Aviation: Qantas to cut routes, dump B747s, reduce headcount

Qantas insists that it has to "close the costs gap" between its maintenance expenses and those of its competitors with

"- 60-day pre-decision consultation process on Qantas’ Australian heavy maintenance footprint, to address declining work volumes resulting from new aircraft technology and work processes. - Changes to line maintenance processes with the introduction of a more tailored system for next-generation aircraft operating domestically. - Consolidation of a range of engineering functions for greater efficiency.

But is is also undertaking a review of its catering arrangements.

[the] catering business will consolidate to focus on four core facilities in Sydney, Melbourne, Brisbane and Perth, through the following actions.

- Qantas will not invest in a new catering centre for Adelaide when the current facility’s lease expires in March 2013. Consultation will take place with employees and other stakeholders about future catering options in Adelaide. - Discussions on the potential sale of one of Qantas’ two Sydney catering centres (Riverside) and its Cairns catering centre. - Changes to work processes in Q Catering Brisbane ahead of the move to a new centre.

In the human resources department, sections that are currently "dispersed around individual airports" will be centralised in Sydney.

There will be route cancellations and changes:

- Withdrawal from the Singapore-Mumbai and Auckland-Los Angeles routes, effective 6 May 2012. This is in addition to previously-announced withdrawals from the Hong Kong-London and Bangkok-London routes, effective March 2012.

- Aircraft changes on the following international and domestic routes: Sydney-Bangkok (Boeing 747 replaced with Airbus A330 from 10 June), Sydney-Perth (Boeing 747 replaced with Airbus A330 on certain services from 6 May) and Melbourne-Perth (additional A330 services added from 6 May).

- Capacity increases on the Los Angeles-New York route from 6 May (Airbus A330 replaced with Boeing 747) and Sydney-Tokyo route from 10 June (one Airbus A330 service per week replaced with a Boeing 747 service, resulting in daily Boeing 747 services).

- Early retirement of two further Boeing 747 aircraft (in addition to the four early B747 retirements announced in August 2011).

Quantas is, therefore, dramatically reducing its remaining B747 fleet and seemingly basing one in the USA full time.

Qantas says that the delay in Boeing's 787-800 is acting as a costs saving measure.

The airline has announced increases in fares and fuel surcharges. And, the company says "Group forward bookings continue to indicate higher yields in the second half of 2011/12 compared with the second half of 2010/11."

But there will be 500 jobs lost. More will go as the B747 fleet is retired and other aircraft mothballed.