FED: Airlines rush to cut capacity amid financial turmoil

AAP General News (Australia)
02-18-2009
FED: Airlines rush to cut capacity amid financial turmoil

The global economic crisis is wreaking havoc in aviation .. with Qantas .. Virgin Blue
and Singapore Airlines all dramatically cutting capacity in the last 48 hours.

Late yesterday .. Virgin Blue announced a significant restructure that will affect 400 staff.

Australia's second biggest airline says it'll remove eight per cent of capacity ..

or as many as five aircraft .. from its domestic fleet in the coming financial year.

Virgin says it'll consider all possibilities .. including job-sharing and shifting
some staff to international start-up V Australia .. before sacking workers.

News of Virgin's troubles came only hours after Qantas announced a significant restructure
of its flight schedule.

Low-cost offshoot Jetstar will replace the flying kangaroo throughout New Zealand's
domestic market from June 10 and the schedules for China and India will be overhauled.

On Monday .. Singapore Airlines confirmed it'll cut capacity by 11 per cent from April
.. and also decommission 17 planes.

AAP RTV pv/af/fdf

KEYWORD: AVIATION (CANBERRA)

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