Qantas has offered voluntary redundancies to all 7000 of its cabin crew in a bid to reduce its costs.
Chief executive Alan Joyce says Qantas is facing its most serious challenge since the peak of the global financial crisis.
“We need to act decisively to respond to rising fuel costs and natural disasters, just like we did during the global financial crisis, to ensure the ongoing sustainability of our business,” he told ABC online.
Yesterday the airline announced its international unit carried 509,000 passengers in April 2011, up 7.4 percent from April 2010.
That announcement coincided with the release of a US study of ancillary revenue – charges such baggage, choice of seat and meals – which placed Qantas fourth in the world for revenue raised in this way.
Qantas earned about $1.5 billion in 2010 as a result of the charges, consultancy firm IdeaWorks found, placing it fourth below US airlines Delta, American and United.
According to the report, Qantas earns about $US37 from each passenger, second only to Air Asia X. And the charges keep coming.
Jay Sorensen, of IdeaWorks, said, “I think that baggage – hold baggage or checked baggage – is going to be the major contributor of ancillary revenue.
“We have identified more than 30 different activities that are being done by airlines somewhere in the world, but the core contributor is going to be two categories; the revenue from the frequent flyer programme and the revenue associated with checked baggage.â€
Qantas this week introduced a new system of charging for baggage. Each passenger will get a 23-kilogram allowance for one piece of luggage. Extra pieces will be charged even if the total weight is less than 23 kilos.
Ingrid Just, of Choice magazine, told then ABC’s PM programme, “We’re seeing surcharges for simply using your credit card to pay online.
“There are surcharges for choosing a seat. We heard only recently that Jetstar announced they will be bringing in a surcharge if you want to check in face-to-face without using their new mobile service.â€
