Changes to VA shorthaul Asian flying

As expected by a lot of people Virgin Australia has today announced it will withdraw from the Perth - Phuket route and hand its Perth/Melbourne/Adelaide - Bali routes to subsidiary Tigerair.

Tigerair will take over the Bali flights from March, with the Phuket route being dropped from February.

Regulatory approval is still begin sought for Tigerair to operate a fleet of 3 all economy Boeing 737-800s on the Bali flights.  Tigerair has until now been an all A320 operator.

Virgin will redirect its capacity from these routes to an increase on Sydney/Melbourne - Christchurch as well as seasonal capacity increases on flights to Fiji and the Solomon Islands.  Virgin reduced its capacity into Christchurch as a result of the effect on passenger numbers from the Christchurch earthquakes.

These changes come on the back of the annual profit announcement from Virgin which was a bottom line net loss of $94M AUD.  It is expected that these changes along with a $1b cost saving program will return the airline to profitability in the near future.

Read more about the changes to these services via the Brisbane Times HERE

Comings and goings #2

Here is a quick look at some of the notable comings and goings for airlines in the Australia/New Zealand region between the last update in March and now.

Air New Zealand have reduced their Boeing 737 fleet to just two frames, with two more leaving the fleet.
ZK-NGG Boeing 737-33A deregistered 17-June-2015 and noted recently in CHC wearing N303KH
ZK-NGR Boeing 737-33A deregistered 01-May-2015
ZK-EAK Beech 1900D deregistered 17-June-2015
During the period they gained the following A320
ZK-OXI Airbus A320 registered 13-April-2015

To enable Sounds Air's expansion and its replacement of Air new Zealand on some services Sounds Air have taken delivery of the following aircraft
ZK-PLS Pilatus PC12/45 registered 16-March-2015 ex VH-KWO
ZK-PLZ Pilatus PC12/45 registered 28-May-2015 ex VH-JMU
ZK-PLT Pilatus PC12/45 not yet registered still registered as VH-MWO arrived in NZ on 04-June-2015

The departure of the former Vincent Aviation fleet continues
ZK-VAI J31 deregistered 28-May-2015 to A3-SKY with Real Tonga Airlines delivered 04-June-2015
ZK-ECO BAe 146-200 deregistered 20-April-2015 to VH-SUF with Skyforce (Pionair Australia)registered 24-April-2015
VH-VNU Saab SF340B deregistered 7-April-2015 Exported to Guam with Skydive Guam

Cobham (National Jet Express) have taken delivery of another aircraft
VH-NJU Avro RJ85 registered 10-June-2015

Jetstar continued to receive Boeing 787-8s
VH-VKJ Boeing 787-8 registered 30-April-2015
VH-VKK Boeing 787-8 registered 19-May-2015

There have been several changes to the Qantas fleets
VH-NHY EMB120R deregistered 02-March-2015 exported to South Africa
VH-OGI Boeing 767-300 deregistered 06-May-2015 exported to USA
VH-OGL Boeing 767-300 deregistered 07-Aptil-2015 exported to USA
VH-OGO Boeing 767-300 deregistered 19-June-2015 exported to USA
VH-OGT Boeing 767-300 deregistered 16-June-2015 exported to USA
VH-TJI Boeing 737-476 deregistered 27-May-2015 exported to USA
VH-TJK Boeing 737-476 deregistered 30-April-2015 exported to USA
VH-OJA Boeing 747-400 deregistered 31-March-2015 to HAARS Aviation Museum Wooloongong

The next wave of Virgin Australia deliveries have been registered but are yet to be delivered, interestingly they have returned to the YF* rego block after receiving deliveries in the YI* block, suggesting these will be domestic aircraft. 
VH-YFS Boeing 737-8FE registered 12-May-2015 not yet delivered
VH-YFT Boeing 737-8FE registered 12-May-2015 not yet delivered
VH-YFU Boeing 737-8FE registered 12-May-2015 not yet delivered
VH-YFV Boeing 737-8FE registered 12-May-2015 not yet delivered

NZs latest A320 arrives

The newest domestic configured Airbus A320 for Air New Zealand ZK-OXI arrived into Christchurch from Cairns as NZ6097 on delivery in the early hours of Wednesday 15-April-2015.

ZK-OXI as all NZ domestic configured A320s does not have HF radios fitted and as usual flew across the Tasman in convoy with a scheduled flight, tonight it followed NZ804 BNE-CHC operated by ZK-OJG

ZK-OXI arriving into CHC on delivery

The delivery flight began in Toulouse on Saturday 11-April-2015 and routed TLS-MCT, On Sunday 12-April-2015 it routed MCT-KUL, on Monday 13-April-2015 it flew the penultimate leg KUL-CNS before flying its CNS-CHC leg today Tuesday 14-April-2015

JQs baggage woes

Jetstar's New Zealand operations have taken another publicity hit after issues with the baggage loading system in Wellington on Wednesday 08-April-2015.

Passengers on VH-VQA JQ290 CHC-WLG were the worst effected with their baggage remaining on the aircraft as it returned to Christchurch as JQ291 incidentally only delayed by 30 minutes.  The baggage was then unloaded at Christchurch and was finally delivered to passengers today Thursday 09-April-2015.  Passengers are quoted as saying no one at Jetstar knew what was going on, from staff at the airport to staff in the call centre.

Passengers arriving in from the Gold Coast on JQ167 experienced delays of 2 hours getting their luggage with some having theirs delivered by courier five hours after landing.  Flight Radar 24 shows A320 VH-VGI operating the return JQ168 WLG-OOL service was delayed by two hours as a result.

VH-VGP operating JQ292 WLG-AKL was also delayed as result with the flight departing at 12:46NZST two and three quarters hours after its 09:05NZST scheduled departure time.  This resulted in JQ299 AKL-ZQN and JQ296 ZQN-AKL also operating 3 hours behind schedule.

VH-VGU also experienced delays across the day stemming from Wellington beginning with JQ274 WLG-AKL delayed 90 minutes, this lead to delays on JQ247 AKL-CHC, JQ250 CHC-AKL, JQ285 AKL-DUD, JQ284 DUD-AKL, JQ269 AKL-WLG, JQ268 WLG-AKL

VH-VFI also experienced delays yesterday of 2 hours on JQ255/254/257/256 AKL-CHC-AKL-CHC-AKL these cannot be directly attributed to the baggage loading system in WLG although they may relate to crew being on one of the delayed flights from WLG.

Read more on the baggage handling delay at WLG via stuff.co.nz HERE including the passenger complaints.
**note the stuff.co.nz article incorrectly uses a photo of a Jetstar 787-8 with this article

JQs week of 1sts

Jetstar launched a raft of inaugural flights this week.

On Sunday 29-March-2015 Cairns welcomed Jetstar's newest international route CNS-DPS-CNS with A320 VH-VFQ operating the inaugural JQ90/91 service.

Gold Coast also saw a new service on Sunday 29-March-2015 with JQ982/983 OOL-PER-OOL departing.  The inaugural service was operated by A320 VH-VFD

On Monday 30-March-2015 the new JQ164/165 MEL-WLG-MEL service departed Melbourne at the delightful red-eye hour of 00:45 with A320 VH-VQR the lucky aircraft.

On Tuesday 31-March-2015 the new JQ125/124 OOL-NAN-OOL service departed Gold Coast with A320 VH-VFJ operating the inaugural return service.

What is Nyepi Day? And why are there no flights?

Today is Nyepi the Balinese 'Day of Silence' which is celebrated as part of Isakawarsa with tomorrow being Balinese New Years Day.  Although a Hindu festival, Nyepi is observed by all in Bali, a description of it follows

Observed from 6 a.m. until 6 a.m. the next morning, Nyepi is a day reserved for self-reflection, and as such, anything that might interfere with that purpose is restricted. The main restrictions are no lighting fires (and lights must be kept low); no working; no entertainment or pleasure; no traveling; and, for some, no talking or eating at all. The effect of these prohibitions is that Bali's usually bustling streets and roads are empty, there is little or no noise from TVs and radios, and few signs of activity are seen even inside homes. The only people to be seen outdoors are the Pecalang, traditional security men who patrol the streets to ensure the prohibitions are being followed.  Although Nyepi is primarily a Hindu holiday, non-Hindu residents of Bali observe the day of silence as well, out of respect for their fellow citizens. Even tourists are not exempt; although free to do as they wish inside their hotels, no one is allowed onto the beaches or streets, and the only airport in Bali remains closed for the entire day. The only exceptions granted are for emergency vehicles carrying those with life-threatening conditions and women about to give birth.

This effects the following flights to/from Australia today/tomorrow morning

KEY:

JQ - Jetstar

VA - Virgin Australia

GA - Garuda Indonesia

QZ - Indonesia AirAsia

320 - Airbus A320

73H - Boeing 737-8FE(W)

333 - Airbus A330-300

332 - Airbus A330-200

100 - Fokker F100

788 - Boeing 787-8

2015 Comings and Goings to date

The first two and a half months have seen quite a few changes to the New Zealand & Australian aircraft registers in terms of passenger aircraft.  Here is a look at some other the comings and goings.

Air New Zealand had a net gain of two aircraft in the period welcoming the following 3 arrivals;
ZK-MVF ATR 72-600 registered 14-January-2015
ZK-OXG Airbus A320 registered 20-February-2015
ZK-OXH Airbus A320 registered 27-February-2015

This was offset by the departure of a Boeing 737-33A
ZK-NGP Boeing 733 deregistered 16-March-2015 exported to storage awaiting its future

As per my previous posts between 30-January-2015 and 14-March-2015 Virgin Australia returned their fleet of 10 Boeing 737-8FE aircraft to the Australian register - see HERE for more. 
Virgin Australia also received one new build Boeing during this time
VH-YIY Boeing 738 registered 5-February-2015

Airwork Flight Operations Limited who are the preferred contractor to Toll Freight in Australia farewelled one of their Boeing 737 Freighters

ZK-TLF Boeing 734 deregistered 10-March-2015 and exported to unknown whereabouts

As mentioned in THIS post last year, Vincent Aviation unfortunately went into receivership in October-2014.  Their fleet has begun to move on.

ZK-ECO BAe 146 re-registered to ANCL Investments Ltd 12-March-15 but took effect on 5-October-2014 - despite leaving the country this aircraft remains on the New Zealand register.

ZK-VAB Beech 1900D deregistered 25-February-2015 exported unknown future

ZK-VAH Jetstream 32 deregistered 18-March-2015 exported unknown future

ZK-JSH & ZK-LFW Jetstream 31 re-registered on 9-March-2015 but took effect on 17-October-2014 to Air Freight NZ Ltd

This leaves just Jetstream 32 ZK-VAI as the remaining passenger aircraft owned by Vincent Aviation on the New Zealand register.

Alliance Airlines added one frame during the period

VH-NKU Fokker F28Mk70 (F70) registered 17-February-2015

Qantas saw 3 of their previously departed aircraft leave the Australian register during the period, all three were exported to the USA where they will be prepared for their new owners.

VH-OGJ Boeing 767-338 deregistered 19-January-2015 to C-FOGJ with WestJet in Canada

VH-OGN Boeing 767-338 deregistered 6-March-2015 to WestJet in Canada

VH-TJS Boeing 737-438 deregistered 30-January-2015 due to return to the region with Airwork NZ

There were two changes for Jetstar during the period with two aircraft leaving their fleet

VH-VQB Airbus A320 deregistered 20-January-2015 exported to Mexico as XA-VAH with VivaAeroBus

VH-EBJ Airbus A332 transferred to Qantas 13-March-2015

Pacific disruptions due to TC Pam

TC Pam seen covering New Caledonia and Vanuatu

There are disruptions to flights across the South Pacific today with tropical cyclone Pam effecting flights into New Caledonia and Vanuatu.

Air New Zealand has postponed flight NZ782 AKL-NOU for over 32hrs, the flight was scheduled to depart Auckland this morning Saturday 14-March-2015 at 10.05NZDT but will now depart tomorrow Sunday 15-March-2015 at 18:15NZDT.
It is not yet know if flight NZ788 AKL-VLI scheduled for 09:40NZDT tomorrow will be delayed or cancelled as the cyclone tracks south.

Virgin Australia have postponed flight VA171 BNE-VLI from 10:30AEST today to 10:40AEST tomorrow.

Qantas have postponed flight QF87 BNE-NOU from 10:00AEST today until 09:30AEST tomorrow, meanwhile QF91 SYD-NOU has been cancelled.

Air Vanuatu have cancelled both their flights today NF50/51 VLI-AKL-VLI and NF10/11 VLI-SYD-VLI

Meanwhile Aircalin have launched both their flights today with A320 F-OJSB departing NOU for MEL as SB110 and A330 F-OHSD departing NOU for NRT as SB800, it appears that both return flights will operate delayed.  SB111 MEL-NOU delayed from 14:20AEDT to 08:00AEDT while SB801 NRT-NOU will delay from 12:15JST to 19:15JST

Air New Zealand's latest A320 arrives home

The latest A320 for Air New Zealand ZK-OXH arrives into Christchurch tonight Monday 02-March-2015 as NZ6397 from CNS at the end of its ferry flight from Airbus in Toulouse.

As they were built to fly domestic flights only, these Airbus A320 fleet are not equipped with HF radios so like its predecessors ZK-OXH has had to fly the CNS-CHC leg in company with another Air New Zealand flight so it can keep in communication over the Tasman Sea.

As the below Flight Radar 24 screenshot shows ZK-OXH is flying across the Tasman in company with scheduled BNE-CHC flight NZ804 ZK-OJF

FlightRadar24 screen shot of A320 ZK-OXH as NZ6397 in company with NZ804 off the Northern New South Wales Coast

Click HERE for photos of ZK-OXH in Cairns over at fellow blog YBCS Plane Spotting

Qantas route announcements

Qantas have made a few route announcements in the last coupe of weeks and look set to make at least one more - here is a round up.

BNE-NRT

As mentioned in my news round up vlog post in December last year, Qantas announced they would introduce a 4x weekly A330 service on the Brisbane to Tokyo Narita route and were looking to add another port to fill the remaining 3x weekly slots.  Qantas have now announced that the BNE-NRT flight will operate daily.

MEL-HTI

Qantas have announced that from Saturday 27-June-2015 they will take over the Melbourne to Hamilton Island service from Jetstar, offering passengers a premium service on this route. QF870/871 will operate on Saturdays and Sundays with a Boeing 737-800.

MEL-PPP

With Qantas taking over their Hamilton Island service, Jetstar have announced a new 3x weekly Melbourne - Proserpine (Whitsunday Coast)  The first flight will be on Thursday 25-June-2015 with JQ831/832 operating Th-Sa-Mo utilising Jetstar's Airbus A320 aircraft.

SYD-YVR

Qantas have announced a return to the Sydney - Vancouver route with a seasonal 3x weekly Boeing 747-400 service.  Services will operate during the northern summer in June-July and again in the northern winter December-January.  QF75/76 will operate on Mo-Th-Sa

PER-SIN

While not yet officially announced Qantas are set to return to the Perth - Singapore route with a daily Boeing 737-800 service.  Qantas last served this route in July 2104 with A330 equipment.  Timetables show the new flights, QF71/72, are set to depart from Saturday 13-June-2014


Read more about these services:

BNE-NRT/MEL-HTI/MEL-PPP via Qantas Media Release HERE
SYD-YVR via Qantas Media Release HERE
PER-SIN via airlineroute.net HERE

JQ launch new routes

The good folks at JQ have kicked off the holiday season by gifting the traveling public 3 new routes.

JQ will launch CNS-DPS and MEL-WLG and reinstate OOL-PER.

The CNS-DPS service will launch on 31-March-2015 as JQ90 departing CNS at 22:50 with an 01:30 arrival into DPS, the return JQ91 is set to depart DPS at 02:20 with an 08:30 arrival into CNS.  The flight will operate 3x weekly with A320 aircraft.

OOL-PER a returning service is set down as evening departures out of OOL and a BOC (Back of Clock or Red-eye) return flight.  This flight will commence on 29-March-2015 and depending on which source you read will operate 4-6x weekly also utilising the A320.

The MEL-WLG service which will launch on 30-March-2015 will begin with a BOC flight from MEL at 00:45 with an 06:05 arrival into WLG the return service will join the standard am bank of Australia bound flights out of WLG at 06:45.  This flight too will be 4x weekly with an A320.

(In case you were wondering its too damn hot in BNE tonight to record this as a video post!)

VA to take full control of TT for just $1

Media outlets report Virgin Australia CEO John Borghetti is set to take up the remaining 40% stake in low cost carrier TigerAir Australia for the princely sum of just $1.

Taking full ownership of TigerAir Australia has always been part of the Virgin Australia strategy as part of their 'Virgin Vision 2017' plan.

Borghetti is quoted as saying he intends to have the struggling carrier back in profitability ahead of schedule before the end of 2016, by leveraging the resources of the wider Virgin Australia group.

So what exactly does $1 get Virgin?  Obviously 40% of remaining shares, but also a fleet of 13 A320 aircraft, obvious current debt, the rights to operate the TigerAir Australia in Australia, but also the rights to operate the brand on a number of short haul international routes from Australia.

This international expansion would likely see TigerAir competing against Jetstar on routes to Bali and other south east Asian locations and may open up the opportunity for TigerAir to enter slim Trans Tasman routes, especially those that have previously been flown and dropped by the major carriers.

The transaction is expected to be completed by the end of the year pending permission from regulatory authorities and shareholders.

You can read more on the plan via Australian Business traveller or The Australian

JQ launch OOL-WLG/ZQN flights

Jetstar have today announced two new trans-tasman routes from the Gold Coast at a media event in Wellington.

The Gold Coast will now see a 3x weekly return service to Wellington and also to Queenstown.

WELLINGTON
The new flights to Wellington mark the first international service to WLG by Jetstar.  It appears the first flight on this route will take off on Friday 12-December-2014

JQ167 originates at the Gold Coast departing Coolangatta at 07:30 AEST Wednesday, Friday and Sundays arriving into WLG at 13:50 NZDT.  The return service JQ168 departs WLG W,F, Su at 14:30 NZDT and arrives into OOL at 15:15 AEST.


QUEENSTOWN
Queenstown will see its 3rd Jetstar international destination with Gold Coast following Sydney and Melbourne.  Flights between the two playgrounds take off on Saturday 13-December-2014

JQ193 departs OOL at 07:45 AEST Saturday, Monday and Thursdays arriving into Queenstown at 13:50 NZDT.  The return service JQ194 departs ZQN at 14:30 NZDT and arrives OOL at 15:00 AEST


All flights will operate with Jetstar's A320 aircraft.  One way launch fares on OOL-WLG are $99.00NZD and $129.00NZD on OOL-ZQN

At time of publishing the official Jetstar media release has not been published on their website but an article from stuff.co.nz can be found HERE

JQ also have a loss

As mentioned in the Qantas Group loss post, Jetstar also had a full year loss of $116m ($AUD) down from a profit of $138m in FY13

Jetstar's domestic Australian operations were profitable as they have been every year since the launch in 2004.

The losses are attributed to unfavourable fuel costs of $86m, a $113m yield decline across the JQ group and $70m in costs for the rapid acceleration of the Jetstar Japan operation, as well as another $20m in costs for other Jetstar operations in Asia.

- Jetstar Asia is the leading LCC in Singapore
- Jetstar Japan is the fastest growing LCC in Japan
- Jetstar Pacific in Vietnam is growing and will increase its fleet from 7 to 10 by December 2014
- Jetstar Hong Kong is still stuck on the ground awaiting regulatory approval

Fleet
As mentioned in the Qantas post there have been some fleet changes with Jetstar

- JQi has received 4x B787-8 enabling it to return 3x A332 to Qantas
- JQd(AU) has sold 5x A320 on order based on the subdued outlook for domestic growth
- 21x A320 currently on order have been deferred for 4 years and converted into an order for 21x A320neo taking the total A320neo order to 99 frames
- The final 3 B787-8 of the original 14 frame have been deferred (previously announced)

The Jetstar result is buried in the middle of the Qantas group announcement and can be found in the Qantas Group FY14 Financial Results Media Release document HERE

QF group lose big

Day two of Australasian Aviation financial announcements saw Qantas announce a record $2.843 billion ($AUD) full year loss.

Qantas has reported a lower than expected full-year underlying loss before tax of $646 million, but booked a statutory loss of $2.8 billion as a result of hefty restructuring charges and writedowns to its fleet.

One of the most notable hits was the historic write down of the international fleet at $2.6b most notably due to an exchange rate of around $0.68 AUD-USD at time of purchase.

Qantas domestic had an underlying profit of just $30m for FY14 down from $365m in FY13, however Qantas International saw the biggest hit with an underlying loss of $497m compared with $246m in FY13

Jetstar had an underlying loss but I will focus on this in a separate post.

Qantas Freight made an underlying profit of $24m down from $36m in FY13, however Qantas Loyalty had the best result with an underlying profit of $286m up from $260m in FY13.

The Qantas Group expects to return to an underlying profit before tax in the first half of FY15 based on the following expectations:

• A target of $300m of Qantas Transformation benefits to be realised in the first half

• A stabilising operating environment, as market capacity growth subsides

• First half fuel costs in line with the first half of FY14

• The repeal of the carbon tax

• Reduced depreciation costs compared with the first half of FY14 

Fleet Changes

There are some interesting changes to the QF fleet coming out of this announcement.

QFi
- Gradual replacement of B747s with A330s on Australia to Asia routes including all SYD/BNE-SIN by Sept 2014
- Early retirement of 4x B747 with the remainder of the non-reconfigured B747s to leave by early 2016
- Push back the options on 50x B787 from 2016 into 2017
- Defer the delivery of the final 8x A380(previously announced)
- Defer the final 3 B787-8 deliveries for JQ (previously announced)

QFd - including QantasLink, Network Aviation, Jetstar and Jetconnect
- reduce turn time for domestic aircraft to improve utilisation
- refurbishment of B737-800 fleet to be completed by mid 2015, provides a total 3% capacity increase
- Early retirement of B767 fleet, to be gone by end of 2014!
- Retirement of Network Aviations fleet of Embraer Brasillia EMB120 effective immediately
- Retire 2x B738 due to increased utilisation, 1 to come from domestic 1 to come from Jetconnect
- Not renew lease on 2x A330-200s which will leave the fleet in early 2016
- 5x A320s ordered for Jetstar have been sold
- 2x QantasLink Q300 will be sold during FY15
- defer order for 21x A320 for Jetstar by 4 years and convert into order for 21x A320neo


Read all of the announcements to the ASX, including the media release, the CEO's address, the Investor presentation and the Fleet Update HERE

NZ announce strong profit

Its finical reporting season for Australasian aviation, and first out of the blocks was Air New Zealand reporting their third straight year of profit with a net profit of $262M(NZD).  This net profit represents a 45% increase on FY13.

Chairman Tony Carter said that the result represented the third consecutive year of strong earnings growth for the airline.  “This is a result Air New Zealand can be proud of. Our employees, our customers and our shareholders can be confident that Air New Zealand continues to be a world leading airline both in terms of customer experience and financial performance,” Mr Carter said.

Air New Zealand reported an 84.1% Load Factor for FY14 with 13,719,000 passengers carried.  This is mainly thanks to domestic passengers, with domestic capacity up 5.4% on the back of the replacement of the Boeing 737-300 fleet with Airbus A320s, and the introduction of new ATR 72-600s.  Domestic saw 8,920,000 passengers with a load factor of 81.1%.

FY15 will see the biggest increase in fleet numbers with a total of 10 aircraft entering the NZ fleet. 2x Boeing 787-9, 4x Airbus A320, 3x ATR 72-600 & 1x Boeing 777-300.  In the same period the remaining Boeing 747-400 will retire and the Boeing 737-300 fleet will dwindle to just 2 frames.

Read more on the Air New Zealand result via their releases to the New Zealand Stock Exchange 
- each section includes a downloadable pdf document
 - Media Announcement
 - Shareholder Review and Financial Report
 - Annual Results Fact Sheet
 - Results Analyst Presentation

NZ sign off on new A320neo family

As was widely expected Air New Zealand yesterday signed off on a $1.6b (list price) Airbus order at the IATA AGM in Doha.

The order is for 14 aircraft comprising 1 current gen A320, 10 A320neo and 3 A321neo.

The current generation A320 will be delivered by the end of 2015 and sit along side the current delivery of A320SL which are replacing the Boeing 733 on NZ main trunk domestic services.  There are still 5 of these to be delivered from the original order so that will mean 6 aircraft will be delivered in 2014/2015.

The new A321neo's will begin the delivery of the new aircraft in 2017 with all 13 neo's delivered by 2019.  This coincides with the end of lease of a lot of the original A320 fleet currently used on Trans-Tasman and Pacific Island flights.

Air New Zealand have yet to announce which of the neo (new engine options) they will choose to power the new A320/321s but are expected to reach a decision by december.

Read more from the announcement via Flight Global HERE

Half Year Interim Results The Winners and the Losers

The Winner

Air New Zealand are the big winners today announcing a half year interim normalised earnings of $180M NZD and an increase in passenger revenue, as well as a pre tax Statutory earnings of $197M NZD

The Loser

Qantas have today announced their underlying half year loss of $252M AUD before tax, with an action plan that will see job losses, fleet changes, and sale of terminal leases.

The Qantas changes
Qantas have announced that they have entered an agreement which will see the Brisbane Airport Corporation regain the lease of the Qantas Domestic terminal at Brisbane and related assets for $112M AUD.

Over the next three years Qantas will reduce their workforce by 5000 full-time positions which will include a reduction of 1500 management and non-operational roles, a restructure of line maintenance, as well as the already announced closure of the Avalon maintenance base and Adelaide catering base.  There will also be a reduction of operational roles relating to fleet and network changes, and the CNS flight crew base will close.

Qantas will make a change in timing to their MEL-DXB-LHR services from November 2014 to reduce on ground timing of the A380 in LHR.

Qantas will also end their PER-SIN services in first quarter FY15, while making all BNE-SIN and SYD-SIN services A330 replacing current B744 services.

Fleet Changes

Qantas will look to make savings up selling and differing up to 50 jets, this is broken up as follows;

• Boeing 767-300s - these will all be retired by Q3 FY15, following on from the retirement of the Boeing 737-400 fleet (see previous post)
• This will help Qantas standardise their domestic fleet to mostly 737-800 aircraft with Airbus A330 aircraft flying the East-West flights (SYD/MEL/BNE-PER) as well as peak services on the golden triangle (BNE/MEL/SYD) allowing the A332 fleet to operate International routes replacing B744s
• The 6 non-reconfigured Boeing 747-400 aircraft will be retired by the 2nd half of FY16 leaving just the 9 B744s with the A380 interior product.
• Deferral of the 8 remaining A380 orders (again)
• Deferral of the last 3 JQ B787-8 orders
• Restructring of the JQ A320 order book

Air New Zealand however will be adding aircraft;

• The A320 fleet will grow by 4 in FY14, 3 in FY15 and 2 in FY16 with the B733 retirements continuting with only 7 remaining in FY14, 2 in FY15 and all gone by FY16
• The B787-9s will arrive as follows FY15 3, FY16 3, FY17 2, FY18 2 this allows 3 of the B763 fleet to be retired by FY16 with the remaining 2 leaving in FY 17, while the last 2 744s will depart in FY15
• Two additional B773's will be delivered in FY15, 1 in 2014 and 1 in 2015
• 1 ATR76 will arrive in FY14, 3 in FY15 and the final one in FY16

The Releases

You can read the Qantas release to the ASX HERE and the Air New Zealand release to the NZX HERE, this story is also covered in almost every newspaper and website around.