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http://www.theage.com.au/news/news/q...654109671.html
http://www.qantas.com.au/regions/dyn...08/may08/Q3768
Reflecting moves by several US airlines to ground some aircraft rather than fly on uneconomic routes, Qantas has announced its plans to exit several low-yielding routes, including the Sydney-Gold Coast route in order to cut costs.
The airline said the domestic cuts equate to the grounding of six jets.
Within a week, Qantas said it will follow through with extra cuts to its international network.
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Qantas plans to "ground" two Boeing 767s, retire one ageing 737 and speed up the retirement of its fuel-guzzling fleet of four 747-300s.
The airline said the domestic cuts equate to the grounding of six jets.
Within a week, Qantas said it will follow through with extra cuts to its international network.
...
Qantas plans to "ground" two Boeing 767s, retire one ageing 737 and speed up the retirement of its fuel-guzzling fleet of four 747-300s.
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.
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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.
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"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."
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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.
* 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.
...
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.
...
"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.
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