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Qantas Announces Reduction In Capacity And Services

Qantas has announced a decrease in International services as a result of the Coronavirus.

This follows on from the spread of Coronavirus through Europe, North America and Asia. The cuts are expected to continue until September.

Most A380 Flights are being replaced with the B787 which have approximately 250 less seats. The Sydney – London via Singapore flights have been redirected via Perth. While B747 flights from Sydney – Tokyo have been changed to an A330 service. Subsidiary Jetstar is also suspending routes and reducing capacity.

Qantas Group CEO Alan Joyce has announced also that there will be cuts to bonuses for management and the Group Executive team will take a pay cut for the rest of the year. Mr Joyce in particular will take no salary for the remainder of the FY20 However Mr Joyce also points out that Qantas can cut further or put capacity back should the need arise. “We expect lower demand to continue for the next several months, so taking a piecemeal approach we’re cutting capacity out to mid September. This improves or ability to reduce costs as well as giving more certainty to the market, customers and our people” “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” He said.

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 B787 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.

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