Category Archives: Jetstar Airways

QANTAS and Jetstar to suspend scheduled international flights, all A380s. 747s and Dreamliners grounded

QANTAS Group has made this announcement:

  • QANTAS and Jetstar to suspend scheduled international flights from late March, following latest government travel advice; some ongoing ad hoc services possible.
  • 60 percent reduction to domestic flights, focused on cutting frequency.
  • Two-thirds of employees to be temporarily stood down to preserve as many jobs as possible longer term.
  • Payment of $201 million shareholder dividend deferred until September 2020.

The QANTAS Group has outlined the customer and employee impact of a huge drop in travel demand triggered by the public health response to the Coronavirus crisis.

Earlier this week, cuts to 90 percent of international flying and about 60 per cent of domestic flying were announced by QANTAS and Jetstar. With the Federal Government now recommending against all overseas travel from Australia, regularly scheduled international flights will continue until late March to assist with repatriation and will then be suspended until at least the end of May 2020. As the national carrier, Qantas is in ongoing discussions with the Federal Government about continuation of some strategic links.

More than 150 aircraft will be temporarily grounded, including all of QANTAS’ A380s, 747s and 787-9s and Jetstar’s 787-8s.  Discussions are progressing with airports and government about parking for these aircraft.

Essential domestic, regional and freight connections will be maintained as much as possible.

QANTAS’ fleet of freighters will continue to be fully utilised. Some domestic passenger aircraft will also be used for freight-only flights to replace lost capacity from regular scheduled services. There is no impact on Qantas Loyalty’s operations as a result of today’s announcement.

INTERNATIONAL NETWORK CHANGES

The QANTAS Group is making the following changes:

  • All regularly scheduled QANTAS and Jetstar international flights from Australia will be suspended from end March until at least end May 2020. Some flights may continue in order to maintain key links, based on ongoing discussions with the Federal Government.
  • Jetstar Asia (Singapore) will suspend all flights from March 23 to at least April 15, 2020.
  • Jetstar Japan has suspended international flights and cut domestic flying.
  • Jetstar Pacific (Vietnam) has suspended international flights and will significantly cut domestic flying.

DOMESTIC NETWORK CHANGES

The Group will maintain connectivity to almost all Australian domestic and regional destinations that QANTAS, QANTAS Link and Jetstar currently operate to. The 60 percent reduction in capacity will come mostly from a significant reduction in flight frequency, but also route suspensions and postponing a number of new route launches.

(The route-by-route detail of these changes can be found here.)

PEOPLE IMPACT

In order to preserve as many jobs as possible longer term, QANTAS and Jetstar will stand down the majority of their 30,000 employees until at least the end of May 2020.

During the stand down, employees will be able to draw down on annual and long service leave and additional support mechanisms will be introduced, including leave at half pay and early access to long service leave. Employees with low leave balances at the start of the stand down will be able to access up to four weeks’ leave in advance of earning it. Unfortunately, periods of leave without pay for some employees are inevitable.

Senior Group Management Executives and the Board have increased their salary reductions from 30 per cent to 100 per cent until at least the end of this financial year, joining the Chairman and Group CEO in taking no pay. Annual management bonuses have also been cancelled.

SHAREHOLDER IMPACT

Given the current extraordinary circumstances, a decision has been made to defer payment of the shareholder dividend announced on 20 February from 9 April until 1 September 2020. This is in addition to the cancellation of the off-market buy back, previously announced.

CEO COMMENTARY

Comments from Qantas Group CEO Alan Joyce:

“The efforts to contain the spread of Coronavirus have led to a huge drop in travel demand, the likes of which we have never seen before. This is having a devastating impact on all airlines.

“We’re in a strong financial position right now, but our wages bill is more than $4 billion a year. With the huge drop in revenue we’re facing, we have to make difficult decisions to guarantee the future of the national carrier.

“The reality is we’ll have 150 aircraft on the ground and sadly there’s no work for most of our people. Rather than lose these highly skilled employees who we’ll need when this crisis passes, we are instead standing down two-thirds of our 30,000 employees until at least the end of May.”

“Most of our people will be using various types of paid leave during this time, and we’ll have a number of support options in place. We’re also talking to our partners like Woolworths about temporary job opportunities for our people.

“This is a very hard set of circumstances for our people, as it is for lots of parts of the community right now.

“No airline in the world is immune to this, with the world’s leading carriers making deep cuts to flying schedules and jobs. Our strong balance sheet means we’ve entered this crisis in better shape than most and we’re taking action to make sure we can ride this out.

“Since this crisis started, there has been overwhelming support from our customers. That gives me even more confidence that we’ll get through this,” added Mr Joyce.

CUSTOMER INFORMATION

Customer contact centres are currently experiencing long wait times from people seeking to change their travel plans as a result of the Coronavirus. To help manage the demand we ask that customers only call if they have travel within the next 48 hours.

To avoid further inconvenience, we’re converting all bookings on cancelled flights to a travel credit, which can be used anywhere on our network.  Affected customers will be contacted directly from next Monday.  Any customers travelling before the end of May who wish to change their booking are also eligible to receive a travel credit instead.

If flights were booked through a travel agency or third-party website (e.g. Webjet, Booking.com), customers will need to contact them directly to make changes to their booking.

QANTAS Airways aircraft photo gallery:

QANTAS Group cuts international flying by 90%, grounds around 150 aircraft

QANTAS Group has made this announcement:

As a result of significant falls in travel demand due to Coronavirus, and new government restrictions across multiple jurisdictions in recent days, QANTAS Airways and Jetstar Airways will make further and much larger cuts to domestic and international flying schedules.

To be phased in from the end of March 2020 onwards:

  • Total Group International capacity will be cut by around 90 percent until at least the end of May 2020. This is up from a 23 per cent reduction for the fourth quarter of FY20 announced last week and largely reflects the demand impact of severe quarantine requirements on people’s ability to travel overseas.
  • Total Group Domestic capacity will be cut by around 60 percent until at least the end of May 2020. This is a major increase from the 5 per cent reduction for the fourth quarter of FY20 and reflects a rapid decline in forward travel demand due to government containment measures, corporate travel bans and a general pullback from everyday activities across the community.
  • This represents the grounding of around 150 aircraft, including almost all of the Group’s wide-body fleet.
  • Previously announced cuts in place from end-May through to mid-September remain in place and are likely to be increased, depending on demand.

The route-by-route detail of these changes across QANTAS and Jetstar is currently being worked through and will be announced in coming days.

Despite the deep cuts, the national carrier’s critical role in transporting people and goods on key international, domestic, routes will be maintained.  This includes using some domestic passenger aircraft for freight-only flights to replace lost capacity from regular scheduled services. QANTAS’ fleet of freighters will continue to be fully utilized.

PEOPLE IMPACT

The precipitous decline in demand and resulting cuts to flying mean that the QANTAS Group is confronted with a significant labor surplus across its operations. Travel demand is unlikely to rebound for weeks or possibly months and the impact of this will be felt across the entire workforce of 30,000 people.

The QANTAS Group is working to manage this impact as much as possible, including through the use of paid and unpaid leave. This will be in addition to measures already announced, including three months of no pay for the CEO and Chairman, significant pay cuts for Group Executive Management and Board members, and cancelling of annual bonuses and an off-market buy back.

CUSTOMER IMPACT

The Group has issued a wide-ranging booking waiver for customers wanting to suspend their travel plans.

Customers with existing bookings on any domestic or international flight until May 31, 2020, who no longer wish to travel, can cancel their flight and retain the value of the booking as a travel credit voucher. This needs to be processed by March 31, 2020.

Customers who make a new domestic or international booking and later decide they no longer wish to travel, can cancel their flight and retain the value of the booking as a QANTAS travel credit or Jetstar travel voucher. This applies to bookings made from March 10, 2020 until March 31, 2020 for travel before May 31, 2020.

QANTAS Airways aircraft photo gallery:

QANTAS and Jetstar cut flights in response to Coronavirus

The QANTAS Group has today announced temporary reductions to flights across Asia in response to a drop in demand due to Coronavirus.

The actions were announced as part of the Group’s Half Year Financial Results, where the net profit impact of Coronavirus was estimated at between $100 million to $150 million for FY20 – a figure softened by lower fuel prices.

Reductions of around 5 percent will be made to QANTAS and Jetstar’s flying between Australia and New Zealand.

There is no change to other key parts of the QANTAS International network, such as the US and UK, which remain unaffected.

Reductions of around 2 percent of total Group domestic Australian flying in the second half are being made to reflect market demand.

Below is a summary of the network changes.

David Gray /Getty Images for Qantas

QANTAS INTERNATIONAL

QANTAS International will cut 16 percent of Asia capacity until at least the end of May, impacting flights from Australia to mainland China, Hong Kong and Singapore.

  • Sydney-Shanghai (the airline’s sole route to mainland China) – will remain suspended
  • Sydney-Hong Kong – reduced from 14 return flights per week to 7
  • Brisbane-Hong Kong – reduced from 7 return flights per week to 4
  • Melbourne-Hong Kong – reduced from 7 return flights per week to 5
  • Melbourne-Singapore – flights to be operated by Boeing 787s instead of larger Airbus 380s (approx. 250 less seats per flight)

QANTAS will reduce flights across the Tasman by 6 per cent with cancellations on Sydney-Auckland, Melbourne-Auckland and Brisbane-Christchurch. Jetstar will reduce its Tasman flying by 5 percent.

JETSTAR GROUP

Jetstar Group will cut its capacity to Asia by 14 percent until at least the end of May, impacting flights from Australia to Japan and Thailand, and intra-Asia flights.

  • Cairns-Tokyo (Narita), Cairns-Osaka, Gold Coast-Tokyo (Narita) and Melbourne & Sydney-Phuket will each be reduced by up to two return flights per week.
  • Each of the Jetstar airlines in Asia – Jetstar Asia (Singapore), Jetstar Japan and Jetstar Pacific (Vietnam) – have suspended flights to mainland China and are reducing flights across the region. In particular, Jetstar Asia is reducing total seats by 15 per cent.
  • The Group is looking at transferring an A320 aircraft from Jetstar to QantasLink to meet increased demand from the resources sector in Western Australia.

DOMESTIC AUSTRALIA

QANTAS and Jetstar will reduce total domestic capacity by 2.3 percent for the second half of the financial year to better match demand.

Most of these adjustments have already been published with the balance to be made over the coming days. Cancellations are largely focussed on travel between major capital cities at off-peak times to minimise customer impact.

Demand for regional services is largely stable, meaning that recently announced routes will start as planned, including Sydney-Ballina (Byron Bay), Sydney-Mildura, Tamworth-Brisbane and Sydney-Orange as well as additional flights from Adelaide to Kangaroo Island and from Sydney to Bendigo. Jetstar’s new Melbourne-Busselton (Margaret River) flights are also unaffected.

CEO COMMENTARY

QANTAS Group CEO Alan Joyce said the airlines were taking action now to limit exposure to softening markets.

“Coronavirus resulted in the suspension of our flights to mainland China and we’re now seeing some secondary impacts with weaker demand on Hong Kong, Singapore and to a lesser extent Japan. Other key routes, like the US and UK, haven’t been impacted.

“We’ve also seen some domestic demand weakness emerging, so we’re adjusting Qantas and Jetstar’s capacity in the second half.

“What’s important is that we have flexibility in how we respond to Coronavirus and how we maintain our strategic position more broadly. We can extend how long the cuts are in place, we can deepen them or we can add seats back in if the demand is there. This is an evolving situation that we’re monitoring closely.

“We know demand into Asia will rebound. And we’ll be ready to ramp back up when it does.

“These past few months have been extraordinarily difficult for the tourism industry and we’ve tried to minimise the impact of our capacity reductions as much as possible. About half of QANTAS’ domestic cancellations are between Sydney, Melbourne and Brisbane, and we’re avoiding any route exits.

“The capacity we’re taking out is the equivalent of grounding 18 aircraft across QANTAS and Jetstar until the end of May, which in turn impacts about 700 full time roles. To avoid job losses we’ll be using leave balances across our workforce of 30,000 and freezing recruitment to help ride this out. We’ll also take advantage of having some aircraft on the ground by bringing forward planned maintenance,” added Mr Joyce.

[1] For travel between 28 February 2020 and 14 February 2021. See qantas.com for full details after 12:00pm (AEDT) 20 February 2020.

QANTAS Airways aircraft photo gallery:

Air France-KLM Group steps up cooperation with QANTAS Group

Air France-KLM released this statement:

Loyalty Programs Collaborate to Enhance Customer Value Proposition

After the resumption of codeshare cooperation in 2018, offering best-in-class solutions to fly between Europe and Australia via Singapore and Hong Kong, the Air France-KLM Group and Qantas Group have continued working on further cooperation opportunities for the benefit of their respective customers.

Starting December 9, 2019 members of Flying Blue, the loyalty program used by the airlines of the Air France-KLM Group, can earn1 miles and XP (Experience Points) as well as spend miles on Qantas flights.

Flying Blue elite members will also have access to additional benefits such as priority airport services and additional checked baggage allowance when traveling on Qantas.

New Codeshare with Jetstar

By the end of December, both Air France and KLM plan to launch a codeshare cooperation with Jetstar Airways and Jetstar Asia Airways, two airlines which are part of the Qantas Group portfolio, connecting respectively in Denpasar and Singapore, thus expanding customer travel options to Southeast Asia and Australia.

Air France and KLM customers will benefit from a seamless travel experience with single ticket itineraries and through-checked baggage.

Under this agreement, Air France and KLM customers will have access to a wider range of destinations in Southeast Asia. Connecting in Singapore from Amsterdam or Paris, Air France and KLM will place their code on 12 additional destinations2 operated by Jetstar Asia Airways: Da Nang (Vietnam), Ho Chi Minh City (Vietnam), Denpasar (Indonesia), Medan (Indonesia), Surabaya (Indonesia), Phnom Penh (Cambodia), Siem Reap (Cambodia), Kula Lumpur (Malaysia), Penang (Malaysia), Phuket (Thailand), Yangon (Myanmar), and Darwin (Australia).

During the winter 2019 season, KLM plans to implement codeshares with Jetstar Airways providing itineraries beyond its Denpasar flight to four destinations in Australia: Adelaide, Melbourne, Perth, and Sydney2.

Also expected during December 2019, Air France, KLM and Qantas will extend their codeshare to flights connecting in Bangkok, on top of the existing codeshare via Singapore and Hong Kong, and providing a third route to connect Amsterdam and Paris with Sydney.

Additionally, the two airline groups continue to explore opportunities like potential cooperation with airport lounges.

(1) Earning of miles and XP is only possible on Qantas operated flights that are marketed by Air France, KLM or Qantas
(2) All subject to governmental authorizations

Jetstar Airways aircraft photo gallery:

QANTAS backs the Airbus A321XLR with an agreement for 36 aircraft

QANTAS Airways Limited is backing Airbus’ new extended range A321XLR with an agreement covering 36 aircraft. This includes the conversion of 26 existing A320neo Family orders plus a new firm order for 10 A321XLRs.

The aircraft will allow the QANTAS Group, which includes low-cost carrier Jetstar, to improve its network and fleet flexibility to better serve point-to-point markets in Australia, Asia and the South Pacific.

Images: Airbus.

Jetstar introduces its new Airbus A321neo LR

Jetstar Airways will receive 18 new fuel efficient aircraft between 2020 and 2022.

The longer range means direct flights from East Coast of Australia to Bali, not previously possible with A320 aircraft.

Eastern Australia Airlines to start Jetstar services in New Zealand on December 1, routes announced

Jetstar Airways (Melbourne) has unveiled its new regional network in New Zealand, launching low fares on five routes between Nelson, Napier, New Plymouth, Palmerston North, Auckland and Wellington.

Nelson-Auckland and Napier-Auckland flights will take off on December 1, in time for the busy tourism season in both popular holiday destinations.

New Plymouth-Auckland, Palmerston North-Auckland and Nelson-Wellington flights will follow early next year, with services scheduled to begin on February 1, 2016.

 

Jetstar first announced plans for a regional network in June and has been considering proposals from locations across the country for its initial expansion.

 

 

Jetstar’s regional network will add more than 670,000 new seats a year to the domestic market, a significant increase on the airline’s current domestic jet seat capacity of over 2.6 million seats annually.

First flights each day will take off from regional ports, with crew and aircraft positioned overnight in each of the new destinations. Recruiting has commenced for the 100 new jobs the regional expansion will create, with positions available for pilots, cabin crew, and ground crew.

Jetstar logo (large)

The Jetstar-branded regional services, which will be marketed and managed by Jetstar, will be operated by QantasLink. Under this arrangement, Qantas-owned Eastern Australia Airlines (Sydney), which has operated Bombardier Q300 aircraft in Australia for QantasLink for over 15 years, will manage the aircraft operations.

Eastern Australia logo

Jetstar launched trans-Tasman flights in 2005 and established domestic operations in New Zealand in June 2009. The low cost carrier’s fleet of nine Airbus A320 aircraft operate up to up to 250 domestic and 100 international flights a week. Jetstar has over 400 team members in New Zealand.

Copyright Photo: Rob Finlayson/AirlinersGallery.com. Jetstar-branded, operated by Eastern Australia Airlines, Bombardier DHC-8-315 (Q300) VH-TQM (msn 604) at Brisbane was the first of five Q300s to be repainted.

Jetstar Airways aircraft slide show: AG Airline Slide Show

AG WAN-Powered by AG

Jetstar Airways has the first Bombardier Q300 for regional services in New Zealand painted

Jetstar (New Zealand)-Eastern Australia DHC-8-300 VH-TQM (03)(Nose) TSV (Jetstar)(LRW)

Jetstar Airways (Melbourne) has issued this statement and photos:

Jetstar logo (large)

The first of five Jetstar Bombardier Q300 turbo-prop aircraft to be painted in Jetstar livery rolled out of the paint shop in Townsville this week in preparation for regional services in New Zealand later this year.

The aircraft were formerly used by QANTAS Link and will be the first turbo-props to fly under the Jetstar brand.

In addition to the new livery, the Q300s are being given an interior refresh to match the Jetstar onboard product.

Further details of the new services, including the four regional destinations they’ll be flying to in New Zealand, will be announced in a few weeks.

Regional New Zealand flights on the Q300s will be operated by Eastern Australia Airlines for Jetstar Airways.

Eastern Australia logo

Copyright Photos: Jetstar Airways. Eastern Australia Airlines Bombardier DHC-8-315 (Q300) was rolled out of the paint shop at Townsville in the new look.

Jetstar aircraft slide show: AG Airline Slide Show

Jetstar (New Zealand)-Eastern Australia DHC-8-300 VH-TQM (03)(Grd) TSV (Jetstar)(LRW)

Jetstar Airways is planning to retire the last Airbus A330-200 in September

Jetstar Airways (Melbourne) is planning to phase out and retire the last Airbus A330-200 in September. According to Airline Rouge, currently (subject to change) the last scheduled route with the A330 will be on September 24 between Honolulu and Brisbane (arriving on September 25) as flight JQ 006. There are no scheduled A330 flights after this date.

The Airbus A330-200s have been replaced with newer Boeing 787 Dreamliners.

Copyright Photo: Micheil Keegan/AirlinersGallery.com. Airbus A330-202 VH-EBB (msn 522) approaches the runway at Sydney.

Jetstar Airways aircraft slide show: AG Airline Slide Show

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