Qantas has just announced the first phase of a major makeover for its loss-making international business.
Major initiatives include a restructure of some routes, new premium lounges in key ports, the deferral of six A380 deliveries, the launch of a low-cost offshoot in Japan, a massive order for up to 110 Airbus A320 aircraft, and the creation of a “new premium airline based in Asia”.
‘Gateway’ strategy
QF’s current flights to Buenos Aires will be replaced by a new direct service to Santiago, Chile, which will replace EZE as “the best entry point to South America for Australians”.
The current Joint Services Agreement with British Airways will be restructured to strengthen Singapore services, including daily A380 flights from Melbourne and Sydney to London via SIN.
The carrier will also continue to develop its joint business agreement with American Airlines based on its new Dallas/Fort Worth flights, and will “explore opportunities to work with oneworld member-elect Malaysia Airlines”.
Product enhancements
Qantas will develop new premium lounges in Singapore, Hong Kong and Los Angeles, while the carrier will continue to introduce next-generation 737-800 services on trans-Tasman services along with the launch of its Q Tag check-in technology for flights between Australia and NZ.
12 A380s will be in service by the end of the year, while the first of nine reconfigured 747s with A380-style product will commence flying withing the next three months.
The delivery of QF’s final six A380s has been deferred by up to six years, while four 747s will be retired.
The network changes and retirements are expected to affect up to 1000 jobs.
Asia expansion
CEO Alan Joyce confirmed that the Qantas Group “will invest in a new premium airline based in Asia, building on Qantas expertise but with a new name, new aircraft and a new look and feel.” The location for the new carrier is still to be finalised, he said.
He also announced the launch of Jetstar Japan, a new low-cost carrier to begin domestic operations by the end of 2012 and international services within a year, in partnership with Japan Airlines and Mitsubishi.
Qantas will acquire up to 110 Airbus A320 aircraft to support capacity growth and expansion into new markets, including aircraft for Jetstar Japan and the new premium Asia-based airline.
Joyce said the initiatives announced today “represent phase one of the new strategy” with further details to be announced in due course.
More information in today’s Travel Daily.