Jetstar plots 787-8 offload

JETSTAR looks set to wind back its international flight network, after a network and fleet review identified three Boeing 7878 aircraft which are currently serving “loss-making and marginal international routes”.

A potential plan to offload these planes was detailed this morning in an update from Jetstar CEO Gareth Evans, who said the review was part of contingency planning for ongoing industrial action being undertaken by pilots and ground crew.

“A business case has been developed to sell these three aircraft, with capital to be reinvested in other parts of the Qantas Group or returned to shareholders,” Evans said.

A final decision on the sale of the 787s will be made in the first quarter of 2020, he added.

MEANWHILE Evans has estimated that the current industrial campaigns will have a financial impost of up to $25m.

Jetstar will reduce its domestic capacity during Jan, cancelling about one in 10 services across Australia “to avoid disrupting customers at short notice”.

Evans said both the Australian Federation of Air Pilots (AFAP) and Transport Workers Union (TWU) were “pursuing wage claims that are unsustainable”.

He said third party suppliers could fill TWU gaps for tasks such as loading bags and operating tugs, while contingencies for pilot walkouts include consolidating flights and transferring passengers onto other airlines, including Qantas, where feasible.

The AFAP has indicated it does not intend to take strike action between 20 Dec and 03 Jan.

Customers already booked on cancelled flights will be contacted in the coming days with alternatives, including offers of full refunds.