Qantas reports decline in demand

Reuters has reported that the chief executive at Qantas, Geoff Dixon, is saying that although the carrier is experiencing a weakening of demand in all classes of travel, the airline is holding up better than many others. Dixon was speaking at the launch of its new A380 superjumbo service to Los Angeles.

In recent weeks, concerns about the impact of the global financial crisis on worldwide air travel have caused airline shares to drop, with Qantas shares falling by 14 per cent since the beginning of October, as compared to the average drop in the industry of 11 percent.

Passenger demand had already been impacted by rising oil prices earlier this year, when airlines increased their fares to help cover higher fuel bills. Oil prices have dropped by half during the ongoing credit crunch, however, since reaching a high in July.

On Monday, the Australian national carrier’s Airbus A380 will begin its Melbourne to Los Angeles service, and the Sydney to Los Angeles will commence on Friday.

The superjumbo has been configured to carry 450 passengers, with 14 in first class, and 72 in business class, where passengers will be seated in futuristic, silvery pods.

Qantas and other Airbus customers have had to wait for two years or more for their initial superjumbo deliveries, due to wiring problems encountered in the manufacture of the double-decker aircraft.

The first A380 came off the assembly line late in 2007. Another five will be delivered this year, according to Airbus, with two of them destined for Qantas.

Qantas will have a new chief executive from November of this year, when Alan Joyce, head of the Qantas subsidiary JetStar, takes over.

www.qantas.com.au