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qf789
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Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Wed Jun 24, 2020 11:36 pm

Qantas has announced via the ASX the changes that need to change due to the impact of COVID-19.

These include

Reduce workforce by 6,000 including 1500 from ground ops, 1450 from non operational roles, 220 pilots, 1050 flight attendants and 630 engineers

Retire all 747-400er’s 6 months early

Delay delivery of Qantas 787-9’s and Jetstar A321neo’s

Ground at least 100 aircraft for at least mid 2021

Reduce costs by $15 billion over the next 3 years then $1 billion annually

Some aircraft to be returned to lessors as leases expire

https://www.asx.com.au/asxpdf/20200625/ ... p3h22r.pdf
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Chipmunk1973
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Wed Jun 24, 2020 11:42 pm

Wow. I suspected they would reduce numbers, but that figure is higher then anticipated.
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Wed Jun 24, 2020 11:47 pm

Do we know what percentage of their flight attendant group 1,050 is?
 
eamondzhang
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Wed Jun 24, 2020 11:47 pm

Chipmunk1973 wrote:
Wow. I suspected they would reduce numbers, but that figure is higher then anticipated.

"Don't waste a good crisis"

Qantas must be taking the advantage to slim down some workforce and get the costs cut down in the long run - AJ is an expert in that

Michael
 
benjjk
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:00 am

In the press conference just now, Joyce said there will be no place for the A380's for 3 years.
 
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JBusworth
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:00 am

Well I guess that means that the 5 747 ERs in the US won't be returning home. When does VH-OEJ leave?
 
aschachter
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:01 am

eamondzhang wrote:
Chipmunk1973 wrote:
Wow. I suspected they would reduce numbers, but that figure is higher then anticipated.

"Don't waste a good crisis"

Qantas must be taking the advantage to slim down some workforce and get the costs cut down in the long run - AJ is an expert in that

Michael


I don't think Qantas are using COVID to slim down, they are trying to be realistic and come out at the other end, still in business.

It is terrible that people will lose jobs and the Travel Industry is one of the hardest hit and AJ has been stressing in the news conference that Qantas wanted to give certainty to its employees and we can see from other overseas airlines, none will be the same size as pre-COVID.
 
redroo
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:04 am

benjjk wrote:
In the press conference just now, Joyce said there will be no place for the A380's for 3 years.


They are writing down the value of the A380 by $1.2 to $1.4bn. Ouch. I’ll be amazed if they ever come back.
 
smi0006
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:10 am

Sack isn’t quiet accurate as many of these will be voluntary redundancies - makes sense, cash out whilst you can. Be interesting to see if they are willing to pay out more senior staff who will have incredibly expensive redundancy packages on legacy contracts.

Press release has breakdowns per role;

https://www.qantasnewsroom.com.au/media ... er-future/

Amazed this suprises people - there is literally minimal to nil flying in Australia atm... this has decimated the industry and careers. Devastating for all who work in the Australian industry.
 
QF744ER
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:28 am

Unofficially...have heard there's some talk of converting some 738's to freighters too.
 
aaway
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:49 am

aschachter wrote:
eamondzhang wrote:
Chipmunk1973 wrote:
Wow. I suspected they would reduce numbers, but that figure is higher then anticipated.

"Don't waste a good crisis"

Qantas must be taking the advantage to slim down some workforce and get the costs cut down in the long run - AJ is an expert in that

Michael


I don't think Qantas are using COVID to slim down, they are trying to be realistic and come out at the other end, still in business.

It is terrible that people will lose jobs and the Travel Industry is one of the hardest hit and AJ has been stressing in the news conference that Qantas wanted to give certainty to its employees and we can see from other overseas airlines, none will be the same size as pre-COVID.


Though COVID is the primary causal factor for industry restructuring, eamondzhang is right in a sense since QF faces the prospect of a recapitalized & slimmer Virgin Australia on the home turf. Even then, one has to wonder how much of a threat VA would be to QF.
"The greatest mistake you can make in life is to continually be afraid you will make one." - Elbert Hubbard
 
qf002
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:56 am

aaway wrote:
Though COVID is the primary causal factor for industry restructuring, eamondzhang is right in a sense since QF faces the prospect of a recapitalized & slimmer Virgin Australia on the home turf. Even then, one has to wonder how much of a threat VA would be to QF.


But if this is the impact on QF then you have to wonder how long VA can last in the current environment, even with a fresh balance sheet.
Last edited by qf002 on Thu Jun 25, 2020 12:56 am, edited 1 time in total.
 
sierrakilo44
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:56 am

QF744ER wrote:
Unofficially...have heard there's some talk of converting some 738's to freighters too.


The air freight business is actually an interesting one. I’m told it is usually more volatile than the passenger business, except of course in these COVID times. I would say by the time any freighter conversion is completed the passenger flying market would be back in strength (at least in the domestic market), but if so it would probably be no more than one or two aircraft, as the Qantas freight fleet only comprises 6 aircraft at the moment.

skylor wrote:
Do we know what percentage of their flight attendant group 1,050 is?


Not sure of the total percentage, but the surplus positions would be all on the 747 and some on the 380. I would imagine the JQ 787 fleet as well. Possibly QF 330 and 787 but they should be the first to return to flying once international flying recommences.
 
tullamarine
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 12:59 am

smi0006 wrote:
Sack isn’t quiet accurate as many of these will be voluntary redundancies - makes sense, cash out whilst you can. Be interesting to see if they are willing to pay out more senior staff who will have incredibly expensive redundancy packages on legacy contracts.

Press release has breakdowns per role;

https://www.qantasnewsroom.com.au/media ... er-future/

Amazed this suprises people - there is literally minimal to nil flying in Australia atm... this has decimated the industry and careers. Devastating for all who work in the Australian industry.

It will be a combination of voluntary and involuntary redundancies. Both flight and cabin crew on the 744s were on more expensive legacy contracts. It is unlikely they will have a choice and will be made redundant as it offers long term savings for the company.
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Whatsaptudo
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 1:07 am

Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement
Last edited by Whatsaptudo on Thu Jun 25, 2020 1:12 am, edited 3 times in total.
 
ben175
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 1:08 am

There are two main international cabin crew groups all consisting of different contracts - mainline (330/744) and QCCC (380/789). I assume the cut will be across the board of both divisions.
 
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 1:14 am

qf002 wrote:
aaway wrote:
Though COVID is the primary causal factor for industry restructuring, eamondzhang is right in a sense since QF faces the prospect of a recapitalized & slimmer Virgin Australia on the home turf. Even then, one has to wonder how much of a threat VA would be to QF.


But if this is the impact on QF then you have to wonder how long VA can last in the current environment, even with a fresh balance sheet.


Or wonder how long they put off announcing the full scale of redundancies at VA.
 
eamondzhang
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 1:18 am

sierrakilo44 wrote:
QF744ER wrote:
Unofficially...have heard there's some talk of converting some 738's to freighters too.


The air freight business is actually an interesting one. I’m told it is usually more volatile than the passenger business, except of course in these COVID times. I would say by the time any freighter conversion is completed the passenger flying market would be back in strength (at least in the domestic market), but if so it would probably be no more than one or two aircraft, as the Qantas freight fleet only comprises 6 aircraft at the moment.

That would be very interesting as QF is also introducing A321PCF. Guess this could help them speeding up the retirement of BAe-146 or 737-300, if one is ever planned.

Although I'm well aware of the ability for 146 fleet to fly to/from SYD during curfew - maybe they're edging for a 2:1 replacement to make it more efficient or something like that?

Michael
 
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 1:50 am

I feel for anyone looking for work now. Words are inadequate.

I cannot help but notice every recovery plan includes returning aircraft to leasors or retiring aircraft. This will be brutal on prior generation resale values, drop the price of stock for freighter conversions, and drop the pricing of used parts as well as minimizing demand for new parts.

This coronavirus will be felt in the industry for at least 7 years.

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

I noticed in the OP link that the majority if the write down was the A380s to fair market value. As the write down is $1.25 to $1.4 billion Australian dollars, we are looking at an A380 write down if about $800 million usd.

That is one step away from scrapping them.

Lightsaber
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 2:00 am

ben175 wrote:
There are two main international cabin crew groups all consisting of different contracts - mainline (330/744) and QCCC (380/789). I assume the cut will be across the board of both divisions.

Wouldn't Jetconnect be a group to consider? Non Ozzie crew...
 
32andBelow
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 2:11 am

lightsaber wrote:
I feel for anyone looking for work now. Words are inadequate.

I cannot help but notice every recovery plan includes returning aircraft to leasors or retiring aircraft. This will be brutal on prior generation resale values, drop the price of stock for freighter conversions, and drop the pricing of used parts as well as minimizing demand for new parts.

This coronavirus will be felt in the industry for at least 7 years.

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

I noticed in the OP link that the majority if the write down was the A380s to fair market value. As the write down is $1.25 to $1.4 billion Australian dollars, we are looking at an A380 write down if about $800 million usd.

That is one step away from scrapping them.

Lightsaber

A lot of industries worldwide needed a pricing reset anyways. Glad to see prices coming down in lots of industries.
 
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 2:18 am

JBusworth wrote:
Well I guess that means that the 5 747 ERs in the US won't be returning home. When does VH-OEJ leave?


Departs SYD June 30, last flight LAX-MHV on July 1.
https://docs.google.com/spreadsheets/d/ ... edit#gid=0

Just a normal teenager juggling AP classes and airplanes. No biggie • Love the 747 & 777-9 • Farewell KLM 747-400M
 
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 2:20 am

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement


They have said Mojave desert as well as "Mojave's aviation 'boneyard,'" I presume that means MHV? An earlier article I read said they were considering MHV or VCV for storing their A380s.
https://docs.google.com/spreadsheets/d/ ... edit#gid=0

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Morrofinch
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 2:27 am

2GB reporting that by the end of this year, especially if domestic borders stay closed for longer (2nd wave), the cuts will "possibly double"
 
redroo
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 4:15 am

anstar wrote:
qf002 wrote:
aaway wrote:
Though COVID is the primary causal factor for industry restructuring, eamondzhang is right in a sense since QF faces the prospect of a recapitalized & slimmer Virgin Australia on the home turf. Even then, one has to wonder how much of a threat VA would be to QF.


But if this is the impact on QF then you have to wonder how long VA can last in the current environment, even with a fresh balance sheet.


Or wonder how long they put off announcing the full scale of redundancies at VA.


All the talk of no redundancies at VA is fantasy. If QF is shrinking you can be sure Virgin will have to shrink... or go out of business.
 
myki
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 4:47 am

skylor wrote:
Do we know what percentage of their flight attendant group 1,050 is?

I'm not sure how many cabin crew they have at QF. They may be the face of the airline with the only human interaction travellers have these days (everything else is online), but generally for an airline even adding cabin crew and pilot numbers together you still wouldn't reach 50% of staff (may be different for QF though).
 
32andBelow
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 4:56 am

myki wrote:
skylor wrote:
Do we know what percentage of their flight attendant group 1,050 is?

I'm not sure how many cabin crew they have at QF. They may be the face of the airline with the only human interaction travellers have these days (everything else is online), but generally for an airline even adding cabin crew and pilot numbers together you still wouldn't reach 50% of staff (may be different for QF though).

I bet you’d reach 50% of staff expense tho
 
DDR
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 5:12 am

And more A380s and 747s are gone. The aviation landscape is becoming boring.
 
tullamarine
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 5:34 am

DDR wrote:
And more A380s and 747s are gone. The aviation landscape is becoming boring.

At the moment we get excited if we see a 737 or A320 flying!
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 8:24 am

ZKSUJ wrote:
ben175 wrote:
There are two main international cabin crew groups all consisting of different contracts - mainline (330/744) and QCCC (380/789). I assume the cut will be across the board of both divisions.

Wouldn't Jetconnect be a group to consider? Non Ozzie crew...

Why Jetconnect when its a lower cost mainline division with crews for all types of aircraft in service including the now retired 744
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flyjay123
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 8:44 am

I wonder if they will close the London crew base.
 
TC957
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 8:46 am

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

Just after they've spent millions on having them refurbed as well. Such terrible timing.
 
anstar
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 9:07 am

flyjay123 wrote:
I wonder if they will close the London crew base.


If they aren't going to be flying there for 12+ months then I wouldn't be surprised if they did.
 
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 9:30 am

32andBelow wrote:
lightsaber wrote:
I feel for anyone looking for work now. Words are inadequate.

I cannot help but notice every recovery plan includes returning aircraft to leasors or retiring aircraft. This will be brutal on prior generation resale values, drop the price of stock for freighter conversions, and drop the pricing of used parts as well as minimizing demand for new parts.

This coronavirus will be felt in the industry for at least 7 years.

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

I noticed in the OP link that the majority if the write down was the A380s to fair market value. As the write down is $1.25 to $1.4 billion Australian dollars, we are looking at an A380 write down if about $800 million usd.

That is one step away from scrapping them.

Lightsaber

A lot of industries worldwide needed a pricing reset anyways. Glad to see prices coming down in lots of industries.


Wait till you see the values of commercial real estate worldwide in the coming months.
Thanks and best Regards
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Kieros
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 10:17 am

VCVSpotter wrote:
JBusworth wrote:
Well I guess that means that the 5 747 ERs in the US won't be returning home. When does VH-OEJ leave?


Departs SYD June 30, last flight LAX-MHV on July 1.


I've heard its now moved more to the middle of July - roughly July 22, but definitely no longer slated for June 30..
 
mxaxai
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 10:24 am

TC957 wrote:
Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

Just after they've spent millions on having them refurbed as well. Such terrible timing.

On the one hand, some of them just received brand new seats. I think some of them haven't even seen service yet since their refurbishment.

On the other hand, their main destinations are the US and the UK, both of which are being hit hard by COVID19 and are taking very lackluster containment efforts. I'm curious, though, why they would choose Mojave Desert; there's plenty of desert in Australia (e. g. Alice Springs, SQ's storage airport of choice).
 
ZKSUJ
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 11:01 am

777ER wrote:
ZKSUJ wrote:
ben175 wrote:
There are two main international cabin crew groups all consisting of different contracts - mainline (330/744) and QCCC (380/789). I assume the cut will be across the board of both divisions.

Wouldn't Jetconnect be a group to consider? Non Ozzie crew...

Why Jetconnect when its a lower cost mainline division with crews for all types of aircraft in service including the now retired 744


Because Jetconnect Long Haul won't be flying for a long while. I was meaning long haul crew who aernt on the 737
 
zkncj
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 11:08 am

777ER wrote:
ZKSUJ wrote:
ben175 wrote:
There are two main international cabin crew groups all consisting of different contracts - mainline (330/744) and QCCC (380/789). I assume the cut will be across the board of both divisions.

Wouldn't Jetconnect be a group to consider? Non Ozzie crew...

Why Jetconnect when its a lower cost mainline division with crews for all types of aircraft in service including the now retired 744


JetConnect will be an interesting one, I would think with there lower cost base they will keep the crew but extended there stand down period.

JetConnect also provide crew for Jetstar in New Zealand, with services resuming from 1 July.

New Zealand Domestic does provide some opportunity for the Qantas group, to bring in some revenue. Over the next 3-6months, demand has been strong, and NZ has even been running 787s Domesticly.
 
soyuz
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 11:32 am

mxaxai wrote:
TC957 wrote:
Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

Just after they've spent millions on having them refurbed as well. Such terrible timing.

On the one hand, some of them just received brand new seats. I think some of them haven't even seen service yet since their refurbishment.

On the other hand, their main destinations are the US and the UK, both of which are being hit hard by COVID19 and are taking very lackluster containment efforts. I'm curious, though, why they would choose Mojave Desert; there's plenty of desert in Australia (e. g. Alice Springs, SQ's storage airport of choice).


I believe there is no space to store any more aircraft at Alice Springs. There is a plan to double the amount of storage bays but when that will eventuate I’m not sure.
 
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 11:40 am

lightsaber wrote:

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

I noticed in the OP link that the majority if the write down was the A380s to fair market value. As the write down is $1.25 to $1.4 billion Australian dollars, we are looking at an A380 write down if about $800 million usd.

That is one step away from scrapping them.

Lightsaber


I have to wonder how they argue these will have any economic value in three years, to avoid a complete write down today. There will have been plenty of frames scrapped by then to support all conceivable parts demand.

Anybody deeply familiar with Australian accounting rules for impaired assets?
 
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Chasensfo
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Joined: Wed Jan 02, 2013 2:07 am

Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 11:42 am

The mentioned 747s that are in the US at the moment, are those in LAX or already stored in VCV or MHV?

I will attempt to get down to MHV for the QF 747 arrival in July and the A380s as well if they end up there.
 
32andBelow
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 1:43 pm

MIflyer12 wrote:
lightsaber wrote:

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

I noticed in the OP link that the majority if the write down was the A380s to fair market value. As the write down is $1.25 to $1.4 billion Australian dollars, we are looking at an A380 write down if about $800 million usd.

That is one step away from scrapping them.

Lightsaber


I have to wonder how they argue these will have any economic value in three years, to avoid a complete write down today. There will have been plenty of frames scrapped by then to support all conceivable parts demand.

Anybody deeply familiar with Australian accounting rules for impaired assets?
AUS to US seems like one of the only routes an a380 actually makes sense. Unless they want to change their US strategy to flying 787s directly to more cities.
 
ltbewr
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 3:52 pm

Qantas is doing what every other airline is doing, trying to survive short to medium term until the end of the pandemic as well as for years afterwards. It is painful for people and fans of certain aircraft, but it has to be done.
Even when the Pandemic ends, the long term economic damage, a near for full Depression, will kill of most travel, family, leisure and business for years so airlines will try to max fare revenues by cutting frequencies, use smaller planes, squeeze more pax in remaining smaller planes, ditch some destinations, reduce fleet sizes and where possible get rid of a lot employees, pay them less, shift more work to outside contractors. For sure airlines will use the reductions to rid of high MX and fuel guzzling aircraft, especailly any 4 engined ones like the A380, B747, A340's and older, less efficient 2 engines ones too.
 
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VCVSpotter
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 3:52 pm

Kieros wrote:
VCVSpotter wrote:
JBusworth wrote:
Well I guess that means that the 5 747 ERs in the US won't be returning home. When does VH-OEJ leave?


Departs SYD June 30, last flight LAX-MHV on July 1.


I've heard its now moved more to the middle of July - roughly July 22, but definitely no longer slated for June 30..


Ok. I was told a similar thing this morning, thanks for the tip.
https://docs.google.com/spreadsheets/d/ ... edit#gid=0

Just a normal teenager juggling AP classes and airplanes. No biggie • Love the 747 & 777-9 • Farewell KLM 747-400M
 
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VCVSpotter
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Joined: Mon May 04, 2020 6:10 am

Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 3:54 pm

Chasensfo wrote:
The mentioned 747s that are in the US at the moment, are those in LAX or already stored in VCV or MHV?

I will attempt to get down to MHV for the QF 747 arrival in July and the A380s as well if they end up there.


VH-OEJ is the only remaining Qantas 747 not at MHV yet. The remaining 747-400ERs are stored at MHV (besides VH-OEF, which was retired to SBD earlier this year). The retirement date is now allegedly around July 22. I've been told that the A380s will ferry to MHV over the 'next few weeks.'
https://docs.google.com/spreadsheets/d/ ... edit#gid=0

Just a normal teenager juggling AP classes and airplanes. No biggie • Love the 747 & 777-9 • Farewell KLM 747-400M
 
RainerBoeing777
Posts: 567
Joined: Wed Jun 21, 2017 3:43 pm

Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 4:23 pm

which routes Qantas will eliminate with the departure of the A380 it is impossible for the 14 B787s to replace the B747 & A380
CX - JL - LH - KE - KL - SQ - QR - QF - TG - UA
 
smartplane
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Joined: Fri Aug 03, 2018 9:23 pm

Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 8:23 pm

MIflyer12 wrote:
lightsaber wrote:

Whatsaptudo wrote:
Looks like all 12 A380's are going to Mojave now. 3 years is optimistic I think, and really only indicates that the current 3 year plan (what was released this morning), doesn't include the A380 at all. I suspect its finished.

https://www.executivetraveller.com/news ... retirement

I noticed in the OP link that the majority if the write down was the A380s to fair market value. As the write down is $1.25 to $1.4 billion Australian dollars, we are looking at an A380 write down if about $800 million usd.

That is one step away from scrapping them.

Lightsaber


I have to wonder how they argue these will have any economic value in three years, to avoid a complete write down today. There will have been plenty of frames scrapped by then to support all conceivable parts demand.

Anybody deeply familiar with Australian accounting rules for impaired assets?

If scrapped now, will trigger covenant breaches / credit re-write / re-pricing. The argument for not taking this action now, is we got here quickly - recovery, when recovery occurs, could be as quick.
On a global basis, if every airline took decisive accounting action in respect to 'resting' aircraft unlikely to see commercial service again, we could add a banking crisis to the World's current problems, and even more OEM and airline industry redundancies.
 
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william
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 8:34 pm

If no more A380s, what will fly between SYD and LAX? SYD and DFW?
 
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VCVSpotter
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Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 8:37 pm

william wrote:
If no more A380s, what will fly between SYD and LAX? SYD and DFW?


They'll most likely be using 787-9s.
https://docs.google.com/spreadsheets/d/ ... edit#gid=0

Just a normal teenager juggling AP classes and airplanes. No biggie • Love the 747 & 777-9 • Farewell KLM 747-400M
 
ZK-NBT
Posts: 7537
Joined: Mon Oct 16, 2000 5:42 pm

Re: Qantas to sack 6000 employees, ground 100 aircraft until mid 2021, retires 747 fleet early

Thu Jun 25, 2020 8:37 pm

RainerBoeing777 wrote:
which routes Qantas will eliminate with the departure of the A380 it is impossible for the 14 B787s to replace the B747 & A380


Possibly none, maybe 1-2 ex BNE/MEL to focus on SYD again. It’s not impossible for the 14 787s to replace free A380 and 744 even the 787 isn’t flying atm.

Realistically not all the routes are going to restart at the same time though either, while there is a chance the A380 will come back at least some of them.

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