Qantas Measures Following the Collapse of Ansett and Events in the USA

Qantas Airways Limited said today it was continuing to put in place a wide range of measures to counter problems created by the collapse of Ansett and the tragic events in United States of America.

Qantas Chief Executive Officer Geoff Dixon said these measures included obtaining aircraft on short-term lease to assist immediate capacity needs for mainline and regional flying, the hiring of additional staff to meet current and expected demand and a complete review of the needs of regional Australia.

Mr Dixon said that, from Friday morning until Sunday night, Qantas provided and arranged for 127 additional domestic services and carried about 180,000 passengers. Today, Qantas will carry over 60,000 passengers, 50 per cent more than an average Sunday.

"Obviously, many people have decided not to travel or have used other travel options, but we have, except for a few pockets, met passenger expectations," he said.

Qantas has also resumed flights to and from the USA. Yesterday, Qantas carried almost 1,300 passengers on four flights to Los Angeles and one to Honolulu. On Saturday night (Australia time), over 1,300 passengers returned to Australia from the USA, on three flights from Los Angeles and one from Honolulu. All these flights have landed. Today, Qantas has five flights to the USA (four to Los Angeles and one to Honolulu) and four scheduled from the USA to Australia.

Demand for travel to and from the USA, once stranded international passengers on the USA routes are uplifted, is expected to fall. This will allow Qantas to put 747-400 aircraft on domestic routes in the short term.

Mr Dixon stressed that Qantas had not increased passenger or freight charges.

"Obviously, there is currently a shortage of discount seats as we are inundated with demand and have accepted the obligation of returning Ansett passengers mid-journey free of charge," he said. "Discount fares will return to the market in full force once capacity has returned.

"The airline industry is in chaos worldwide because of the events in the USA and the global economic downturn. In Australia, on top of this, we have the cessation of Ansett flights

"We are fully conscious of the added responsibilities for Qantas and we will not, in any way, seek to take any unfair advantage of the current situation.

"We are in regular contact with the Federal Government, the State Governments, the Union movement, tourism and travel industry leaders and the Administrator of Ansett.

"Our people are working around the clock to ensure services are as close to normal as possible."

SPECIFIC QANTAS MEASURES:

Additional Capacity

* 127 additional services over three days - 44 on Friday, 32 on Saturday, 51 on Sunday;

* upgrading many services to increase capacity, for example from 737s to 767s and 747s;

* transferring 747s from international operations to domestic operations;

* using capacity on Cathay Pacific, our partner airline;

* planning to obtain aircraft on short-term lease for both mainline and regional services;

* expected low demand for travel to the USA will free up aircraft for domestic purposes.

Regional Australia

* 93 additional services over three days - 26 on Friday, 32 on Saturday and 35 today;

* another 50 additional services tomorrow, by which time Qantas will have provided and arranged for services to 22 destinations previously served only by Ansett and its subsidiaries;

* this includes services to 10 out of 14 destinations previously served only by Ansett and its subsidiaries in Western Australia.

Employment

* a register for Ansett staff to indicate their interest in employment with Qantas, with these staff to be given preferential consideration for new positions. This website received more than 3,000 hits yesterday and 766 registrations were received;

* a freeze on new hiring of overseas engineers;

* a commitment to continuing the training of more than 80 Ansett apprentices;

* employing over 200 Ansett customer service staff this week on a temporary basis and employing Gate Gourmet staff on a temporary basis;

* employing Ansett staff on a permanent basis will commence in coming weeks when we better know the outlook.

Measures for Ansett customers announced on Friday

* flights at no charge for Ansett customers who have commenced their journeys and find themselves without a means of returning home before 21 September.# Passengers affected should call Qantas on 13 13 13 to book their return journey;

* special domestic air fares# for travel until 31 October, for people who have purchased Ansett tickets but have not yet commenced travel;

* special air fares# discounted by up to 80 per cent for Ansett International customers who have purchased Ansett tickets for travel to and from Japan, Bali, Hong Kong and Fiji for travel until 31 October;

* a help line for Ansett customers on 13 22 23;

* a special Ansett information section on the Qantas web site at www.qantas.com.au

NOTE

# on presentation of an Ansett ticket or e-ticket receipt; subject to availability.