Tag Archives: Jetstar Airways

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 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:

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

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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)

QANTAS Airways goes double daily to Tokyo, Japan

QANTAS Airways (Sydney) added a significant expansion of its presence in Japan with the launch of double daily services between Australia and Tokyo this weekend.

QANTAS flight QF25 departed from Sydney to Tokyo’s Haneda Airport on July 31, followed by the departure of QF61 from Brisbane to Narita Airport yesterday (August 1).

QANTAS’ Brisbane-Narita launch flights will be operated by the airline’s refurbished Airbus A330 aircraft, with lie-flat seats in Business, brand new Economy seats and new inflight entertainment.

The refit of these aircraft, which takes one month each, is being done at QANTAS’ heavy maintenance facility in Brisbane. These aircraft are being introduced progressively onto Asian routes.

To celebrate the launch of the new Japan services, customers onboard flights departing to Narita and Haneda and in Qantas International Lounges in Sydney and Brisbane will be treated to Japanese-inspired menus for the first week of August, including Tuna Tataki Nigiri in Business, and Green Tea flavoured Kit Kats in Premium Economy and Economy.

The launch of double daily QANTAS flights to Tokyo follows Jetstar’s introduction of its Boeing 787 Dreamliner on the Melbourne-Narita route earlier this month, increasing the available seats between the two cities by 20 per cent over the next year. The upgrade from Airbus A330 aircraft to the higher capacity Boeing 787 will be complemented by an increase in flights from four to six per week December to March to meet growing demand for flights between Melbourne and Japan in the peak season.

Copyright Photo: Rob Finlayson/AirlinersGallery.com. QANTAS Airways Airbus A330-303 VH-QPA (msn 553) with a special “80 Years QANTAS International” emblem lands at Brisbane.

QANTAS Airways aircraft slide show: AG Airline Slide Show

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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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Eastern Australia Airlines to operate Jetstar Airways-branded Bombardier Q300s in New Zealand

Jetstar Airways (Melbourne) has announced plans to start flying to regional destinations in New Zealand starting in December*.

Jetstar logo (large)

The new services will be operated by a fleet of five 50-seat Bombardier DHC-8-300 (Q300) Dash 8 turboprop aircraft and are expected to create at least 100 new jobs for pilots, cabin crew, and ground crew.

The services are expected to operate to at least four regional destinations initially, with some of those under consideration being Hamilton, Rotorua, New Plymouth, Napier and Palmerston North in the North Island and Nelson and Invercargill in the South Island. These will connect with one or more of Jetstar’s current domestic destinations.

Regional fares will go on sale in September with first flights taking off in early December, in time for the busy summer and holiday season.

QANTAS logo (large)

Jetstar Airways, which is fully owned by QANTAS Airways, 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 240 domestic and 100 international flights a week.

Jetstar has crew bases in Auckland and Christchurch and provides employment for over 400 pilots, cabin crew, engineers and ground crew around the country.

QANTAS Link logo

The Jetstar-branded regional services, which will be marketed and managed by Jetstar, will be operated by QANTAS Link. Under this arrangement, QANTAS-owned Eastern Australia Airlines (Sydney), which has operated Q200 and Q300 aircraft in Australia for QANTAS Link for over 15 years, will manage the aircraft operations.

Eastern Australia logo

* Services are subject to regulatory approval.

Copyright Photo: Rob Finlayson/AirlinersGallery.com. Eastern Australia Airlines operates both the pictured Bombardier (de Havilland Canada) DHC-8-200 Dash 8 and the DHC-8-300 (Q300) aircraft types on regional routes in Australia under the QANTAS Link brand. DHC-8-201 VH-TQG (msn 430) waits for the next flight at the gate at Hobart, Tasmania.

Jetstar Airways aircraft slide show: AG Airline Slide Show

Video: QANTAS Link operations.

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