Qantas Is Swapping Planes With Jetstar To Lower Its Costs Against Virgin

Getty/Sean Gallup

Qantas’ new Boeing 787 Dreamliners begin arriving tomorrow, and they are going to its low-cost carrier Jetstar — in a move that will lower costs against rival Virgin.

According to The Australian, Qantas will then take Jetstar’s 11 Airbus A330-200s between now and late 2015, which is can use to replace its fuel-hungry Boeing 767s.

Qantas boss Alan Joyce says the fuel-efficent 787s will allow it to cut domestic mainline costs by 10 percentage points.

“Qantas mainline will only be operating A330-200s and 737-800s by 2015 when this is all done, and that gives us a huge cost reduction. We think our cost base will get down to below 5 per cent compared to where Virgin is and that’s a big movement.”

Read more at The Australian.

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