Further Qantas cuts likely
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Qantas Airways may further cut passenger capacity or defer orders of new planes if the global recession continues to reduce demand for air travel, according to a Bloomberg report.
Alan Joyce, who takes over as the airline’s Chief Executive Officer today, said that more planes may be grounded and more international routes cut, though he added that strong domestic sales are helping to “insulate” the carrier’s earnings from the drop in international revenue. Qantas shed 10% of its international seats this week and forecast that its profits will drop 64%.
Meanwhile Joyce also said that delivery of the Qantas’ new fleet of Boeing 787s next year may be delayed by six months because of strikes at the planemaker’s US factories.
“While we wouldn’t want to do it, the 787 is so far delayed that our contract allows us to walk away from it,” Joyce was reported saying. “We still want to take the 787 and we plan to take them, but we do have options with them.” Qantas has orders for 115 of the aircraft. He added that Qantas wouldn’t be taking up its option to purchase four extra Airbus A380s. The carrier has a firm order for 20 superjumbos.
Joyce takes charge of the Australian carrier almost five years after establishing the discount airline, Jetstar. He takes over from Geoff Dixon.
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