Australia's Jetstar to cut capacity in January as pilots dispute drags on
FILE PHOTO: An airport worker stands in front of a Jetstar passenger plane at Avalon Airport in Melbourne in this March 19, 2010 file photo. REUTERS/Mick Tsikas/files/File Photo
SYDNEY - Budget airline Jetstar said on Monday it would cut domestic capacity by around 10% in January due to industrial action by pilots and it was considering the sale of three Boeing Co 787-8 jets serving loss-making international routes. The Qantas Airways Ltd subsidiary said the financial impact of disruptions by pilots and ground staff in December and January was estimated to be around A$20 million to A$25 million and had led it to do a broader review of its fleet and network, including its 787-8s.
“There’s no doubt that industrial action is expensive and frustrating, but we have to hold the line on costs or it threatens the long term sustainability of our business,” Jetstar Group Chief Executive Gareth Evans said in a statement.
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