Qantas/Jetstar market reductions/exists
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Qantas/Jetstar market reductions/exists
Available on the ASX:
QANTAS ANNOUNCES INTERNATIONAL SCHEDULE CHANGES
SYDNEY, 5 June 2008: The Qantas Group today announced changes to its
international services as it continues to manage the impact of high oil prices.
The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the changes, which follow last week’s announcement regarding domestic services, included market exits, capacity cuts and the replacement of Qantas services with Jetstar services on a number of routes.
Mr Dixon said the cost of fuel had changed the way the Qantas Group had to do business over the next two years.
“We have to look closely at each individual market, including the number of frequencies we operate and which of our flying businesses is better suited to serve those destinations.”
Mr Dixon said Japan and South East Asia would be the most affected markets by the schedule changes.
“The Japan-Far North Queensland market has also been particularly difficult for Qantas for a number of years. At current fuel prices, the Group would lose more than $100 million operating to Japan under our existing schedule.”
Mr Dixon said Qantas would engage the tourism industry at seeking better ways of offering viable options for inbound tourism into the future.
Mr Dixon said the changes to the Japan schedule included:
The withdrawal of Qantas’ thrice-weekly Melbourne-Tokyo (Narita) A330 return services from September 2008;
A reduction in Qantas’ Sydney-Tokyo (Narita) A330 return services from nine to seven return services per week from September 2008;
Jetstar’s withdrawal from the Cairns-Osaka-Nagoya route from December 2008;
The replacement of Qantas’ 14 weekly B767 Cairns-Tokyo (Narita) services with a daily Jetstar non-stop A330 two-class service from December 2008; and
The introduction of new Gold Coast-Tokyo (Narita) services five times per week, operated by Jetstar with two-class A330s from December 2008, in addition to Jetstar’s daily Sydney-Gold Coast-Osaka services.
Mr Dixon said that under the new schedules, the Qantas Group would continue to offer significant capacity – more than 11,500 seats per week – between Japan and Queensland.
To support the schedule changes, Jetstar would need to free up A330 aircraft and, as a result, would:
Withdraw from its Sydney-Kuala Lumpur operation to make available an A330 aircraft; and
Replace its existing three weekly A330 services that operated between Sydney and Ho Chi Minh City with five A320 return services on the new route of Sydney-Darwin-Ho Chi Minh City from September 2008.
He said Jetstar would also replace Qantas on:
The Perth-Denpasar route, with up to four Jetstar A320 services taking over from Qantas’ B737-800 services from December 2008; and
Perth-Jakarta, with three Jetstar A320 return services per week replacing the existing three Qantas B737-800 services from December 2008.
Mr Dixon said Qantas would close its pilot base in Cairns, with around 40 Cairns-based pilots returning to Sydney or other bases.
“Qantas will maintain its existing cabin crew base in Cairns to service domestic operations, and Jetstar will establish a new base for pilots and cabin crew in Perth from October,” he said.
Mr Dixon said that as a result of the international schedule changes, there would be a small number of job losses in Cairns and Japan. These were in addition to those flagged in last week's announcement, which were expected to be in the low hundreds, and would also be managed initially on a voluntary basis.
He said in addition to the Asian flight changes, Qantas would reduce its B747-400 Sydney-Los Angeles services from 17 to 15 per week, following the commencement of A380 flights on the route at the end of the year.
“Using the larger A380s on a spread of our USA services will enable us to grow Melbourne-Los Angeles capacity and maintain our total current capacity levels from Australia to the USA.”
Mr Dixon said Qantas had done everything possible to mitigate the effects of the schedule changes we have been forced to make.
“We will continue to work with individual markets and look for opportunities as conditions improve to address capacity issues and reinstate services where and when we can.”
SYDNEY, 5 June 2008: The Qantas Group today announced changes to its
international services as it continues to manage the impact of high oil prices.
The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the changes, which follow last week’s announcement regarding domestic services, included market exits, capacity cuts and the replacement of Qantas services with Jetstar services on a number of routes.
Mr Dixon said the cost of fuel had changed the way the Qantas Group had to do business over the next two years.
“We have to look closely at each individual market, including the number of frequencies we operate and which of our flying businesses is better suited to serve those destinations.”
Mr Dixon said Japan and South East Asia would be the most affected markets by the schedule changes.
“The Japan-Far North Queensland market has also been particularly difficult for Qantas for a number of years. At current fuel prices, the Group would lose more than $100 million operating to Japan under our existing schedule.”
Mr Dixon said Qantas would engage the tourism industry at seeking better ways of offering viable options for inbound tourism into the future.
Mr Dixon said the changes to the Japan schedule included:
The withdrawal of Qantas’ thrice-weekly Melbourne-Tokyo (Narita) A330 return services from September 2008;
A reduction in Qantas’ Sydney-Tokyo (Narita) A330 return services from nine to seven return services per week from September 2008;
Jetstar’s withdrawal from the Cairns-Osaka-Nagoya route from December 2008;
The replacement of Qantas’ 14 weekly B767 Cairns-Tokyo (Narita) services with a daily Jetstar non-stop A330 two-class service from December 2008; and
The introduction of new Gold Coast-Tokyo (Narita) services five times per week, operated by Jetstar with two-class A330s from December 2008, in addition to Jetstar’s daily Sydney-Gold Coast-Osaka services.
Mr Dixon said that under the new schedules, the Qantas Group would continue to offer significant capacity – more than 11,500 seats per week – between Japan and Queensland.
To support the schedule changes, Jetstar would need to free up A330 aircraft and, as a result, would:
Withdraw from its Sydney-Kuala Lumpur operation to make available an A330 aircraft; and
Replace its existing three weekly A330 services that operated between Sydney and Ho Chi Minh City with five A320 return services on the new route of Sydney-Darwin-Ho Chi Minh City from September 2008.
He said Jetstar would also replace Qantas on:
The Perth-Denpasar route, with up to four Jetstar A320 services taking over from Qantas’ B737-800 services from December 2008; and
Perth-Jakarta, with three Jetstar A320 return services per week replacing the existing three Qantas B737-800 services from December 2008.
Mr Dixon said Qantas would close its pilot base in Cairns, with around 40 Cairns-based pilots returning to Sydney or other bases.
“Qantas will maintain its existing cabin crew base in Cairns to service domestic operations, and Jetstar will establish a new base for pilots and cabin crew in Perth from October,” he said.
Mr Dixon said that as a result of the international schedule changes, there would be a small number of job losses in Cairns and Japan. These were in addition to those flagged in last week's announcement, which were expected to be in the low hundreds, and would also be managed initially on a voluntary basis.
He said in addition to the Asian flight changes, Qantas would reduce its B747-400 Sydney-Los Angeles services from 17 to 15 per week, following the commencement of A380 flights on the route at the end of the year.
“Using the larger A380s on a spread of our USA services will enable us to grow Melbourne-Los Angeles capacity and maintain our total current capacity levels from Australia to the USA.”
Mr Dixon said Qantas had done everything possible to mitigate the effects of the schedule changes we have been forced to make.
“We will continue to work with individual markets and look for opportunities as conditions improve to address capacity issues and reinstate services where and when we can.”
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Qantas and Jetstar Reduce/Adjust Japan Flying
Qantas will be shutting the Cairns base and handing over Cairns-Narita to Jetstar. Jetstar will be withdrawing from KL and Osaka/Nagoya to give them the jets.
http://www.qantas.com.au/regions/dyn...008/jun08/3771
http://www.qantas.com.au/regions/dyn...008/jun08/3771
Last edited by Bankstown; 5th Jun 2008 at 07:36.
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QF mainline seems to have lost the most out of this. JQ will pick up some of the routes and reshuffle/downgrade Vietnam services from A330 to A320, plus starting Perth to Bali A320 services later in the year to replace the QF 737's.
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so the next question....
what happens to all those people who have been issued with upgrades in the next 12 months??? Are they to be shafted? Or is it possible that just maybe allocations knew of this before they issued the slots?
Would be a pretty low act to get peoples hopes up, and then smash them down 1 week later.....
what happens to all those people who have been issued with upgrades in the next 12 months??? Are they to be shafted? Or is it possible that just maybe allocations knew of this before they issued the slots?
Would be a pretty low act to get peoples hopes up, and then smash them down 1 week later.....
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Mr Dixon said Qantas would close its pilot base in Cairns, with around 40 Cairns-based pilots returning to Sydney or other bases.
So will they have to move to Sydney?
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The only yield is your premium passenger..It is the only passenger that returns sufficient margin over your fixed cost. Add to that te fuel cost (of which J* use the same) and you see it don't work.
I was in Japan last week speaking to Senior people in the know who said..."people would rather drive to Narita and fly fullservice than fly J* from Osaka...
So naturally pulling your premium product from a market and replacing it with your so called low cost alternative will only hasten the demise..
FOG you clown
I was in Japan last week speaking to Senior people in the know who said..."people would rather drive to Narita and fly fullservice than fly J* from Osaka...
So naturally pulling your premium product from a market and replacing it with your so called low cost alternative will only hasten the demise..
FOG you clown
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What is really happening....
Geoff pulls back QF services
Terry Tourism shouts woe is us
Hero Geoff reinstates services
But the only way he can do this is via a low cost model
Tiny little Al, has a 320 on the ground, lots of newly imported Yarpie crew,
Me Geoff, Me Geoff.......
Geoff pulls back QF services
Terry Tourism shouts woe is us
Hero Geoff reinstates services
But the only way he can do this is via a low cost model
Tiny little Al, has a 320 on the ground, lots of newly imported Yarpie crew,
Me Geoff, Me Geoff.......
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QF Insider
With respect.....
If you did study airline economics....or indeed any finance discipline where the allocation of joint fixed costs was covered....then you have forgotten a lot. If you didn't study it....please do so and don't post again on this subject til you do. You are making yourself look a tad foolish and ranting about how you are the only one marching in step on this subject is just vaguely embarrassing.
Just because you don't understand something don't make it untrue. I racked up about 15,000 hr on all sorts of jets and never did quite work out how they fly. But they do.
Just a thought.......
With respect.....
If you did study airline economics....or indeed any finance discipline where the allocation of joint fixed costs was covered....then you have forgotten a lot. If you didn't study it....please do so and don't post again on this subject til you do. You are making yourself look a tad foolish and ranting about how you are the only one marching in step on this subject is just vaguely embarrassing.
Just because you don't understand something don't make it untrue. I racked up about 15,000 hr on all sorts of jets and never did quite work out how they fly. But they do.
Just a thought.......
Assigned leave
It's hardly surprising that Jet* need all those 457 visas if they're going to be expanding that quickly....
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The transformation from Qantas to Jetstar is almost complete....Must be almost time to repaint the Orange Stars with Kangaroos....
QF management must feel lucky they have these excuses ie. fuel, to mask their plan to transfer QF to Jetstar....
QF management must feel lucky they have these excuses ie. fuel, to mask their plan to transfer QF to Jetstar....
Something not at all clear from this announcement: Is the JQ A320 Pilot Base remaining in Cairns? When they say QF Pilot Base being closed, do they actually mean those who were with Australian on the B767 and stayed?
Confused. (As usual)
Confused. (As usual)
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CNS Base
It's the Qantas Base (ie. the Ex Australian guys). But as far as I am aware, the base was always going to close. QF wanted to close it when they shut down Australian, but the QLD Government stepped in as they were concerned about the effect that all the houses going on the market at once would do to the local economy.
So for the guys up there, this is no great shock. However, I'm not up there, so It's only what I've heard.
Haven't got a clue about J*.
So for the guys up there, this is no great shock. However, I'm not up there, so It's only what I've heard.
Haven't got a clue about J*.
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I would have thought the J* Cairns base will only get bigger. All part of the QF to JQ transformation process.
When it's all done - get rid of that hideous orange paint scheme and repaint them all with the red rat again.
This must be very unsettling for the QF mainline guys. I just hope it's not shuffling deck chairs on the Titanic.
When it's all done - get rid of that hideous orange paint scheme and repaint them all with the red rat again.
This must be very unsettling for the QF mainline guys. I just hope it's not shuffling deck chairs on the Titanic.
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Dissapointing that JQ has dropped KUL, well there goes that commitment for a base down the drain. Very Exiting news for Toyko services, especially ex OOL.
Lets hope that the new "Stopover" for Vietnam isn't a red-eye service
Lets hope that the new "Stopover" for Vietnam isn't a red-eye service
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So J* A330's:
Pull out of CNS-OSAKA-NAGOYA & SYD-KUL & SYD-HO CHI MINH
& Redeploy on
CNS-TOKYO & OOL-TOKYO & SYD-OOL-OSAKA
And
Redeploy some A320's from the domestic network to:
Ho Chi Minh via DRW (replacing the A330's)
Between PER & DPS &
PER & Jakarta (freeing up QF 737's)
So have I interpretted this correctly?
Softening of the domestic market for J* see's some A320 take up some 737-800 flying to DPS & Jakarta freeing up the 737-800 for redployment back in the premium domestic scene. Meanwhile the 767 is withdrawing from CNS-TOKYO to also add more capacity back to the premium domestic market as well.
While the J* A330 capacity is switched from Ho Chi Minh & KUL to Japan to cover the 767 withdrawn services.
Meanwhile there are 5 less QF A330 services per week to Japan & the aircraft are redployed on domestic flights to PER in readiness of the retirement of the classics.
Are all the aircraft still all flying but just to different places?
Pull out of CNS-OSAKA-NAGOYA & SYD-KUL & SYD-HO CHI MINH
& Redeploy on
CNS-TOKYO & OOL-TOKYO & SYD-OOL-OSAKA
And
Redeploy some A320's from the domestic network to:
Ho Chi Minh via DRW (replacing the A330's)
Between PER & DPS &
PER & Jakarta (freeing up QF 737's)
So have I interpretted this correctly?
Softening of the domestic market for J* see's some A320 take up some 737-800 flying to DPS & Jakarta freeing up the 737-800 for redployment back in the premium domestic scene. Meanwhile the 767 is withdrawing from CNS-TOKYO to also add more capacity back to the premium domestic market as well.
While the J* A330 capacity is switched from Ho Chi Minh & KUL to Japan to cover the 767 withdrawn services.
Meanwhile there are 5 less QF A330 services per week to Japan & the aircraft are redployed on domestic flights to PER in readiness of the retirement of the classics.
Are all the aircraft still all flying but just to different places?