27th February Big Qantas announcement

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Strategy Update has just been released:

Key points:
• $2 billion cost reduction, including 5,000 jobs
• More than 50 aircraft to be deferred or sold
• $1 billion capital expenditure reduction
• Core investment in customer service to continue
 
Joyce says the result is "Unacceptable". Well you're the skipper, you should fall on your sword!
 
Fleet and Network

After a detailed review of network and schedules, the Qantas Group will re-assign aircraft to better match demand, defer aircraft orders, dispose of aircraft, increase fleet utilisation and exit under-performing routes.
• Qantas Domestic will increase utilisation of narrow-body aircraft, allowing Airbus A330 aircraft in the domestic market to concentrate solely on East-West services and peak services on the Sydney-Melbourne-Brisbane triangle.
• A330-200s will be freed up to enter the Qantas International fleet as replacement aircraft, helping to accelerate the retirement of older Boeing 747 aircraft.
• All six of Qantas International’s non-reconfigured B747s will be retired ahead of schedule, by the second half of FY16. Nine reconfigured B747s with A380-standard interiors will remain.
• Qantas’ final two B737-400s have been retired this month and all B767s will be retired by the third quarter of FY15, resulting in cost and passenger benefits from fleet simplification.
• Qantas International’s eight remaining A380 orders will be deferred, with an ongoing review of delivery dates to meet potential future requirements. Schedule changes will allow maximum use of Qantas’ current 12 A380s.
• The final three of 14 Jetstar B787-8s on firm order will be deferred.
• Jetstar’s A320 order book has been restructured.
In total, more than 50 aircraft will be deferred or sold.
 
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And the important part from the strategy document

Fleet and Network
After a detailed review of network and schedules, the Qantas Group will re-assign aircraft to better match demand, defer aircraft orders, dispose of aircraft, increase fleet utilisation and exit under-performing routes.

Qantas Domestic will increase utilisation of narrow-body aircraft, allowing Airbus A330 aircraft in the domestic market to concentrate solely on East-West services and peak services on the Sydney-Melbourne-Brisbane triangle.
A330-200s will be freed up to enter the Qantas International fleet as replacement aircraft, helping to accelerate the retirement of older Boeing 747 aircraft.
All six of Qantas International’s non-reconfigured B747s will be retired ahead of schedule, by the second half of FY16. Nine reconfigured B747s with A380-standard interiors will remain.
Qantas’ final two B737-400s have been retired this month and all B767s will be retired by the third quarter of FY15, resulting in cost and passenger benefits from fleet simplification.
Qantas International’s eight remaining A380 orders will be deferred, with an ongoing review of delivery dates to meet potential future requirements. Schedule changes will allow maximum use of Qantas’ current 12 A380s.
The final three of 14 Jetstar B787-8s on firm order will be deferred.
Jetstar’s A320 order book has been restructured.
In total, more than 50 aircraft will be deferred or sold.

By FY16, the Group’s passenger fleet will have been simplified from 11 aircraft types to seven aircraft
types, with an average age of eight years.
Over the next 12 months, Qantas will exit underperforming routes and make aircraft changes on certain routes to better match capacity to demand.
Qantas International will withdraw from the Perth-Singapore route (first quarter FY15).
Qantas’ Brisbane-Singapore and Sydney-Singapore services will be operated by A330s, replacing B747s (first quarter FY15)
Qantas services between Melbourne and London will be re-timed in November 2014 to reduce A380 ground time in Heathrow (second quarter FY15). There are no changes to overall capacity on London flights.
The Melbourne-London service change frees up an A380 for additional flying, and Qantas will evaluate opportunities to use the aircraft on other routes.

Workforce Changes

Over the next three years, Qantas will reduce employee numbers across the Group by the equivalent of 5,000 full-time positions, through measures including:
Reduction of management and non-operational roles by 1,500.
Operational positions affected by fleet and network changes.
Restructure of line maintenance operations.
The closure of Avalon maintenance base, as previously announced.
Restructure of catering facilities including the closure of Adelaide catering, as previously announced.
The wage freeze for executives implemented in December 2013 will continue and will be extended to all Qantas Group employees.
 
Fleet and Network

• All six of Qantas International’s non-reconfigured B747s will be retired ahead of schedule, by the second half of FY16. Nine reconfigured B747s with A380-standard interiors will remain..

Does this mean routes such as NRT are on the cards for scrapping?
 
Wide bodies on east coast routes was always a major + of Qantas over Virgin.

Whatabout the Jetstar HK A320s sitting on the ground ?
 
Also there is mention on freeing up some of the Dom A330-200's for QF International, I suspect to take over the 747's.
And with the early retirement of the 767's I guess this means HNL will get an A330?
 
news reports are saying qantas called in extra security... my question is... for what? deliver bad news then call in security to intimidate workers?
 
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