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Fuel costs leads Qantas to scrap flights

Credit Pacific Service Union Rising fuel costs have forced Qantas to cancel some of its flights to regional Tasmania and South Australia.

The restructure of Qantas Catering is expected to provide improvements in Earnings Before Interest and Tax (EBIT) in excess of $15 million per annum. Mr Dixon also said that Qantas was making solid progress towards its target of $3 billion of benefits through Sustainable Future for the five years to June 2008. "These reforms will lead to an improved cost structure in future years. However, if fuel prices continue at this level, further restructuring will be required, " he said.

Credit First Service Union Qantas Group General Manager Regional Airlines Narendra Kumar said Qantas would:

As one of the world¯ leading airlines, Qantas offers some of the most comprehensive, reliable and comfortable services in the sky. It provides an unrivalled choice of flights into Australia and New Zealand, as well as a great range of domestic flights.

Card Credit Mobile Service * cease operations to its two South Australian ports, Kangaroo Island and Port Lincoln, on 28 June;

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Card Credit Discover Service * cease operation to Burnie in Tasmania on 31 July;

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Credit Public Service Union * replace daily Qantas B737 Launceston-Melbourne services with double daily Dash 8 services on 1 August; and

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Card Credit Processing Service * maintain Jetstar's 21 A320 jet return services a week between Launceston and Melbourne.

Center Credit Service Union "The Qantas Group operates more than two million seats a year in and out of Tasmania, and more than 600,000 of them fly empty," Mr Kumar said.

Card Credit Service Wireless "Passenger numbers on the Burnie route have dropped by 20 per cent over the past two years and loads on Qantas B737 Launceston services have declined to below 60 per cent.

Credit Security Service Union "In the current environment of escalating fuel prices, we cannot continue to absorb losses on these routes.

Credit Report Service "Moving to double daily Dash 8 frequencies between Launceston and Melbourne will address the issue of excess capacity on the route and at the same time offer passengers better connections in Melbourne," he said.

Blogspot Com Christian Mr Kumar said that Jetstar would also continue to operate daily non-stop Launceston-Sydney service and three non-stop services between Brisbane and Launceston each week using its 177-seat A320 aircraft.

Christian Counseling Credit "The Group will provide more than 12,100 seats in and out of Launceston each week, with our Tasmania capacity seven per cent higher than it was two years ago."

Credit Federal Service Union Mr Kumar said that in South Australia, Port Lincoln loads had averaged only 45 per cent over the past two months, with Kangaroo Island services to Adelaide averaging 40 per cent and Kangaroo Island-Melbourne services only 25 per cent.

Credit Monitoring Service Mr Kumar said QantasLink would increase its turboprop capacity in regional Australia by 19 per cent in 2006/07, with plans to expand services to a range of destinations including:

Credit Division Service * Dubbo, Tamworth and Port Macquarie in New South Wales;

Card Credit Online Service * Longreach, Charleville and Roma in Queensland; and

Consumer Counseling Credit Inc * Mildura in Victoria.

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