SYDNEY: Australia's Qantas Airways unveiled plans on Tuesday to set up two new Asia-focused airlines, presenting it as a do-or-die shakeup of its international business which also called for a fleet overall and up to 1,000 job cuts.
Qantas, which has been reviewing its offshore operations to cut costs and unprofitable routes, said it would launch a new, premium Asian airline as well as a Japanese low-cost carrier, the latter jointly with Japan Airlines and Mitsubishi.
"Qantas International takes up enormous amounts of capital, and our cost base is around 20 percent higher than that of our key competitors. To do nothing, or tinker around the edges, is not an option," Chief Executive Alan Joyce said in a statement.
He did not say when the new premium airline would be launched, or where it would be based, but trade unions have voiced fears that Qantas would look to rebase its international operations in Singapore, resulting in major job losses at home.
Qantas said up to 1,000 jobs would be put at risk from the shakeup, which involved the retirement of older planes and major changes to the international network.
The fleet changes call for the acquisition of between 106 and 110 Airbus A320 aircraft, including planes for Jetstar Japan and the new premium Asia-based airline. Between 28 and 32 planes of these would be current-generation A320s and the rest highly fuel-efficient, next-generation A320neo aircraft.
Qantas also delayed the delivery of its final six A380s for up to six years in a move aimed at conserving capital and bolstering its balance sheet.
It said it would also retire four Boeing 747s.
Qantas reaffirmed its earnings guidance. ' Reuters
Qantas, which has been reviewing its offshore operations to cut costs and unprofitable routes, said it would launch a new, premium Asian airline as well as a Japanese low-cost carrier, the latter jointly with Japan Airlines and Mitsubishi.
"Qantas International takes up enormous amounts of capital, and our cost base is around 20 percent higher than that of our key competitors. To do nothing, or tinker around the edges, is not an option," Chief Executive Alan Joyce said in a statement.
He did not say when the new premium airline would be launched, or where it would be based, but trade unions have voiced fears that Qantas would look to rebase its international operations in Singapore, resulting in major job losses at home.
Qantas said up to 1,000 jobs would be put at risk from the shakeup, which involved the retirement of older planes and major changes to the international network.
The fleet changes call for the acquisition of between 106 and 110 Airbus A320 aircraft, including planes for Jetstar Japan and the new premium Asia-based airline. Between 28 and 32 planes of these would be current-generation A320s and the rest highly fuel-efficient, next-generation A320neo aircraft.
Qantas also delayed the delivery of its final six A380s for up to six years in a move aimed at conserving capital and bolstering its balance sheet.
It said it would also retire four Boeing 747s.
Qantas reaffirmed its earnings guidance. ' Reuters
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