Jetstar’s Big Barging: Capacity Cuts and a Possible Jet Sale
In a bold bid to keep its balance sheet healthy, Jetstar is trimming its domestic flights by roughly 10 % in January. The Sydney‑based low‑cost carrier is also weighing the sale of three Boeing 787‑8s to tide over the cost of a looming pilot walk‑out.
What’s the Current Standoff?
- December 14 & 15 – Two four‑hour stand‑ups by Jetstar’s main pilot union.
- Ongoing bans on lower‑level flights until next Friday.
- No strikes planned over the upcoming Christmas and New Year holidays.
Afap, the union that represents most of Jetstar’s pilots in Australia, has said the action will stop after Friday. They’re urging the airline back to negotiation tables to secure a fair deal.
Financial Fallout
Jetstar’s own numbers come in at around A$20 million to A$25 million in losses caused by the disruptions. Chief Executive Gareth Evans is keeping the conversation anchored: “Industrial action is expensive and frustrating, but we must lock in costs or we risk the long‑term viability of the business.”
Asset Flexibility
From a strategic viewpoint, Jetstar is looking at selling three of its 11 Boeing 787‑8s. These aircraft have been floppier on international routes, and the proceeds would be re‑invested either back into the broader Qantas Group or fed back to shareholders.
