Qantas cuts more capacity as COVID-19 eats into airline's profits

 
Topic moved from News by bevans on 10 Mar 2020 21:17
  bevans Site Admin

Location: Melbourne, Australia
I am directly affected by this decision as I have tickets booked to UK mid year on Qantas via Singapore.  1/3 of all airline traffic has been dropped across the globe and this unfortunately is going to make it very difficult for some airlines and perhaps QANTAS also.

Airlines who cannot rely on other domestic revenue or that from say a government top-up are going to struggle and this is not good news.  I am concerned about where this is heading.

I am not sure which two routes will retain the A380 I am assuming Melbourne/Singapore and this is quite a busy route.  Japan perhaps?

Qantas cuts more capacity as COVID-19 eats into airline's profits

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  Big J Deputy Commissioner

Location: In Paradise
I am not sure which two routes will retain the A380 I am assuming Melbourne/Singapore and this is quite a busy route.  Japan perhaps?

Qantas cuts more capacity as COVID-19 eats into airline's profits
bevans
I back they will retained to fly to the US.

Travel to Asia will plummet during this crisis.

QF announce significant cuts to the Asian routes
  freightgate Minister for Railways

Location: Albury, New South Wales
ABC News reports San Francisco flights cancelled and also Dallas.
  Big J Deputy Commissioner

Location: In Paradise
ABC News reports San Francisco flights cancelled and also Dallas.
freightgate
Thanks for clarifying freightgate.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
ABC News reports San Francisco flights cancelled and also Dallas.
freightgate
What routes are the A380's still flying?
  bevans Site Admin

Location: Melbourne, Australia
I have been on A380's between Singapore and Melbourne (there is more than 1 flight per day) and Qf1 connecting in Singapore is a through flight from Sydney to LHR.  Withdrawl of all asian connections for LHR now to go via Perth direct the A380 cannot be used is my suggestion.

Melbourne to SFO is a 787.    Melbourne to LAX/Return QF93/94 is an A380-800.  (well currently) I guess that would stay.
  justapassenger Minister for Railways

There will be more than two A380s operating for quite a while yet, as the current planned changes don't all take effect immediately.

It looks like QF11/QF12 (Sydney to Los Angeles) will be the sole route currently planned to retain the A380 without any change.

QF1/QF2 (Sydney-Singapore-London) - swap from A380 to B787-9 and reroute via Perth from 20 April.
QF7/QF8 (Sydney to Dallas/Fort Worth) - swap from A380 to B787-9 from 20 April.
QF93/QF94 (Melbourne to Los Angeles) - swap from A380 to B787-9 from 1 June.

QF35/QF36 (Melbourne-Singapore) has already been swapped from A380 to B787-9, this is then going to change over to A330 when QF37/38 (also Melbourne-Singapore, normally operated by A330) is suspended.
QF127/QF128 (Sydney-Hong Kong) has already been swapped from A380 to A330.

The current plan with the San Francisco flights is that the Brisbane (QF59/QF60) and Melbourne (QF49/QF50) routes will be suspended from 18 April, but the Sydney route (QF73/QF74) will continue and will be swapped over to a larger B747-4 to effectively make it a route merger.
  bevans Site Admin
  bevans Site Admin

Location: Melbourne, Australia
Qantas announces more and more cuts

Big news from Qantas - 6000 jobs to go, 15,000 stood-down staff to stay stood-down for longer, 100 planes (mostly international fleet) grounded for 12 months; retire 6 747s. CEO Joyce calls it "a restructure to survive", and a three year recovery plan.
Qantas

Big news.
  Big J Deputy Commissioner

Location: In Paradise
Qantas announces more and more cuts

Big news from Qantas - 6000 jobs to go, 15,000 stood-down staff to stay stood-down for longer, 100 planes (mostly international fleet) grounded for 12 months; retire 6 747s. CEO Joyce calls it "a restructure to survive", and a three year recovery plan.

Big news.
bevans
Sure is, but not really surprising.

On one hand I feel for the impacted employees. On the other I can understand why QANTAS is doing this. The reality is that aviation pre COVID19 won't be fully restored to 2022 the earliest.

Air NZ cut 30% of their workforce and both QANTAS and Air NZ are considered the better managed and operated airlines globally. Those Mid East and Asian airlines will hit their governments and the Europeans, will be slash and burn or go to the wall.

With the US, while there is no national approach to COVID19 air travel levels domestically will be higher than the rest of the world, their international legs will be cut, so those airlines will cut too. As it is a seriously competitive market, some will probably go into Chapter 11 protection.

Until air travel frees up internationally, aviation will struggle. I saw the nonsense on the online news articles with comments, blaming the cuts on state border closures. Utter cr@p. It has some impact, but the reality is NSW/Victoria is not closed and this leg is one of the most travelled globally pre COVID19. Demand has plummeted, as understandably people are avoiding unnecessary travel and won't until they are comfortable that COVID19 is under control nationally. Freeing up the borders will not turn the issue for QANTAS as international tourism and business has disappeared. That is where QANTAS has cut hard.

I hope that the miracle vaccine appears next year, or we will have two years of hell.
  Carnot Minister for Railways

At present Qantas/Jetstar are running 11 passenger and 8 freight flights Melb to Syd each weekday. So 38 flights per day in that corridor.

Virgin only about 6 flights per day (3 each way).

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