent!

[Mr. Hat]

Tankengine, its like a poorly acted school play.

Ohhh pilot shortage....now we have to cut routes (rex qlink) because of those pesky pilots (its their fault - some of them call sick).


Eeeww high fuel....:{mr:{union:{we:{can't:{afford:{that:{we'll:{give:{y ou:{2:{%:{


The same old overpaid novices.

[coaldemon]

Well I would have thought that with higher fuel prices there is automatically higher airfares. Unfortunately the public doesn't want to pay more money (airfares being price elastic) so discretionary travel declines hence less planes required and so on down the economic tree. In the end pilots jobs reflect the desire of the public to fly. If it is too expensive they don't fly and that is that..

[lazysundays]

Every airline is presumably burning the same fuel at a similar price... there has to be more to this announcement then just fuel prices.

[lazysundays]

Just realised I was paraphrasing you Krusty, perhaps less eloquently but with the same intent.

[Taildragger67]

Lazysundays,

Well yes, but as Coaldemon points out, if the price of your biggest input goes up, but your revenue stays the same, you get thinner margins; to keep your margin, you have to raise your prices. But that means less people buying - so less supply (ie. seats) required.

Best to take your most expensive-to-run bits of kit (ie. Classics of all sorts & other oldies) out and leave it to the newer, more efficient ones to take up the slack - or just cut the marginal routes.

Might all mean a bit of harder arguing with Boeing to get compensation for the787 delays though, as QF will be wanting to get the latest, most efficient kit they can up the line. So maybe some more 76s or 330s (with the latest donks) or even a few 777s for a while!!

[numbskull]

Dixon is just manufacturing a gloom and doom story to smash the LAMES.

If there was such gloom and doom, why didn't yesterdays announcement coincide with a profit downgrade. Under the ASX continuous disclosure rules they must keep the market informed of any profit downgrades.

Put simply, there is no forecast hit to profits.

They're not actually sitting planes on the ground. They are just keeping a few spares in the system to minimise delays due to the LAMES action. It will cut their fuel cost by a couple of %, better enable them to manage the disruptions due to the LAMES and create a gloom and doom story to scare everyone. PERFECT!!!!!!!!!!

When has GD deferred executive pay reviews to? From July till August?? My bet is that if they are sucessful in keeping the LAMES and other unions to 3% then they will instantly restore those services and gives themselves a huge pay rise for a job well done.(paradoxically, its probably justified if the unions whimp out of this fight!!)

Its a great tactic that 95% of the public and some QF staff will swallow. I guess it all hinges on whether 50% of LAMES swallow it. I hope not!!

[Bula]

Guys I'm sorry to say but its looks like QF are starting to reduce their leisure routes, so there is every possibility that they are looking to continue with the "downsize". Its just an excuse, but a plausible one at that.

The fact that the A321 for JQ was scrapped was because of the poor condition of the airframe and the paper trail which seemed never ending. The A320, I'm pretty sure, was the A320 that is going back to Jetstar Asia or to Jetstar Pacific a little earlier then planned.

Its funny how no-one has mentioned the capacity increase in JQ of 30% over the coming months. I sense some Melbourne Ayres Rock and Sydney Ayres Rock sectors going JQ's way. Though people would not like to admit it, JQ will be the driving force behind cost reductions and the ever increasing price of fuel. The low cost base has been established, which is specifically what QF is looking to do to mainline, reduce non-fuel related costs. Maybe the day will come where JQ provides all ground services. Who knows.....

Interesting times ahead......... I hope EVERYONE comes out through the other side. Fingers Crossed. Bring on Brazils and China's entry and re-entry into the international oil market. Though at current prices, if that were to happen it wouldn't surprise me if they reduced production worldwide to keep the price as high as it is. Keep on hedging.

[Capt_SNAFU]

Why let JQ run to AYE when QF has a monopoly on the route and can pretty much charge as they please? Makes no sense when you slug them for premium prices.

As for the parking of jets, classic retirements are nothing new, parking a 737, probably a Jet Connect 300, they didn't spec mainline, probably replace it with a 400 from the mainline. Another 800 is just about to turn up along with a few to follow. A321 is surpirsing but if the airframe is rubbish then that is probably a good thing.

Having a look at the routes and especially the turn around times is a good thing. Nothing spells delay and therefore more fuel burn than 35 minute turnarounds with aircraft changes.

[JETTRONIC]

Dixon is just manufacturing a gloom and doom story to smash the LAMES.

Couldn't say it better my self..... Funny they announce this just before the industrial action.

Smell a rat:confused:

[Rak-a-san]

Does that wrinkled ol fool at the helm of QF honestly think that all of us are so stupid to fall for this......... obviously the public will be.

The JQ A321 was cancelled because it was in such apaulling condition and all of us that have anything to do with JQ know it.

The B737-400 are on the hit list to go as the new 800's arrive and there is one of these turning up in June.....Der:ugh:

The B747-300 were going at the end of the year anyway as the A380's arrive :D

The ZX series 767's are pretty close to stuffed, I am not sure on their leases but were to start to disappear from this year onwards as well.

A reduction in holiday destinantions....... Well?..... let me see, isnt most of the country currently experiencing winter of some sort ...... isnt this the time we all travel least....... Der

I smell a wave of EBA's coming up, so we can all be told how bad off its going to be for us all. As for the exec salaries, 1000 of, btw thats 1 exec to every 36 employees (a little top heavy), thats to make us feel good about not getting paid.

Well mr di*k son (Dixson) , a lot of LAME's took a 6% pay reduction over the last 18months because this company begged us to re-roster to save a amount of money for rough times ahead, then only to turn around after it was all over announce another record profit. cmon give us a break if you mr GD cant say something positive then dont say it....... no wonder the QF moral is shot to pieces

[BD1959]

It's interesting that some of the reporting is also stating that there will be a recruitment freeze - heard this on the ABC last night and was puzzled when it failed to materialize in the Media Release etc.

It's also reported on ABC Online (http://www.abc.net.au/news/stories/2008/05/28/2258308.htm) and News (http://www.news.com.au/business/story/0,23636,23776411-462,00.html).

So...is that a recruitment freeze only for non-457 applicants?

Interesting, though, that if this is supposedly aimed at the LAMEs & Joe Public that S&P have also fallen for the spin and cut QF's credit rating - now that will hit the bottom line.

BD

[Reeltime]

I hope the lames union among others, get their PR people on message with this ASAP.

This is just another cynical ploy by Dixon in his obsession to destroy collective bargaining in Qantas. As others have already mentioned there is nothing new in these aircraft 'retirements'. The timing is of course perfect..eh Mr Oldmeadow.

Qantas executive management, if you are serious about saving money, give back some of the millions of dollars in bonus's you've raked out of the company in recent years.

What is that I hear? 'No' you say...of course I expected nothing less.

You greedy B:mad:d's!

[Flyingblind]

My first thought when hearing of this 'news' yesterday was 'what's the real story?' contacting mates working at the Rat i found out there was no story, just the same old spin and BS from past masters of it.

Is any one still surprised at this mob and their tactics? most on this forum aren't of course, but the great unwashed are.

Will be interesting to see the accompanying Spin & BS when the currant round of EBA's etc are out.

Now that the public have been primed for poor old Qantas doing it hard they may have the publics sympathy on clamping down on 'excessive' employee wage/condition requests.

Screw the workers a bit more GD, mission accomplished.

GD & Co continue to set new corporate lows.

[cama7]

Where was it reported that Dixon gave himself a $2 million bonus recently?

[ANstar]

Rak-a-san you make some good points!

This certainly looks like a bit of spin from the PR dept!:ugh:

[VH-JJW]

Having now seen the QF promotions it looks like the recent allocations account for the reduction in flying, 27 Classic Captains awarded slots on other types should just about do it for 4 a/c. Should this be the case then the question is, how long ago were these reductions planned? Allocations are not done overnight.

ALthough I believe it will be the LCC who are most affected by high oil prices, I find it hard to believe that QF would not seek other opportunities for the JQ cost structure.

Nevertheless, whilst some put their heads in the sand and hope this will 'blow over' the harsh reality may be that we are seeing yet another paradigm shift in the airline industry.

[Wingspar]

Yeah Rak a San...good points!

QF have been keeping capacity for a long time now and this is no supprise. Dixon's good at the spin associating it with the oil price.
The Cooly flights have been on the nose for a while...QF would have left long ago if it wasn't for the local white shoe brigade that don't want Jetstar!
Great timing too with the EBA's....notice there hasn't been any profit downgrades announced.
Fares have gone up indicating Qantas feel the market can absorb it but then announce capacity cuts...doesn't make sense in the pure business sense.

[airbusthreetwenty]

Yeah Rak a San is right!

The 321 they cancelled is a heap of $hit.

I'd place money on no aircraft being *parked* as they'd have us believe.

The 320 suggested as being parked will pick up the QF OOL flights, plus i wouldn't mind betting additional SYD-AVV flights.

If the 787s were to arrive on time, do you think there would be this "reduction" in capacity?? No, I don't think so. There's only so much sticky tape you can apply to an old aircraft.

Where are the lurking journos now???


Oh crap, what's that? A piece of the sky just fell on their heads.

[Thylacine]

Ben Sandilands @ Crikey writes:

The screwing has only just begun for Australian air travellers.

The Qantas decision to cut capacity by around 5% is nothing compared to 10-11% groundings announced by carriers like American and Air France/KLM, and confirmations that major reductions will be made by the three biggest low cost carriers of all, Southwest, Ryanair and easyJet.

But the oil screen that Qantas was surprisingly slow to erect, and Virgin Blue might copy any moment, hides other developments.

Qantas is out to bust the backside off its pilot and maintenance unions much faster and harder than ever before, helped at least so far by the Rudd government’s quick compliance with a demand that it approve 457 visas to import foreign pilots for it’s Jetstar subsidiary rather than transfer pilots from its own operations.

This strategy is stressing the relationship between the Australian Federation of Air Pilots which covers significant numbers of Jetstar and Virgin Blue pilots and the Australian and International Pilots Association, the Qantas union, which is held in condescending contempt by the carrier’s management.

Of course this divide and destroy approach, under the cover of an oil price emergency, might fail. Jetstar isn’t in the game when it comes to competing in the global pilot market against Emirates, Etihad or even Singapore Airlines.

And the Qantas fleet groundings are not news. They include three aged and chronically unreliable Boeing 747-300s that ground themselves as soon as they are towed toward a passenger gate, and have individually and collectively paralysed the transcontinental schedules to Perth for hours at a time, and even more than a day, throughout this year.

Qantas and Virgin Blue are sitting on a mountain of cash capable of covering their operating costs for months on end if the guidance they gave in their last financial reports is holding true, and killing off older jets, returning expiring leases and forcing passengers into fewer and, if humanly possible, fuller jets at much higher fares all makes perfect sense for shareholders.

The six jets to be deferred or grounded by Qantas represent around 1650 seats in domestic service, or more than twice the 720 seats offered by the token Tiger Airways fleet of four, but going on five, A320s.

Tiger counts for nothing in the current situation. It has no useful frequencies, it doesn’t fly to Sydney at all, and it has the most punitive check-in and baggage rules. It will fly for just as long as its 49% owner Singapore Airlines can stand the pain.

It’s declared target market for ultra-cheapies comprises people who can no longer afford to drive to an airport to use a $29 fare and get shafted for all the "extras".

The fuel shock dynamics for Qantas/Jetstar and Virgin Blue are more uncertain. It could be that Virgin Blue’s being in the middle, between the expensive Qantas product, and the crammed in Jetstar experience, is also where the higher yielding frequent fliers might migrate faced with constantly rising fares and fewer and in some case no Qantas seats.

Then again, Virgin Blue’s trolley snacks from hell and satellite news by Foxtel can make what’s left of the Qantas Cityflyer timetable look really good.

There is going to be a lot more screwing before any winners emerge from behind the oil screens.

[airbusthreetwenty]

That's probably the first report from Ben Sandilands that I've actually agreed with.

[Highflyer787]

Any ideas which routes will be reduced from ADL/AVV/CNS?

[oldhasbeen]

anybody in the know have any idea why QF website is still selling fares on the QF services to the Gold Coast? :hmm:

[Arctaurus]

anybody in the know have any idea why QF website is still selling fares on the QF services to the Gold Coast?

I guess travel will be on Jetstar.

[Mstr Caution]

Reducing Capacity???

Hasn't Qantas got total aircraft orders close to $35 billion?

The figures provided earlier this year were:
20 * A380's & purchase rights for another 12
5 * A330-200's
5 * B737-800's
3 * A321's (less one)
4 * A320-200's (less one)
5 * Q400's
115 * B787 of which 65 are firm orders & purchase rights on another 50
:8

[Keg]

It's interesting when you read this news of reduced capacity and feed it into the forward delivery schedules and other information.

So we've retired a 734. The delivery schedules show a 737 arriving yesterday with two more to arrive before the beginning of July. There are six tentative deliveries scheduled for 2009 and ten tentative slots for 2010. This is consistent with reports that I've heard of a net increase in fleet size of 15 airframes and the retirement of 734s by the end of 2010.

So we're retiring four 747 Classics and 'grounding' two 767s. We have three A330s scheduled to arrive before the end of this year as well as three A380s. Reports from our 767 drivers indicate that two 767s are permanently grounded at any one time due to lack of spares or general serviceability issues.

Either way, the capacity doesn't seem to have been cut that much in the short term and still looks good for the longer term. The QF CP indicated in his recent burst- published after the announcement of the capacity cut- that the next training year should be just as big as this one.

Finally, there is the report in today's Australian about 'not all turbulence for Qantas'. As others have said, no profit downgrade either.

http://www.theaustralian.news.com.au/story/0,,23785078-23349,00.html?from=public_rss

I'm no expert but I don't see the need for the panic button just yet.

[porch monkey]

You're right Keg. No need for the panic button. No profit downgrade, and the figures as descibed by yourself for the a/c coming and going don't add up tho, do they. Like some others have mentioned, I smell spin and a fishing expedition for public sympathy. The reason? How many EBA's are due now/soon? Nothing like increasing the pressure not to give long overdue payrises to the people who make the company what it is. Especially since they're pretty good at lining their own pockets huh?

[Arctaurus]

Keg and PM,

I agree - when you sit down and look carefully at the so called "grounding" of aircraft, it's all spin by Master Dixon, with most of these as planned retirements in any case. Nice work Geoff.:ugh:

Sounds more like industrial positioning rather than anything else.

Re the AYE cancellations, I wouldn't mind betting the service will move over to JQ, so the QF group still has a presence there.