In a bid to resuscitate “steadily fading” overseas operations, Australia’s Qantas Airways plans to make 1,000 domestic jobs redundant, defer Airbus A380 (and possibly some Boeing 787) deliveries, retire some Boeing 747-400s, and replace some long-haul services with code-sharing flights. The company hopes to stimulate its Qantas International business by establishing two offshore joint ventures: a “premium” operation with an undisclosed Asian airline and a low-cost carrier (LCC) partnership for its Jetstar subsidiary with Japan Airlines (JAL) and Mitsubishi.
CEO Alan Joyce said Qantas International faces serious structural challenges, arising from increased competition and high costs. “Large numbers of routes, primarily to Asia and Europe, are loss-making, with no improvement in sight. Our share of the Asian international market has collapsed to 14 percent.” Plans include opening global “gateways” through closer ties with Oneworld alliance partners.
