Qantas downsizes Asian and New Zealand operations

19th Feb 2009

Qantas is to cut underperforming routes to China and India, as well as passing its domestic New Zealand services to its low-cost offshoot Jetstar.
The downsizing comes a few weeks after the Australian carrier posted a 66 per cent drop in first half profit to just 136 million US dollars. Jobs are expect to go although the airline has yet to give a figure.Chief executive Alan Joyce confirmed the airline made the changes after closely monitoring its international operations amid the impact of global economic crisis.
“The Qantas Group is performing well in this difficult environment but we are not immune from the need to address underperforming routes,” he said.
“We are reluctantly making changes to our China and India schedules, but will continue to offer significant capacity into both countries as they remain important business and leisure markets.”
Qantas is cutting direct flights from Australia to Mumbai from mid-May. It is also stopping direct flights from Sydney to Beijing and Melbourne to Shanghai.
In New Zealand, it will cease all service between the North and South islands, allowing its budget arm Jetstar to take over. However the number of flights between Australia and New Zealand will increase.


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