Tag Archives: QANTAS Group

QANTAS Airways announces new improvements to its international route network as a result of the Emirates relation

QANTAS Airways (Sydney) today announced a series of improvements to its international network, as part of a phased approach aimed at delivering the best offering of any airline flying between Australia and Asia.

The improvements – the first of which take effect from March 31, 2013 – will be rolled out in four phases and go towards the QANTAS Group strategy of ‘growing with Asia’. The planned phases are:

– Stronger links to the key hubs of Singapore and Hong Kong (better frequency and timings as well as increased dedicated capacity)
– Enhanced customer experience (improvements to cabin, in-flight entertainment, lounges)
– Expanded network within Asia through local partners (such as Japan Airlines, China Eastern, Jet Airways, Cathay Pacific and Malaysia Airlines)
– Investigating an increase in destinations to Asia using the QANTAS Group’s Boeing 787-9 options from 2016, coinciding with the turnaround of QANTAS International (direct destinations under consideration include Beijing, Seoul, Mumbai, Delhi and Tokyo-Haneda).

The new QANTAS lounge in Singapore will open on March 31 and the new Hong Kong First lounge is scheduled to open this September. A total of $9 million has been invested in the upgrades.

QANTAS is also examining a refresh of its international A330 fleet to include a lie-flat bed in Business Class.

Chief Executive Officer of QANTAS International, Simon Hickey, said Asia remained a key pillar of the goal to be the best for global travellers.

“Through a combination of QANTAS, Jetstar and our partners we aim to provide the best travel options between Australia and Asia, all linked to one of the world’s leading frequent flyer programs,” said Mr Hickey.

“Our first step has been to restructure existing services to Asia now that they are no longer tied to onward links to Europe. The number of dedicated seats on QANTAS services to Hong Kong and Singapore is increasing significantly, because capacity previously set aside for customers going to Europe via these hubs can be freed up.

“The joint QANTAS-Emirates network into Asia gives our customers a fresh set of options, including double daily services to Singapore from Melbourne, Sydney and Brisbane. The maturing Jetstar network gives travellers another set of alternatives once they land in Asia,” Mr Hickey added.

Key among the changes in the first phase of improving the Asia network, which will apply from today for travel after March 31, are:

– Better access to the key Asian hubs of Hong Kong and Singapore, with a dedicated capacity increase of around 10 per cent and 40 per cent respectively on the Qantas network plus extended capacity on the QANTAS-Emirates network
– Earlier arrival times into Hong Kong, Bangkok and Singapore, with flights brought forward by up to three hours to increase the number of onward connections
– A new destination – Kuala Lumpur – available to QANTAS customers via the combined QANTAS-Emirates network.

The QANTAS-Emirates partnership remains subject to government and regulatory approval.

As part of schedule changes made today, QANTAS is reducing its Perth-Singapore services to one per day and ceasing its Adelaide-Singapore and Perth-Hong Kong services. However, QANTAS will increase its Brisbane-Hong Kong service from four per week to seven and add four additional Sydney-Singapore services per week (increasing to daily from June).

Qantas has also brought forward the end date for its loss-making Frankfurt services by six months to April 15, 2013.

Passengers impacted by schedule changes will be contacted by the airline and offered alternative services.

ROUTE	CHANGE	STARTS	Old dept/ arrival times (24hrs)	New dept/ arrival times (24hrs)
QANTAS SERVICES
Melbourne–Hong Kong	QF29 Melbourne-Hong Kong retimed to better connect to onward flights within Asia.	31 March 2013	1330 / 2100	0935 / 1710
Sydney–Hong Kong	QF127 Sydney-Hong Kong retimed. Services reduce from 11 per week to 7 per week (removal of QF87/88 Sydney-Hong Kong).	31 March 2013	1040 / 1745	0955 / 1725
Brisbane–Hong Kong	QF97/98 Brisbane-Hong Kong increased from four flights per week to five in May and to daily in June. All services retimed from 31 March 2013 to better connect to onward flights within Asia.	6 May 2013; 24 June 2013	1100 / 1755	1020 / 1725
Perth–Hong Kong	QF67/68 Perth-Hong Kong ceases to operate.	31 March 2013
Perth–Singapore	QF77/78 Perth-Singapore services move from double daily to daily. QF77 retimed to better connect to onward flights in Asia, and the return of QF78 arriving back in Perth on the same day at 2320.	15 April 2013	1155 / 1725	0950 / 1520
Brisbane–Singapore	QF51 Brisbane-Singapore retimed to better connect with onward flights.	15 April 2013	1340 / 1925	1020 / 1605
Sydney–Bangkok	QF23 Sydney-Bangkok retimed to better connect to onward flights within Asia.	31 March 2013	1215 / 1850	0940 / 1635
Sydney–Singapore*	Four new services per week, timed to better connect to onward flights within Asia, increasing to daily from June.	31 March 2013; 24 June 2013		0940 / 1600
Melbourne–Singapore*	Dedicated Singapore service QF35, seven times a week. Timed to connect better to onward flights within Asia.	15 April 2013	1340 / 1920	1000 / 1555
Adelaide-Singapore	QF81/82 Adelaide-Singapore ceases to operate.	14 April 2013	–	–
JOINT QANTAS-EMIRATES SERVICES**				Dept/ Arrival time
Melbourne–Singapore	Qantas codeshare on EK405 daily service from Melbourne to Singapore			1800 / 2350
Brisbane–Singapore	Qantas codeshare on EK433 daily service from Brisbane to Singapore			0230 / 0815
Sydney–Bangkok	Qantas codeshare on EK419 daily service from Sydney to Bangkok			1845 / 0110
Melbourne–Kuala Lumpur	Qantas codeshare on EK409 daily service from Melbourne to Kuala Lumpur			0240 / 0845

*As announced on 4 October 2012
** Subject to regulatory approval

QANTAS Airways:

QANTAS cancels 35 Boeing 787-9 Dreamliners

QANTAS Group (QANTAS Airways and Jetstar Airways) (Sydney) has restructured its fleet plans which includes the cancellation of 35 Boeing 787-9 Dreamliners after reporting its financial results for its fiscal year.

The issued the following statement:

“The Qantas Group announced it would restructure its Boeing 787 aircraft delivery schedule as part of the five-year Qantas International turnaround plan.

There is no change to the Group’s plans for the Boeing 787-8 aircraft. Deliveries of 15 Boeing 787-8s to Jetstar Airways will continue as planned, with the first aircraft to arrive in the second half of 2013. This will enable the transfer of Airbus A330 aircraft from Jetstar to Qantas Domestic, and the eventual retirement of Qantas’ Boeing 767 fleet.

Fifty Boeing 787-9 options and purchase rights will be retained and brought forward by almost two years, available for delivery from 2016. However, firm commitments for 35 Boeing 787-9s will be cancelled. The restructure means a two-year delay in the Group’s first Boeing 787-9 delivery.

The changes will result in a reduction in capital expenditure commitments that would equal US$8.5 billion at list prices.

Qantas Group CEO Alan Joyce said the changes were consistent with the goals of the Group’s broader
strategy.

“Qantas continues to practice disciplined capital management and, in the context of returning Qantas International to profit, this is a prudent decision,” Mr Joyce said. “The Boeing 787 is an excellent aircraft and remains an important part of our future. However, circumstances have changed significantly since our order several years ago. It is vital that we allocate capital carefully across all parts of the Group.

“Qantas has always maintained flexibility in its fleet plan and made changes when required. We have now substantially completed our fleet renewal program for the Qantas Group, with 114 new aircraft delivered over the past four years. Our average scheduled passenger fleet age is 8.3 years, the lowest since privatisation and highly competitive by international standards.

“We have 12 A380s in service across our long-haul network and the reconfiguration of nine Boeing 747-400s will be complete by late 2012. Boeing 737-800s will continue to enter the Qantas Domestic fleet as part of the Group’s existing fleet plan, while Airbus A330s will transfer from Jetstar as Boeing 787s are delivered. And Jetstar’s domestic and pan-Asian fleet requirements will be met over the long-term by our existing A320 order book and the arrival of Boeing 787-8s.

“Fifty Boeing 787-9s will remain available to the Group from 2016, in line with the timeframe of the Qantas International turnaround plan.”

On the financial side the group issued this report (all amounts in Australian dollars):

Qantas Group today (August 23) announced Underlying Profit Before Tax of $95 million for the year ended 30 June 2012.

The Group’s portfolio of businesses faced a challenging year – however, it is well-positioned for a strong,sustainable future.

The result was materially impacted by record high fuel costs ($4.3 billion, up $645 million) and industrial action culminating in the grounding of the Qantas fleet ($194 million). Operating conditions for the global aviation industry deteriorated significantly during the year, affecting most major airline businesses.

There were also one-off costs of $398 million, which are not included in Underlying PBT, as the Group initiated a turnaround plan for Qantas’ international network and addressed its legacy cost base.

As a result, the Group reported a Statutory Loss After Tax of $244 million for the year.

All parts of the Group were profitable with the exception of Qantas’ international network. Jetstar and Qantas Frequent Flyer achieved record results² and Qantas’ domestic operations outperformed the prior year. The Group holds a leading position in the Australian domestic market while Jetstar continues to expand in Asia, including through the successful launch of Jetstar Japan.

In line with previous market guidance, Qantas’ international network made an Underlying EBIT loss of approximately $450 million and Qantas and Jetstar’s domestic networks together delivered Underlying EBIT of approximately $600 million.

Qantas Group CEO Alan Joyce said the Group had launched the biggest transformation program since
privatisation in extremely challenging circumstances.

“Qantas has been through an exceptional period in its history over the past 12 months,” Mr Joyce said.

“Over the course of the year we made significant progress in advancing the Group’s strategy – building on our strong domestic business and frequent flyer program and growing Jetstar across Asia. Qantas’ international turnaround plan is on track and set for improvement in 2012/13.

“We are now coming off a period of high capital expenditure that has given us the youngest fleet since Qantas became a public company in 1995 – an average age of 8.3 years for passenger aircraft⁴. Our Boeing 747 reconfiguration program is nearly complete, with the aircraft receiving outstanding customer feedback, and from this October we will also upgrade our domestic Boeing 767 fleet.

“We will continue to invest capital efficiently as we target greater competitiveness and customer satisfaction to deliver a stronger Qantas Group.”

The Group improved cash flow during the year, achieving a free cash flow positive position of $206 million in the second half of 2011/12. Cash held at 30 June 2012 was $3.4 billion with access to a $300 million undrawn standby facility, and the Group retained an investment-grade credit rating. Ten narrow-body aircraft were purchased with cash, meaning the Group has added 18 new unencumbered aircraft over the past two years.

During the year the Group took steps to reduce planned 2012/2013 capital expenditure to $1.9 billion, and expenditure will remain at that level through 2013/2014.

Fleet renewal is substantially complete after the delivery of 114 new aircraft over the past four years and the Group will now shift its focus to debt reduction. The Group’s future fleet delivery profile has been restructured with a reduction in potential commitments for the Boeing 787-9 from 85 to 50 (announced separately today), available from 2016.

Segment performance

Qantas reported an Underlying EBIT loss of $21 million, down $249 million compared with 2010/11, reflecting the poor performance of the international network. The Qantas segment result was also severely impacted by record fuel costs and industrial action.

Customer satisfaction in the domestic market is at its highest level in over three years and the Group continues to invest in Qantas’ domestic network, product and service. It remains the airline of choice for corporate travellers with strong double-digit corporate revenue growth and an estimated 84 per cent share of the domestic corporate travel market.

Significant progress was made in Qantas’ international turnaround plan launched in August 2011. Qantas increased capacity to its Dallas/Fort Worth and Santiago hubs, reconfigured seven out of a planned nine Boeing 747 aircraft with award-winning A380 interiors, strengthened alliance relationships and withdrew from major loss-making routes. Major business transformation initiatives, including heavy maintenance consolidation, were commenced during the year.

The benefits from these initiatives have started to flow and will deliver annual savings of approximately $300 million when all measures announced to date have been implemented.

Jetstar reported record Underlying EBIT of $203 million, up $34 million or 20 per cent on the prior year. Ancillary revenues grew by 27 per cent and unit costs were reduced to record lows. Domestically, Jetstar continues to hold a clear leadership position in the price-sensitive market.

Despite challenging operating conditions, Jetstar achieved capacity and passenger growth in all markets. Jetstar Japan was established during the year and commenced operations in July 2012, five months ahead of schedule, complementing airlines based in Singapore (Jetstar Asia) and Vietnam (Jetstar Pacific) – with Jetstar Hong Kong to be added in 2013, subject to regulatory approval. Each of these investments draws on Jetstar’s well-established brand, world-class ancillary revenue model and strong local partners.

Qantas Frequent Flyer achieved a record result, with Normalised Underlying EBIT of $231 million, up 14 per cent compared with 2010/11. The continued expansion and enhancement of the program saw billings increase by 14 per cent to $1.2 billion. Membership now stands at 8.6 million members, with over 500 program partners.

The acquisition of Wishlist Holdings Ltd, establishment of a new membership tier (Platinum One) and addition of major new partners such as Optus all contributed to Qantas Frequent Flyer’s strong performance.

Qantas Freight’s Underlying EBIT was $45 million, down $17 million compared with the prior year. The result reflects a broader downturn in global air freight markets, plus adverse fuel price and foreign exchange impacts that were only partially offset by yield improvements.

Outlook

The Group’s operating environment and economic outlook for the first half of 2012/2013 remains challenging, volatile and dependent on a number of uncontrollable external factors.

Group capacity is expected to increase by 3-4 per cent in the first half of 2012/2013 compared to the first half of 2011/2012, while maintaining flexibility.

The Group aims to maintain a profit-maximising 65 per cent domestic market share. Given current market conditions, Group domestic capacity is expected to increase by 9-11 per cent in the first half of 2012/2013 compared to the first half of 2011/2012. However, the Group has significant flexibility to adjust domestic capacity should current market conditions change.

Underlying fuel costs (excluding carbon tax) for the Group are expected to be approximately $2.3 billion⁵ in the first half of 2012/2013 compared to $2.2 billion in the first half of 2011/2012, due to higher forward market jet fuel prices and increased flying.

No Group profit guidance is provided at this time due to the high degree of volatility and uncertainty in global economic conditions, fuel prices, exchange rates, as well as the major transformational change agenda underway.

¹ Underlying Profit Before Tax (Underlying PBT) is a non-statutory measure and is the primary measure used by the Group’s chief operating decision making bodies for the purposes of assessing the financial performance of the Group. All line items in the Media Release are reported on an Underlying basis. A detailed reconciliation of Statutory and Underlying PBT is included in the Review of Operations.

² Jetstar result based on Underlying EBIT. Qantas Frequent Flyer result based on Normalised EBIT, which is Underlying EBIT normalised for prior period changes in accounting estimates. Refer to the Review of Operations for a reconciliation of Normalised EBIT to Underlying EBIT.

³ Free cash flow – Operating cash flows less investing cash flows. Free cash flow is a measure of the amount of operating cash flows that are available (i.e. after investing activities) to fund reductions in net debt or payments to shareholders.

⁴ Average fleet age of the Group’s scheduled passenger fleet based on manufacturing dates.

⁵ As at 15 August 2012.

Copyright Photo: John Adlard. The Boeing 767-300 ERs are now likely to be operated longer under this revised plan. Boeing 767-338 ER VH-OGD (msn 24407) arrives at Sydney.

QANTAS Airways:

Jetstar Airways:

QANTAS Airways lowers its profit forecast, the stock tumbles

QANTAS Airways (Sydney) issued the following statement lowering its profit estimate. Here is the full statement:

“The Qantas Group expects to report an underlying profit before tax (PBT) in the range of $50-$100 million for the financial year ending 30 June 2012.

The forecast result reflects the recent deterioration in global aviation operating conditions driven by the European economic crisis, the Group’s highest ever jet fuel bill, and substantial capacity increases in the domestic market that have reduced yields.

Qantas International is expected to report an earnings before interest and tax (EBIT) loss of over $450 million in 2011/12 compared with $216 million in 2010/11. The structural issues in the business have been compounded by the impact of global economic factors – including increased fuel costs, the high Australian dollar and weakness in the UK and Europe market – as well as the $100 million one-off cost of industrial action.

In the domestic market, both Qantas and Jetstar will deliver improved results compared to the previous year and combined the two flying brands will deliver an EBIT of over $600 million. This strong result is despite industrial action, record fuel costs and aggressive competitor capacity increases. Domestic customer satisfaction with Qantas is at its highest sustained level since 2004 and the Group continues to deliver the best network, frequency and on-time performance in the market. Qantas remains the preferred airline for corporate travel and, through QantasLink and Network Aviation, is capitalising on the strength of the resources industry and the fly-in fly-out market.

The resilience of the Qantas Group is underpinned by the strong and improving performances of Qantas Domestic, Jetstar and Qantas Frequent Flyer.

As a result of the weakening revenue environment, Group yield (excluding foreign exchange) for the second half of 2011/12 is expected to increase by 0.5% to 1.0% which is down on the previous estimate of 1.5% to 2.5%. Also included in the 2011/12 forecast is the impact of declining bond yields since mid-March 2012, which has had an adverse non-cash effect of approximately $50 million on certain provisions. Group underlying fuel costs are expected to reach $4.4 billion, an increase of approximately $700 million on the prior year.

Qantas Group CEO Alan Joyce said this tough and worsening environment reinforced the importance of the Qantas International five-year transformation plan announced in August 2011.

“We have taken decisive action to mitigate losses in Qantas International by withdrawing from lossmaking routes, reducing capital investment, and transforming Qantas engineering. The introduction of a new Qantas Group structure with dedicated CEOs for Qantas International and Qantas Domestic will bring further rigour to our business.”

“We have also doubled capacity on the successful Dallas/Fort Worth route and launched new services to the South American gateway of Santiago. We are improving our flying economics and lifting customer satisfaction through our Boeing 747 reconfiguration program.

“We are also attacking costs and allocating aircraft and capital efficiently. Over $300 million in annual benefits have been identified from the changes we are making and we will continue to seek improvements in all parts of the business.

“While there are one-off costs associated with the transformation program – in the range of $370-$380 million for the full year 2011/12 more than half of which are non-cash items – these costs will be outweighed by the long-term benefits of increased efficiency and competitiveness.

“We continue to practice disciplined financial management. We have announced capital expenditure reductions totalling $900 million for 2012/13, bringing the total for the year down to $1.9 billion. Capital expenditure in 2013/14 will be at this level or lower.

“We remain focused on returning Qantas International to profitability in 2014 and for Qantas International and Domestic combined to exceed their cost of capital on a sustainable basis within five years of August 2011.”

Mr Joyce said that with a cash balance of more than $3 billion, an undrawn standby facility of $300 million, 16 new unencumbered A320/B737 aircraft added to the balance sheet in the past two years and the flexibility to reinstate or further reduce capital investment as appropriate, the Qantas Group remains in a strong funding position.

“The Group has funding in place for the majority of its 2012/13 aircraft deliveries and intends to fund the remainder of its future capital commitments from operating cashflow, cash reserves and available debt,” he said.

The International Air Transport Association has downgraded its forecast for airline profits in 2012 to $3 billion, a margin of just 0.5%, and has said that a further economic downturn could see a net loss for the sector.

The 2011/12 profit guidance is based on current market conditions and assumes no material change in foreign exchange rates and the long term bond rate.”

QANTAS Airways:

QANTAS operates a biofuel flight today

QANTAS Airways’ (Sydney) today operated its first biofuel flight. Flight QF 1121 departed Sydney at 10:20 am (1020) this morning and arrived in Adelaide at 12:05 pm (1205). The return flight, QF 1120, departed Adelaide at 1:35 pm (1335), arriving in Sydney at 4:00 pm (1600).

On April 19, Jetstar flights JQ 705 and JQ 706 from Melbourne to Hobart and back will also be powered by the same fuel type used in today’s QF flights, underlining the QANTAS Group’s commitment to sustainable aviation fuel.

Supplied by SkyNRG, the fuel type is a 50:50 blend of biofuel and conventional jet fuel certified for use in commercial aviation. Its “life cycle” carbon footprint is around 60 percent smaller than that of conventional jet fuel.

The company also announced today that it will conduct a feasibility study into the potential for an Australian sustainable aviation fuel industry, backed by funding from the Australian Government.

The Honorable Martin Ferguson MP, Minister for Resources, Energy and Tourism, announced the Australian government’s support for the study this morning. Government funding for the study will be allocated under the Emerging Renewables Program, while Shell will provide technical support. The study will commence in May.

QANTAS Slide Show: CLICK HERE

The Fiji government revises its foreign ownership laws to limit QANTAS Airways’ control of Air Pacific

Air Pacific (Nadi) is maintaining normal operations after the Fiji government revised its foreign ownership rules to corral and limit the control of QANTAS Airways (Sydney) over the carrier.

The government issued the following statement:

“To ensure compliance with international law and bilateral requirements governing air service rights granted to national airlines that fly to other nations, the Republic of Fiji has updated its ownership and control criteria for airline companies registered in Fiji through the passage of the Civil Aviation (Ownership and Control of National Airlines) Decree 2012.

The Civil Aviation Decree necessitates that all Fijian-registered air carrier companies providing international service must satisfy these international requirements and be under the “substantial ownership and effective control” of a citizen of Fiji, meaning:

The Government of Fiji or any institution of the State;
An individual who is a citizen of Fiji;
A partnership each of whose partners is an individual who is a citizen of Fiji; or,
A corporation or association of which at least 51 percent of the voting interest is owned and controlled by persons who are citizens of Fiji, at least two thirds of the board of directors and any committee are citizens of Fiji, and such corporation or association is under actual and effective control of citizens of Fiji.

Currently, Air Pacific and Pacific Sun are Fiji’s only international airlines, and they are majority-owned by Fijians. However, since 1998, minority and non-Fijian shareholder QANTAS Airways has maintained effective control of these airlines through supermajority and veto rights over significant areas of the company, including the appointment of the Chairman, Deputy Chairman, annual operating budget, any expenditures, new air routes, variations to Air Service schedules, management appointments, employee incentive schemes including bonuses, and numerous other key areas of oversight, control and decision-making.

While QANTAS currently has veto power over most areas of Air Pacific’s operations and business decisions, QANTAS also competes directly against Air Pacific through its wholly-owned low cost carrier subsidiary, Jetstar Airways, which flies overseas visitors to Fiji from Sydney.

Concerns about ownership and control requirements are not unusual in international aviation law. Indeed, just last week QANTAS called for the Australian International Air Services Commission (IASC) to undertake a comprehensive public review of Virgin Australia’s ownership and control position to determine if Virgin complies with the ownership and effective control provisions of Australia’s aviation laws.

In the European Union and United Kingdom, air carriers must be owned and effectively controlled by Member States and/or nationals of Member States. Similarly, in New Zealand international airlines must be owned and effectively controlled by New Zealand nationals.

With this law, the Bainimarama Government has now corrected the activities of prior Fijian governments, which allowed foreign citizens to control Fiji’s national airlines. Since Air Pacific is responsible for carrying more than 70 percent of visitors to Fiji, its success is critical to the health of the Fijian economy and the livelihoods of Fijians.”

Air Pacific issued the following statement:

“The Fiji Civil Aviation Decree 2012 is a shareholder matter. For our customers and our team here, it’s business as usual as Air Pacific, our board, our business partners, and our great team of professionals continue to work together to revitalise, modernise, and ensure the future success of our airline.

Air Pacific’s mission remains the same: to be the preferred airline of the South Pacific and the country we are privileged to call home.”

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Jetstar Hong Kong to start operations in mid-2013 with three Airbus A320s

China Eastern Airlines (Shanghai) and the QANTAS Group (Sydney), which owns the Jetstar Group, have entered a new strategic alliance to bring Asia’s leading low fares airline model to China with the creation of Jetstar Hong Kong.

According to both parties, “Jetstar Hong Kong will combine the partners’ local knowledge, networks and successful low cost carrier model to service short haul routes in Asia, including Greater China, Japan, South Korea and South East Asia. It will be the first low fares airline based in Hong Kong.”

Subject to regulatory approval Jetstar Hong Kong services will start in 2013 with a fleet of three Airbus A320s, growing to 18 A320s by 2015.

Jetstar Hong Kong is underpinned by a total maximum capitalization of up to $198 million. The shareholding percentage in Jetstar Hong Kong will be equally held by China Eastern Airlines and QANTAS Group, which will be equal partners in the Joint Venture. The maximum exposure for each partner is $99 million over a three year period.

In other news, Jetstar Japan will welcome Century Tokyo Leasing Corporation as its fourth shareholder in the new low fares airline venture.

The transaction was concluded when Mitsubishi Corporation transfered half of its current 33.3% voting rights stock in Jetstar Japan to Century Tokyo Leasing Corporation on March 27, 2012.

The new partnership reinforces Jetstar Japan’s financial foundation by adding an additional stockholder and creating a strategic operational tie-up ahead of the start of services on July 3, 2012. This transaction will not affect the total capital or capital reserves.

With this transaction, holding ratios in Jetstar Japan will be Jetstar Group with 33.3%, Japan Airlines Company, Ltd. with 33.3%, Mitsubishi Corporation with 16.7% and Century Tokyo Leasing Corporation with 16.7% on a voting rights basis.

QANTAS Group announces a half year profit of A$202 million

QANTAS Airways Airbus A380-842 VH-OQE (msn 027) LAX, originally uploaded by Airliners Gallery.

QANTAS Group (Sydney) issued the following financial statement (all amounts in Australian dollars):

“The Qantas Group has announced underlying profit before tax of $202 million for the half-year ended December 31, 2011, a decrease of $215 million compared with the prior corresponding period. Statutory profit before tax was $58 million.

The result reflects the $194 million financial impact of industrial action during the first half, as well as increased fuel costs compared with the prior corresponding period. Total fuel costs in the half were $2.2 billion, up $444 million (or 26 per cent).

The Group also today outlined measures that respond to global economic conditions and the structural challenges facing Qantas, including the European finance crisis, the changing Australian economy and the need to increase efficiency and competitiveness. These steps will position the Group for a strong, sustainable future and build long-term shareholder value.

They include a reduction in capital expenditure of $700 million over 2011/12 and 2012/13; a review of Qantas’ heavy maintenance footprint in Australia; and changes to Qantas’ catering and engineering operations.

Qantas’ underlying EBIT in the first half was $66 million, compared with $165 million in the prior corresponding period.

Jetstar achieved record underlying EBIT of $147 million, up $4 million on last year’s first-half earnings.

The following network changes will be made in order to adjust capacity to market conditions and route performance:

1. Withdrawal from the Singapore-Mumbai and Auckland-Los Angeles routes, effective 6 May 2012. This is in addition to previously-announced withdrawals from the Hong Kong-London and Bangkok-London routes, effective March 2012.

2. Aircraft changes on the following international and domestic routes: Sydney-Bangkok (Boeing 747 replaced with Airbus A330 from 10 June), Sydney-Perth (Boeing 747 replaced with Airbus A330 on certain services from 6 May) and Melbourne-Perth (additional A330 services added from 6 May).

3. Capacity increases on the Los Angeles-New York route from 6 May (Airbus A330 replaced with Boeing 747) and Sydney-Tokyo route from 10 June (one Airbus A330 service per week replaced with a Boeing 747 service, resulting in daily Boeing 747 services).

4. Early retirement of two further Boeing 747 aircraft (in addition to the four early B747 retirements announced in August 2011).”

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QANTAS Group reports fiscal year profit of $260 million (US)

QANTAS Airways Boeing 747-438 VH-OJO (msn 25544) (Go Qantas Wallabies) SYD (John Adlard), originally uploaded by Airliners Gallery.

The QANTAS Group (Sydney) announced Underlying Profit Before Tax (Underlying PBT) of A$552 million for the fiscal financial year ending on June 30, 2011.

Read the full report from QANTAS: CLICK HERE

QANTAS Airways is facing a possible strike by its engineers.

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