Category Archives: Jestar Airways

QANTAS Group makes drastic cuts leaving only two Airbus A380s flying

The QANTAS Group has announced further cuts to its international flying, reducing capacity by almost a quarter for the next six months.

The latest cuts follow the spread of the Coronavirus into Europe and North America over the past fortnight, as well as its continued spread through Asia, which has resulted in a sudden and significant drop in forward travel demand.

These additional changes will bring the total international capacity reduction for QANTAS and Jetstar from 5 percent to 23 percent versus the same time last year and extend these cuts until mid-September 2020.

The biggest reductions remain focussed on Asia (now down 31 percent compared with the same period last year). Capacity reductions to the United States (down 19 percent), the UK (down 17 percent) and Trans-Tasman (down 10 percent) will also be made in line with forward booking trends.

CHANGES TO SERVICES

Rather than exit routes altogether, QANTAS will use smaller aircraft and reduce the frequency of flights to maintain overall connectivity.

This approach results in eight of the airline’s largest aircraft, the Airbus A380, grounded until mid-September. A further two A380s are undergoing scheduled heavy maintenance and cabin upgrades, leaving two of its A380s flying.

In response to strong customer demand for the direct Perth-London service, the existing Sydney-Singapore-London return service (QF1 and QF2) will be temporarily re-routed to become a Sydney-Perth-London service from April 20, 2020.

The start of QANTAS’ new Brisbane-Chicago route will be delayed from April 15 to mid-September.

Jetstar will make significant cuts to its international network, including suspending flights to Bangkok and reducing flights from Australia to Vietnam and Japan by almost half. Jetstar’s daily Gold Coast to Seoul flight was suspended last week.

(See table below for more detail of international network changes.)

Domestically, QANTAS and Jetstar capacity reductions will be increased from 3 per cent to 5 per cent[1] through to mid-September 2020, in line with broader economic conditions.

In total, this is the equivalent of grounding 38 Qantas and Jetstar aircraft[2] across the international and domestic network. The Group’s total capacity reduction changes from 4 per cent (announced on February 20) to 17 percent for the last quarter of FY20.

Given the reduced flying across the QANTAS Group fleet, maintenance work will be brought forward where possible to make best use of this time.

IMPACT ON FINANCIAL PERFORMANCE

The Group is taking decisive action to mitigate the significant adverse impact of Coronavirus on demand, including longer range capacity cuts that improve the business’ ability to reduce costs. However, given the dynamic and uncertain nature of this situation, it is not possible to provide meaningful guidance at this time on the size of that impact on Group earnings for the remainder of FY20.

In line with its Financial Framework the Group is in a strong position, with low debt levels and a long debt maturity profile, $1.9 billion in cash plus a further $1 billion in undrawn facilities and $4.9 billion in unencumbered assets.

To help maintain this position in the face of current uncertainty, the Board has decided to cancel the off-market buyback announced in February, which will preserve $150 million in cash. The interim dividend of 13.5 cents per share will still be paid on 9 April.

COST REDUCTION MEASURES

In addition to cutting capacity, a number of cost reduction measures will be triggered across the QANTAS Group, including:

  • Annual management bonuses set to zero for FY20.
  • For the remainder of FY20:
    • QANTAS Chairman will take no fees.
    • Group CEO will take no salary.
    • QANTAS Board will take a 30 percent reduction in fees.
    • Group Executive Management will take a 30 percent pay cut.
  • Freeze of all non-essential recruitment and consultancy work.
  • Asking all QANTAS and Jetstar employees to take paid or unpaid leave in light of reduced flying activity.

A material drop in fuel price has provided a significant cost benefit in addition to the saving from lower consumption. The Group’s total fuel cost is now expected to be $3.74b[3] (excluding the benefit of capacity reductions compared with the same time last year) with limited participation to further falls in Brent crude prices.

CEO COMMENTARY

Announcing the changes, QANTAS Group CEO Alan Joyce, said: “In the past fortnight we’ve seen a sharp drop in bookings on our international network as the global coronavirus spread continues.

“We expect lower demand to continue for the next several months, so rather than taking a piecemeal approach we’re cutting capacity out to mid-September. This improves our ability to reduce costs as well as giving more certainty to the market, customers and our people.

“We retain the flexibility to cut further or to put capacity back in as this situation develops.

“The QANTAS Group is a strong business in a challenging environment. We have a robust balance sheet, low debt levels and most of our profit comes from the domestic market. We’re in a good position to ride this out, but we need to take steps to maintain this strength.

“When revenue falls you need to cut costs, and reducing the amount of flying we do is the best way for us to do that.

“Less flying means less work for our people, but we know coronavirus will pass and we want to avoid job losses wherever possible. We’re asking our people to use their paid leave and, if they can, consider taking some unpaid leave given we’re flying a lot less.

“Annual management bonuses have been set to zero and the Group Executive team will take a significant pay cut for the rest of this financial year.

“It’s hard to predict how long this situation will last, which is why we’re moving now to make sure we remain well positioned. But we know it will pass, and we’ll be well positioned to take advantage of opportunities when it does.”

ADVICE FOR CUSTOMERS

QANTAS and Jetstar will contact customers affected by these changes in the coming week. Customers who booked via a travel agent (including online travel agents) will be contacted by their agent rather than the airline.

Typically, customers flying internationally will be offered an alternative flight via another capital city or a partner airline, or an alternative day. Disruption to domestic passengers is expected to be minimal given the continued high frequency on most routes.

The latest information will be published on Qantas and Jetstar websites. Customers are encouraged to check this before calling the airline.

To provide customers with greater flexibility and confidence when they book, Qantas and Jetstar will waive change fees for new international bookings made from today until the end of March, if customers change their travel plans[4]. This applies to travel commencing up to June 30, 2020 and is limited to one free change per customer. Customers will need to pay any fare difference.

SUMMARY OF QANTAS GROUP NETWORK CHANGES

Route Change Effective dates (until mid-Sept 2020)
Asia
Sydney-Tokyo (Haneda) B747 replaced by smaller A330 30 March
Melbourne-Singapore  – 7 return flights per week cancelled (QF 37/38)

– B787 replaced by larger A330 on 7 return flights per week (QF 35/36)

– 20 April– 4 May
North America 
Brisbane-Chicago Route launch postponed Was to start 15 April
Brisbane-San Francisco Route suspended (3 return flights per week) 18 April
Sydney-San Francisco B787 replaced by larger B747 18 April
Melbourne-San Francisco Route suspended (4 return flights per week) 18 April
Sydney-Dallas/Fort Worth A380 replaced by smaller B787 20 April
Melbourne-Los Angeles A380 replaced by smaller B787 1 June
Sydney-Vancouver Seasonal service suspended (3 return flights per week) June and July only
United Kingdom
Sydney-London (Heathrow) – Flights to operate via Perth (instead of Singapore)then non-stop to London.

– Perth-London to become double daily as a result.

– A380 replaced by smaller B787

20 April
South America
Sydney-Santiago Delaying planned B787 introduction and continuing with B747 1 August

Note: The suspension of the A380 and First Class from Singapore routes will see the QANTAS First Lounge in Singapore close temporarily, with customers instead invited to use the adjacent QANTAS Business Lounge.

Note: QANTAS Boeing 787 has approx. 250 less seats than an A380.  

 

QANTAS – Extension of previously announced cancellations

(Until mid-Sept 2020 unless stated)

Route Change
Sydney-Shanghai Route continues to be suspended until at least mid-July (7 flights per week)(sole route to mainland China)
Sydney-Hong Kong Reduced from 14 to 7 return flights per week
Melbourne-Hong Kong Reduced from 7 to 4 return flights per week (1 additional cancellation per week from previously announced cuts)
Brisbane-Hong Kong Reduced from 7 to 3 return flights per week (1 additional cancellation per week from previously announced cuts)

 Note: Further capacity reductions will also be made on flights to Japan and New Zealand, with other Asian routes under evaluation.

 

Jetstar Airways – Summary of New Changes

Routes Change Effective date (until end June but may be extended)
Asia
Melbourne-Bangkok Route suspended 1 May
Sydney/Melbourne-Ho Chi Minh Flights reduced by over 50 per cent 1 May
Japan routes Flights reduced by almost 40 per cent 20 May
Brisbane-Bali Minor flight reductions 1 May

Note: Further capacity reductions will also be made on flights to New Zealand, with other Asian routes are under evaluation.

 

Jetstar Airlines in Asia – Summary of changes

Jetstar Asia (based in Singapore) will cut capacity by almost 40 percent with reductions in frequencies across the network. Singapore to Taipei and Osaka routes will be suspended.

Jetstar Japan has suspended its international services to Hong Kong, Taipei and Shanghai until at least the end of May and will reduce flights to Manila. Further reductions will be made to its Japanese domestic network.

Jetstar Pacific (based in Vietnam) has also suspended all international routes to the end of April, with the exception of Ho Chi Minh-Bangkok where flights have been halved. Further reductions are being made to its Vietnamese domestic network.

[1] Versus Q4 FY19.

[2] Includes seven Jetstar Asia (Singapore) aircraft and nine aircraft across Jetstar Japan and Jetstar Pacific (Vietnam).

[3] Compared with estimate of $3.85b at 20 February 2020.

[4] Changes need to be made at least three days before the date of travel.

 

QANTAS Airways aircraft photo gallery:

Jetstar Airways unveils a logo jet promoting Northern Tasmania

Jetstar Airways has made this announcement:

Launceston Airport has led the way in a campaign that promotes Northern Tasmania to thousands of domestic travelers each day by commissioning spectacular new Jetstar Airbus A320 aircraft (VH-VQK) livery.

On social media:

 

The livery, which features Northern Tasmania’s top tourism attractions such as Cradle Mountain, Wineglass Bay, Cataract Gorge and the Bay of Fires, was unveiled today on JQ737 flying between Melbourne and Launceston airports.

Scenic images on the aircraft exterior have also been replicated throughout the plane, on tray tables and overhead cabin storage. A bespoke 32-page Northern Tasmania travel guide has also been developed for in-flight reading, full of local recommendations and tips.

To celebrate the livery reveal, passengers flying on the plane’s first trip to Launceston were treated to local produce and gifts on arrival at the airport.

Launceston Airport General Manager Paul Hodgen said the aircraft created an unrivalled opportunity to promote key local tourism attractions.

“I’m thrilled to showcase Launceston and the region in such a grand way, highlighting the many natural attractions that are in close proximity to Launceston Airport,” said Mr Hodgen.

“The campaign is part of our strategy to encourage domestic travellers to fly into Launceston as the tourism gateway to Tasmania, before they continue on to explore the rest of the state, putting Launceston Airport firmly “on the map”.

“Whether you’re a foodie, thrill-seeker or interested in the arts, our city and region appeals to a wide range of markets and we are so pleased to be able to spread the word about Launceston across the Jetstar Australia network.”

Nigel Fanning, Jetstar Head of Product said the airline is excited to work with Launceston Airport and Tourism Northern Tasmania to promote the city and the state with this great livery.

“We’ve been flying to Launceston for almost 15 years. Last year, we carried around 800,000 customers to and from Tasmania with around two thirds of those fares sold for under $100”

Jetstar operates more flights to Tasmania than any other airline, with close to 50 direct return-services from Launceston to Melbourne, Brisbane and Sydney a week.

The Launceston-themed Jetstar Airbus A320 will be operating until the end of July.

Emirates and Jetstar Airways to expand their codeshare agreement

Emirates (Dubai) and Jetstar Airways (Melbourne) have announced the expansion of their codeshare and frequent flyer relationship, to 30 routes across the Asia Pacific region providing more choice to Emirates customers.

From October 26, 2014*, Emirates will grow its codeshare on Jetstar to include Jetstar Airways services between Melbourne and Ayers Rock (Uluru), Christchurch to Wellington in New Zealand and three new destinations in south-east Asia from Jetstar Asia’s hub in Singapore.
The new codeshare services from Singapore will connect Emirates passengers to Penang in Malaysia, Yangon in Myanmar and Medan in Indonesia.

The additional destinations complement the current 25 routes announced in February this year.

Effective immediately, Skywards members can now also earn Skywards Miles when they book economy Starter Plus, economy Starter Max or Business Max fares on international routes with Jetstar Airways, Jetstar Asia, Jetstar Japan and Valuair, as well as domestic routes within Australia and New Zealand if they connect to an international flight.

All Emirates’ passengers on Jetstar flights will receive boarding passes on check-in at their first international departure point for connecting international service.

*subject to government approval

Top Copyright Photo: Keith Burton/AirlinersGallery.com. Emirates Boeing 777-31H A6-EMM (msn 29062) arrives in London (Heathrow).

Emirates: AG Slide Show

Jetstar Airways: AG Slide Show

Bottom Copyright Photo: John Adlard/AirlinersGallery.com. Jetstar Airways’ seventh Boeing 787-8 Dreamliner, the pictured VH-VKH (msn 36233) was delivered on August 14, 2014.

Jetstar Airways announces new Brisbane-Honolulu flights starting on December 15

Jetstar Airways (Australia) (Melbourne) has announced new nonstop service between Brisbane and Honolulu starting on December 15, 2014.

The route will be operated by Airbus A330 aircraft up to three times a week during the peak season with two weekly services in the off peak.

The new Honolulu route will be the second wide body service from Brisbane following the start of nonstop services to Bali later this month to be operated by the Boeing 787 Dreamliner.

Flights will depart from Brisbane on Tuesdays and Fridays with services operating from Honolulu on Mondays and Thursdays.

The third service for peak season will operate on a Sunday. The route will eventually be operated by the Boeing 787 Dreamliner as Jetstar continues to take delivery of more aircraft.

Copyright Photo: John Adlard/AirlinersGallery.com. Airbus A330-202 VH-EBA (msn 508) taxies at Sydney.

Jetstar Airways: AG Slide Show

 

Jetstar Airways takes delivery of its first Boeing 787

Jetstar Airways (Melbourne) and Boeing (Chicago) celebrated the delivery of the carrier’s first 787 today, which is also the first 787 for Australia.

Jetstar’s 787 Dreamliner departed Monday morning from Boeing’s Everett, Washington delivery center en route to Melbourne, Australia where the plane will be greeted by airline employees and special guests.

Jetstar, the QANTAS Group’s low-cost brand, plans to introduce the 787 first on domestic routes and then its international network. The airline has a total of 14 787 on order and expects to fly an all-787 long-haul fleet by 2015.

Copyright Photo: Nick Dean/AirlinersGallery.com. The pictured 787-8 VH-VKA (msn 36227) at Paine Field near Everett is the first 787 for Jetstar.

Jetstar Airways: AG Slide Show