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Qantas Group to Reduce Capacity by 27% on Japan Routes, ReplacingNarita/ Cairns Service with Jetstar
Mid-June 2008
The Qantas Group announced to cut its seat capacity by 27% on the
Japan routes within this year. Following the route restructuring amid
the continual surge in fuel prices, the airline said that Japan and
Southeast Asia would be the most effected routes by the restructuring.
Currently, Qantas (QF) and Jetstar (JQ) operate in total 43
flights a week between Japan and Australia; however by the end of
2008 they will reduce the total weekly frequency to 29.
The Cairns route in particular, will be substantially reduced as
it is estimated to bring the Group a yearly loss of 100 million US$
(approximately 10.578 billion Yen) due to the soaring fuel prices,
should the route be maintained. The Narita/ Cairns route, presently
operated by Qantas 14 times a week, will be suspended in December
2008. Instead, Jetstar will start a daily service between the two
cities, but will pull out of the Chubu/ Kansai/ Cairns service also
in December.
By September 2008, Qantas will withdraw its 3-weelky Narita/
Melbourne service and will also reduce the Narita/ Sydney service
from the current 9 flights a week to 7.
Consequently, the airline's own operations will only be 7-weekly
Narita/ Sydney and 3-weekly Narita/ Perth services, totaling 10
flights per week from Japan. Jetstar, on the other hand, will
inaugurate a 5-weekly Narita/ Gold Coast route, thereby enhancing the
airline's Japan route with 19 weekly flights that include the
7-weekly Narita/ Cairns and the 7-weekly KIX/ Gold Coast/ Sydney
routes.
As a result of the route restructuring, there will be a small
number of job cuts in Cairns and Japan. The personnel reduction in
several hundreds was announced by the airline last week. This
additional reduction will also be expected on a voluntary basis for
early retirement.
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