Qantas dumps Beijing route to cut costs

Qantas will pull its underperforming Sydney-Beijing flights from March as the airline gets serious about cost-cutting.

Alan Joyce announcing the Beijing service in January 2017. Picture: John Feder.

Qantas will pull its underperforming Sydney-Beijing flights from March as the airline gets serious about cutting costs.

The five-times-a-week flights were reintroduced as a daily service in 2017, before being wound back last October in the face of surging competitor capacity.

From March 2020, Qantas will no longer operate the route, citing weak business class demand and increased competition.

The axing follows chief executive Alan Joyce’s first-quarter trading vow to have a “strong focus on cost reduction” in a slower revenue environment.

Qantas International chief Tino La Spina said daily services to Shanghai would continue and the A330 used on Beijing routes would be deployed to existing destinations in Asia.

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“With Beijing, we’re responding to what the market is telling us,” Mr La Spina said.

He said beyond March, Qantas passengers would still be able to travel to Beijing on partner China Eastern “and be rewarded as they would when flying with us”.

Job cuts were also on the horizon for Qantas following the retirement of People and Culture CEO Lesley Grant in December, and the break-up of her department into other areas.

Numbers have not yet been determined, but a Qantas spokesman said they would be significantly less than the 1200 reported elsewhere.

The airline continued to push ahead with its planned ultra-long-range flights known as Project Sunrise, with a second test flight to depart London for Sydney on Thursday evening.

The Boeing 787-9 with special livery. Picture: Supplied.

The 18,000km trip would be undertaken by a brand new Boeing 787-9 named “Longreach”, emblazoned with special livery to mark the Qantas centenary next year.

It is not the first time Qantas has flown non-stop between the two cities, with a new Boeing 747-400 completing the journey in 1989 with 16 people on board.

Thursday’s flight will have 42 passengers, including Mr Joyce and medical researchers who will be testing pilots and crew for alertness and fatigue throughout the long journey.

Qantas 787-9 fleet manager Lisa Norman said the trip was ­expected to take about the same time as last month’s 19-hour New York-Sydney test flight, despite covering a greater distance.

CEO Alan Joyce has repeatedly said he will only schedule the flights between Australia’s east coast and cities like New York and ­London if the business case stacks up. Picture: Supplied.

Researchers’ findings will be used to devise crew rosters on existing long-haul flights like Perth-London as well as new services, should Project Sunrise get the green light.

Mr Joyce has repeatedly said he will only schedule the flights between Australia’s east coast and cities like New York and ­London if the business case stacks up.

Among the uncertainties were regulatory approval, the type of aircraft for the flights, and a new pay deal for pilots.

The Australian and International Pilots Association is awaiting an offer from Qantas, which wants a new enterprise agreement sorted by the end of the year.

AIPA members have indicated they are not willing to make significant concessions such as those given up in the previous 787-9 deal.

President Mark Sedgwick said whatever Qantas wanted would have to match with what pilots wanted.

Virgin Australia has also been paring back, with 750 roles in corporate and head office to go by early next year.

CEO Paul Scurrah announced a range of route cancellations last week, including Melbourne-Hong Kong, Sydney-Christchurch, Perth-Gold Coast and Canberra-Perth.