Merged: QF/JQ reduce capacity
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Merged: QF/JQ reduce capacity
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...
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...
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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.
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.
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Just out
2 x 767s grounded
1 x 320
1 x 321 delivery cancelled
743's gone by December
Reduced 747-400 utilisation
2 x 767s grounded
1 x 320
1 x 321 delivery cancelled
743's gone by December
Reduced 747-400 utilisation
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!
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Flight reduction details
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.
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.
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
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
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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).
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"....but it is inevitable that a reduction in staff numbers will be necessary in selected parts of our business,''
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.
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.
The normal July pay review for the remaining 1000 executives will be deferred.
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QF to cut routes, jobs, aircraft
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.
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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......
I sincerely hope the powers that be have some ideas up there sleeve for when the oil price hits the critical point......
Silly Old Git
I know ! FUELWATCH !
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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
"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
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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!!
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!!
Last edited by airtags; 28th May 2008 at 13:08.