Qantas Adjusts Capacity

Australian carrier, the Qantas Group, has announced today (June 15) an adjustment in planned domestic capacity and a reduction in capital expenditure for the next two years.
The news comes after slower growth rates have been seen in the domestic market, causing the Group to target 5.5% domestic capacity growth for 2011/12 compared with the previous 8%.
Capital expenditure will also be reduced by a combined $400 million until the end of the financial year 2011/12.  Planned leased aircraft commitments will also be decreased by $300 million.
The Qantas Group will now take delivery of 34 aircraft in 2011/12 compared with the 43 previously planned.  Orders for 12 narrow-body jet aircraft will now be cancelled or deferred.
The Group believes that these changes will maximise its competitive position in the domestic market.  CEO Alan Joyce says:  “The Qantas Group has always taken decisive action to match capacity to demand.
“We are well-placed to retain our profit-maximising 65% domestic market share.  Our extensive fleet renewal strategy will support growth and improve product for the airline.”