ID :
171872
Wed, 03/30/2011 - 12:43
Auther :
Shortlink :
http://m.oananews.org//node/171872
The shortlink copeid
Qantas to reduce capacity on fuel cost
(AAP) - Qantas Airways Ltd has announced a raft of cost-cutting measures including reducing capacity in response to rising fuel costs.
Qantas chief executive Alan Joyce said the measures included reductions in domestic and international capacity, retirement of aircraft, reduction of management positions and ongoing fuel surcharges.
The airline was responding to high oil and jet fuel prices and the impact of significant natural disasters in Japan, New Zealand and Australia, Mr Joyce said.
"The significant and sustained increases in the price of fuel is the most serious challenge Qantas has faced since the Global Financial Crisis," Mr Joyce said in a statement on Wednesday.
Mr Joyce did not say how many managers would be sacked.
A Qantas media release said there would be a "review of manpower costs which will include initiatives to reduce management headcount and annual and long service leave balances".
Shares in Qantas gained four cents, or 1.86 per cent, to $2.19 by 1324 AEDT. On March 17, the stock closed at $2.07, the lowest since July 2009.
Growth in capacity on domestic flights in the second half of 2010-11 would be reduced from 14 per cent to eight per cent and from 10 to seven per cent on international flights.
The airline will suspend some Jetstar and Qantas flights from Australia to Japan from April and reduce the size of aircraft flying there from Boeing 747s to Airbus 330s.
Flights to Christchurch will also be downsized.
Qantas has hiked fares for trans-Tasman flights twice since February and announced last week that fares on domestic routes would rise by up to $10 per sector.
Qantas Group passenger numbers for the month of February 2011 were up 5.1 per cent from the previous year.
Revenue passenger kilometres (RPK) increased by 5.1 per cent and available seat kilometres (ASK) increased by 7.2 per cent.
Therefore, the revenue seat factor of 77.9 per cent - the percentage of available seats being filled - was down by 1.6 percentage points.
For the financial year to February, 2011, group passenger numbers were up 8.7 per cent from the previous year.
RPKs increased by 6.2 per cent and ASKs increased by 7.2 per cent, resulting in a revenue seat factor of 81.1 per cent, 0.8 of a percentage point lower.
Mr Joyce said Qantas Group's second half results would be adversely affected by $25 million due to the grounding of the A380 Rolls-Royce fleet over engine incidents, following a $55 million impact in the first half.
Natural disasters including Queensland's floods and cyclones, and the Christchurch and Japan earthquakes and tsunami would have a $140 million impact.
In order to recover some of the costs in increased fuel prices, Qantas had increased domestic airfares and international fuel surcharges, he said.
Qantas chief executive Alan Joyce said the measures included reductions in domestic and international capacity, retirement of aircraft, reduction of management positions and ongoing fuel surcharges.
The airline was responding to high oil and jet fuel prices and the impact of significant natural disasters in Japan, New Zealand and Australia, Mr Joyce said.
"The significant and sustained increases in the price of fuel is the most serious challenge Qantas has faced since the Global Financial Crisis," Mr Joyce said in a statement on Wednesday.
Mr Joyce did not say how many managers would be sacked.
A Qantas media release said there would be a "review of manpower costs which will include initiatives to reduce management headcount and annual and long service leave balances".
Shares in Qantas gained four cents, or 1.86 per cent, to $2.19 by 1324 AEDT. On March 17, the stock closed at $2.07, the lowest since July 2009.
Growth in capacity on domestic flights in the second half of 2010-11 would be reduced from 14 per cent to eight per cent and from 10 to seven per cent on international flights.
The airline will suspend some Jetstar and Qantas flights from Australia to Japan from April and reduce the size of aircraft flying there from Boeing 747s to Airbus 330s.
Flights to Christchurch will also be downsized.
Qantas has hiked fares for trans-Tasman flights twice since February and announced last week that fares on domestic routes would rise by up to $10 per sector.
Qantas Group passenger numbers for the month of February 2011 were up 5.1 per cent from the previous year.
Revenue passenger kilometres (RPK) increased by 5.1 per cent and available seat kilometres (ASK) increased by 7.2 per cent.
Therefore, the revenue seat factor of 77.9 per cent - the percentage of available seats being filled - was down by 1.6 percentage points.
For the financial year to February, 2011, group passenger numbers were up 8.7 per cent from the previous year.
RPKs increased by 6.2 per cent and ASKs increased by 7.2 per cent, resulting in a revenue seat factor of 81.1 per cent, 0.8 of a percentage point lower.
Mr Joyce said Qantas Group's second half results would be adversely affected by $25 million due to the grounding of the A380 Rolls-Royce fleet over engine incidents, following a $55 million impact in the first half.
Natural disasters including Queensland's floods and cyclones, and the Christchurch and Japan earthquakes and tsunami would have a $140 million impact.
In order to recover some of the costs in increased fuel prices, Qantas had increased domestic airfares and international fuel surcharges, he said.
