As Qantas looks to cut back its international operations, Jetstar is set to step into the role as the new flying kangaroo.
Confirmed by chief financial officer Gareth Evans, nearly half of the group’s $2 billion in cuts will come from Qantas International, its worst performing arm at a loss of $262 million in the last six-months of 2013.
This could result in the national carrier being reduced to just a handful of “protected” international routes between Australia and the US and New Zealand, the Herald Sun reported.
The reduced services and routes would allow Qantas to reduce costs by transferring more of its operations to the budget based Jetstar whose model carries cheaper staffing and running costs.
After the launch of Jetstar Asia and the announcement that 14 new Dreamliner aircraft purchased by the group would go to the budget carrier rather than Qantas, Qantas former chief economist Tony Webber said it was “fairly clear the airline was working towards Jetstar taking on the bulk of its international work.”
“They really feel that Jetstar is the saviour of the company, and have grown Jetstar at a much faster pace,” Webber said, noting that although Jetstar Asia’s performance was poor, the time and effort invested into it was far greater.