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Qantas axes Auckland-LA flights

Qantas flights between Los Angeles and Auckland have been put on the chopping block following its latest profit results.

Australian airline Qantas will also be axing around 500 jobs after a review of its maintenance and catering businesses, early retirement of aircraft and the abandonment of two major international routes.

As part of Qantas’ cost-cutting plans it will be scrapping its Auckland to Los Angeles services from May 6 following an 83% slump in half-year profits.

The airline reported today an 83% fall in its first half net profit to $A42 million to December 31, 2011, down from $239 million in the same period last year.

It has also said it will slash capital expenditure by $200 million in the 2011/12 financial year and cut $500 million from spending in 2012/13.

Redundancies within the airline are also part of cost cutting aimed at countering economic volatility.

“Job reductions are expected as a result of aircraft retirements and operational changes within the airline,” said the airline.

There are no further plans to move operations offshore, said chief executive Alan Joyce.

“With aircraft retirements, there is simply not enough heavy maintenance work to justify the three facilities in Melbourne, Brisbane and Avalon,” he said.

More by Robert McCambridge

Comments and questions
20

Joyce needs to go.

Thant's a huge drop in profitability.

Now we will all get screwed by Air NZ

If you compare Air NZ's prices with Qantas you will find its Qantas that screws everyone across the pacific.

New, better planes and the service is stunning. And there options for everyone and their budget

Agree 100% - Recently I flew Quantas from Thailand to London, never again. So I purchased AIRNZ via LA back to nz. The service was amazing, much more leg room for us tall people and the plane was almost brand new, night and day service comparason!

hope emirates,singapore or Etihad pick it up

Sad to hear. Flew Qantas direct from Auckland to JFK, New York in June last year (direct is different from non-stop). Was pretty decent. Air NZ has nicer planes but direct aspect worked well.

Two years ago, I was 200 points shy of continuing my Silver status and I had a flight booked 2 months in advance but they refused to allow me to stay on Silver. I have never flown with them again for the pettyness, AND I am a Life Member.
Inflexibility and not looking after their top paying customers, was a slippery slope to doom

Sorry Chris, Silver doesn't rate with them as far as giving such leeway (too many out there) but as a long-term Platinum member I can assure you that they certainly go 'the extra mile" with their top-tier flyers.

Just handed the route to AirNZ. But isnt Continental starting a Houston - AKLD route soon (November) ?

It's always pathetic to see the Air NZ marketing department pop in to leave some nonsense about how wonderful they are. At least learn how to spell "Qantas" properly next time you troll.

Troll? Get over yourself. Have you ever flown Qantas or Air NZ LongHull?

You know you just trolled...

Qantas is crap !

usa dont need anymore cow cockies/gumboots on hollywood boulevard stay on the farm and continue the slave trade of share farming

usa dont need anymore cow cockies/gumboots on hollywood boulevard stay on the farm and continue the slave trade of share farming

This is such a pity, Qantas has been great over the years and at least there are still options for premium service on the Tasman with them. Hope to see them back. Maybe Emirates will step in so that Kiwis have a premium airline option between Auckland and LA.

losing a million dollars a week (minus ceo and top manager bonuses of course)

imagine how much money air nz would save if it didn't pay a legion of 20 somethings to police social media for disobedience

I work for Air NZ and its disappointing to see some comments above. QANTAS have not 'handed over the route' to Air NZ. In this industry nothing is handed to anyone - its a war where success/failure is measured in degrees of inches. Air NZ is on a long process of change and you can see that as a customer in terms of product and services - from new aircraft, interiors, web based initiatives, crew uniforms, prcicng on the tasman - seats to suit. I am sure we cant please everyone and each has an opinion. I hope that some folk dont forget that on the AKL - LAX route we operate at pricing levels in real terms about the same levels as the early 90's - our costs are very much 2012! I think QANTAS have temporarily been bettered by a better operator yet I have no qualms that another aitline will fill the void.