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Qantas strategic changes from H2 2014

by on February 27, 2014
 

Amongst the Qantas H1 results announcement sit some details that make for uncomfortable reading for Qantas passengers.

Qantas will increase their 737 utilisation domestically, and will keep the A330 focus on coast-to-coast and peak triangle (BNE-MEL-SYD) services. Here’s what they added:

  • A330-200s will be freed up to enter the Qantas International fleet as replacement aircraft, helping to accelerate the retirement of older Boeing 747 aircraft.
  • All six of Qantas International’s non-reconfigured B747s will be retired ahead of schedule, by the second half of FY16.  Nine reconfigured B747s with A380-standard interiors will remain.
  • Qantas’ final two B737-400s have been retired this month and all B767s will be retired by the third quarter of FY15, resulting in cost and passenger benefits from fleet simplification.
  • Qantas International’s eight remaining A380 orders will be deferred, with an ongoing review of delivery dates to meet potential future requirements.  Schedule changes will allow maximum use of Qantas’ current 12 A380s.
  • The final three of 14 Jetstar B787-8s on firm order will be deferred.
  • Jetstar’s A320 order book has been restructured.

Internationally, the Perth-Singapore route will be cut altogether, a disaster for Qantas in WA. East coast to Singapore will be down-gauged to A330s in Q1 2015, presumably to adjust for overcapacity and low yields on those routes.

The Melbourne to London A380 service will be retimed to make better use of the plane, a welcome relief for those who don’t always appreciate the current departure timings of QF9/10. This will free up a whole A380 for deployment elsewhere, with no decisions made yet about where that will be.

Thousands of jobs will go, and a pay freeze will continue though the CEO’s own pay package will shrink by 36%.

In happier news, rumours of a wet-lease of 4 A380s to Turkish Airlines have proved unfounded, as have rumours of cuts to the London services. A lot of these decisions make sense, however the enormity of 5,000 job losses will take time to set in.

Here at Economy Traveller, our thoughts are with the employees and families of Qantas employees whose lives are about to change.

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