The Qantas Group says last week that it has the flexibility to further cut capacity if demand growth continues to weaken after announcing plans to reduce plane deliveries and slash spending by AUD700 million (USD738.5m).
The airline is cutting capital expenditure and cancelling or deferring orders for 12 narrow-body jets as it reduces its capacity growth for 2011-12 from 8 percent to 5.5 percent.
The airline will cut capital expenditure by AUD100m this financial year and AUD300m in 2011-12, with an additional AUD300m expected to flow from reduced leasing commitments.
(Source: The Australian)