Qantas, Jetstar slash more flights due to downturn caused by coronavirus

The federal tourism minister says it’s “disappointing” Qantas has to slash international flights by 90 per cent due to fallout from coronavirus.

Qantas will slash international flights by 90 per cent as the company reels from the impact of coronavirus.

The company announced this morning about 150 planes will be grounded — which includes almost all its wide-bodied fleet — and there would be more cuts to Qantas and Jetstar services due to the pandemic.

But the government has so far ruled out bail-out packages to keep Qantas and its rival Virgin Australia afloat during the global crisis.

Qantas said total international capacity will be cut by around 90 per cent until May at least — a further 23 per cent reduction on cuts announced previously.

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READ MORE: Full list of flights cancelled by Aussie airlines

It said the reduction “largely reflects the demand impact of severe quarantine requirements on people’s ability to travel overseas”.

Meanwhile, domestic capacity across the group will be cut by 60 per cent until the end of May at least.

“This is a major increase from the five per cent reduction for the fourth quarter of FY20 and reflects a rapid decline in forward travel demand due to government containment measures, corporate travel bans and a general pullback from everyday activities across the community,” Qantas said in a statement.

“This represents the grounding of around 150 aircraft, including almost all of the group’s wide-body fleet.

“Previously announced cuts in place from end-May through to mid-September remain in place and are likely to be increased, depending on demand.”

The cuts follow federal government’s advisory against non-essential overseas travel, and the announcement of a mandatory two-week self-isolation period for returning travellers.

Federal tourism minister Simon Birmingham said he understood it was a difficult time for Australia’s largest airline.

“Qantas’ decision is disappointing but entirely understandable given the dramatic situation we’re seeing in terms of the downturn in international travel and the impact flowing through onto domestic travel as well,” Mr Birmingham said in a press conference on Monday.

“Both Australia’s airlines assure me that they are viable, they have strong cash reserves and they have plans to work through these unprecedented circumstances at present and it is critical that we make sure that we do have a strong air sector.

Qantas will cut international flights by 90 per cent as it responds to a downturn caused by coronavirus.

“That’s not negotiable in terms of being part of Australia’s recovery for the future and I acknowledge the fact that Qantas’s decisions are in part about ensuring that they preserve their operations so that they can be part of that recovery.”

Mr Birmingham said the federal government wasn’t considering a bail-out package for Qantas and Virgin Australia as the airlines “aren’t asking for that as present”.

“There are uncertainties ahead in terms of the depth, duration and scale of the crisis we face. That’s why government will continue to work with the airlines but, as I said before, having a strong airline sector in Australia in the future is not negotiable,” he said.

“We have to make sure that they are not only strong today, but strong in the long-term, because when we hit that recovery phase, we need the airlines to be able to scale up again quickly too.”

The cuts come a day after the Sydney-based CAPA Centre for Aviation warned many of the world’s airlines will be bankrupt by the end of May due to the ongoing effects of coronavirus.

It said the aviation industry would be crippled unless government worked quickly to act.

“As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants,” it said.

“Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full.

“Forward bookings are far outweighed by cancellations and each time there is a new government recommendation it is to discourage flying. Demand is drying up in ways that are completely unprecedented. Normality is not yet on the horizon.”

Qantas and Virgin Australia are offering special provisions to passengers whose travel plans have been disrupted by the coronavirus pandemic.

AIRLINES OFFER RELIEF ON BOOKINGS

Qantas and Virgin Australia are waiving cancellation fees and offering travel credit to passengers whose travel plans have been impacted by travel restrictions caused by coronavirus.

Qantas has told passengers they can cancel domestic and international flights booked up to May 31 and retain the value as travel credit.

“We understand that many people’s travel plans have been impacted by the spread of coronavirus and various government travel restrictions,” the airline said in a statement on Sunday.

“This situation is unprecedented, evolving and challenging for all involved. Whilst this is outside of our control, we are doing everything we can to support our customers.”

Meanwhile, Virgin Australia and Tigerair guests change flights to a later date and/or different destination without incurring a change fee.

It applies to domestic and international travel between now and June 30 for existing and new bookings.

If travel is within four weeks, Virgin Australia and Tigerair guests can also cancel domestic or international travel without copping a fee, and they’ll get the full value of the booking as a flight voucher.

Virgin Australia and Tigerair are also giving passengers the option of moving next to a vacant seat, where possible. Read more about the company’s virus policy here.

TRAVEL RESTRICTIONS STIFLE HOLIDAYS

Passengers have been arriving at Australian airports this week to strict a new rule that forces them to self-isolate for 14 days to limit the spread of coronavirus.

The new rule was announced by Prime Minister Scott Morrison on Sunday as part of a suite of measures designed to “flatten the curve” of the virus crisis.

It applies to all international arrivals, including returning Australians, and states and territories will enforce penalties for noncompliance.

“What we have seen in recent weeks is more countries having issues with the virus and that means that the source of some of those transitions are coming from those countries,” Mr Morrison said.

“We are seeking to assist Australians coming home by ensuring that the flights continue to run, but when they come home, they will be spending another 14 days in self isolation.

“If your mate has been to Bali and they come back and they turn up at work and they are sitting next to you, they will be committing an offence.”

It followed unprecedented new travel advice from the Department of Foreign Affairs and Trade on Friday that asks Australians to reconsider non-essential overseas travel due to the risk of transmission of coronavirus.