Qantas & Jetstar reduce capacity

[codash1099]

The same thought crossed my mind - how much of this is pilots as well?

and how much is a shot across the bows of the engineers and others angling for wage rises. Perhaps I'm just a bit cynical? Could it be?

Of course as this sort of thing spreads and moves across other industries, it will have an inevitable effect on oil prices. Just how long it will take is anybody's guess, but the bubble will burst sooner (hopefully) or later.

 

[oz_mark]

and how much is a shot across the bows of the engineers and others angling for wage rises. Perhaps I'm just a bit cynical? Could it be?

Of course as this sort of thing spreads and moves across other industries, it will have an inevitable effect on oil prices. Just how long it will take is anybody's guess, but the bubble will burst sooner (hopefully) or later.

Depends how much of the price is supply/demand and how much is market speculation - but I have a feeling that a big chunk at the moment is speculators. If this is so, then the oil price will take a rapid fall at some point.

 

[JohnK]

Jetstar better keep its damn QP operational at OOL...

With JQs low cost base I could not imagine that they will continue to operate the lounge or pay for its use.

So if Qantas pulls out of OOL why would they keep the lounge operational for QC members and high status FFers to fly on cheap JQ airfares? Just out of interest does QF continue to operate any domestic lounges in airports without QF flights?

otherwise DJ better start building a the Lounge!

Actually, both please!

DJ can buy the QF lounge. Going cheap....

 

[moa999]

And the lounge would work for DJ given it effectively sits between the two terminals, couple of new doors and presto.

but again given OOL is predominately leisure I sadly see it disappearing

 

[jenno]

are the 747-300's that uneconomic? they certainly clog up PER airport but that's cause everytime i'm on them they're either full or very nearly. i would have thought pulling capacity off PER routes wouldn't be a good money-making strategy at the moment - QF must be making a packet out of PER-MEL/SYD at present.

Wondering if the plan is to replace them with more services on smaller planes or just reduce available seats..?

 

[oz_mark]

Wondering if the plan is to replace them with more services on smaller planes or just reduce available seats..?

Over time the 737's on the routes will become 767's, but also I understand there are some additional services across the week (e.g. on PER-SYD the 2 pm service will run more days of the week)

 

[pauly7]

Can't quite get my head around the A320 either, guessing it must be pilots. As per peoples comments here, on a business decision basis at least, the general reaction has been positive see below

Market applauds Qantas cuts | theage.com.au

Also linked to this article was the below, which spells out more pain for Virgin Blue - still apparently highly reliant on leisure travel but being caught between a cost advantaged Jetstar/Tiger and QF which has much greater flexibility to raise prices. In the Australian they even questioned whether the launch of Virgin's US flights is being re-considered in the current environment... Surely its too late for them to cancel those?! Hope so!

Airlines hit turbulence as fuel and fares rise | theage.com.au

 

[oz_mark]

Can't quite get my head around the A320 either, guessing it must be pilots. As per peoples comments here, on a business decision basis at least, the general reaction has been positive see below

It's certainly the Jetstar ones that are a surprise. The QF plans were sort of already on the cards

retire a 737 - there are new 737's on the way
accelerate 743 retirement - these were pretty much gone by the end of the year anyway
retire 767 - not sure, but maybe some of the new 737's will take up the slack, and things will get shuffled around.

 

[ANstar]

Some posts on PPRUNE suggest it is an A320 that was due to be returned to Jetstar Asia and the A321 was in bad shape so that is why that delivery was canned.

 

[markis10]

are the 747-300's that uneconomic?

About 13% less fuel is burned by a 747-400 in comparison, they are after all 20 years old!

 

[oz_mark]

Some posts on PPRUNE suggest it is an A320 that was due to be returned to Jetstar Asia and the A321 was in bad shape so that is why that delivery was canned.

In that case they have announced a set of retirements and grounding that were going to happen anyway?

 

[ANstar]

In that case they have announced a set of retirements and grounding that were going to happen anyway?

A bit of yes and No.

The aircraft side of things yes - however the route cuts arent really huge.

QF has been wanting to get out of OOL for ages - this is the perfect chance... The JQ routes were marginal and only a couple of days a week.

It is a good PR move by Qantas as it will put pressure on the EBA negotiations with staff....

I mean the SMH has the story of striking enginners wanting more money - the public are hardly going to be sympathetic when they see QF cutting services to stay alive! (well thats how the pr spin works)

 

[oz_mark]

It is a good PR move by Qantas as it will put pressure on the EBA negotiations with staff....

I mean the SMH has the story of striking enginners wanting more money - the public are hardly going to be sympathetic when they see QF cutting services to stay alive! (well thats how the pr spin works)

Certainly after digesting this announcement, it does appear to be mostly PR Spin.

 

[Kendall Roy]

Qantas dispute 'could get very nasty', ACTU says | Herald Sun

Bloody unions!

 

[serfty]

In relation to the 743's the announcement was to "accelerating the retirement of its four B747-300 aircraft", so there is a degree of varience.

 

[NM]

About 13% less fuel is burned by a 747-400 in comparison, they are after all 20 years old!

I beliebve that is the fuel burn difference for new aircraft. As an aircraft ages, its efficiency drops due to a few reasons:

• Accumulated dirt that settles into all the nooks and crannies can amount to several tons of dead uplift by the time a large aircraft reaches 20yo (a bit like me carrying extra weight as I get older I suppose)
• Surface anomalies due to years of debris, bird strikes and general bumps and scratches reduce the aerodynamic efficiency of the bull.
• Worn and now poorly fitting components result for years of operation and maintenance. again these can affect the aerodynamic qualities of the hull.

I have smome more detail from an Airbus publication if anyone is interested in the affects of aerodynamic deterioration.

 

[Evan]

Also the 743's need a seperate flight engineer... costs $$ and issues with crewing that position.
E

 

[simongr]

I mean the SMH has the story of striking enginners wanting more money - the public are hardly going to be sympathetic when they see QF cutting services to stay alive! (well thats how the pr spin works)

And QF have frozen exec pay... mind you I bet there wont be a big announcement when it is unfrozen

 

[MelUser]

I beliebve that is the fuel burn difference for new aircraft. As an aircraft ages, its efficiency drops due to a few reasons:

• Accumulated dirt that settles into all the nooks and crannies can amount to several tons of dead uplift by the time a large aircraft reaches 20yo (a bit like me carrying extra weight as I get older I suppose)
• Surface anomalies due to years of debris, bird strikes and general bumps and scratches reduce the aerodynamic efficiency of the bull.
• Worn and now poorly fitting components result for years of operation and maintenance. again these can affect the aerodynamic qualities of the hull.

I have smome more detail from an Airbus publication if anyone is interested in the affects of aerodynamic deterioration.

What about a working bee for AFF members to come along and help clean the planes! [I'd be happy to volunteer some spare time]

 

[Platy]

And QF have frozen exec pay... mind you I bet there wont be a big announcement when it is unfrozen

Nor would most rate it a hardship when exec pay went up 20% last year, with Dixon on $6m +