Qantas Airways is taking extreme measures to cut its planes’ weight and pack in more paying travellers as its chief executive Alan Joyce works to return the carrier to profit.
The airline’s leaving behind life rafts for overland flights, draining any extra water from tanks and replacing bulky entertainment systems with iPads to save on fuel.
It’s even washing with hotter water to cut more grime, helping reduce drag, as it packs more passengers into economy class.
Faced with competition from the likes of Singapore Airlines and Virgin Australia, Qantas is following the path of other carriers in squeezing every possible dollar from its planes. Former American Airlines chief Bob Crandall used to boast about how removing a single olive from passengers’ meals saved the airline $40,000 in fuel. GoAirlines India said last year it would in future recruit only female flight attendants to save as much as 20kg per cabin crew.
“Little changes add up to millions of dollars,” said Gareth Evans, chief financial officer of Qantas, which had sales of A$14 billion (Dh44.9bn) in the year ended June and a net loss of A$2.8bn. “Medium-sized changes add up to tens and possibly even hundreds of millions of dollars.”
While airline earnings are forecast to hit a record this year on surging US sales, thin margins leave carriers vulnerable to economic setbacks, according to the International Air Transport Association (Iata). Carriers worldwide will post a net income of 2.4 per cent of projected sales in 2014, or $5.42 per passenger, Iata chief executive Tony Tyler said in June.
That makes innovation key to boosting earnings. In business class, Mr Joyce is introducing lie-flat seats that let high-paying passengers bed down during take-off and landing. In economy, he’s squeezing in more seats to maximize ticket sales.
Over the past two years, Mr Joyce has cut first class from most of Qantas’s Boeing 747s to add 52 seats; shrunk business class on its Airbus A380s to carry 34 more people; and swapped 737-400 jets for stretched 737-800s with four extra rows on domestic routes.
The 737-800s have an inch less legroom in economy class, according to travel site Seatguru.com, and will see their galleys and toilets slimmed down to cram one more row into coach from June.
While Qantas’s domestic and international carriers gave up a 10th of their aircraft in the two years that ended in June, passenger numbers fell only 3 per cent, according to Bloomberg News calculations based on company filings.
Cost savings helped the company bounce back from a A$646 million loss before tax and one-time items last year and return to an underlying profit in the first quarter, chairman Leigh Clifford told Qantas’s annual shareholder meeting in Melbourne on October 24. Qantas plans to lower annual expenses by A$2bn and cut 5,000 jobs by 2017.
“Earnings recovery will be driven by cost reduction in the short term,” he said. “Productivity has increased dramatically.”
Many of the airline’s moves centre on weight, with an eye toward reducing the A$4.5bn fuel bill.
Qantas announced plans on September 20 to remove heavy rubber rafts from 38 planes that fly domestic routes and don’t pass over water. A330s used on the 90-minute route between Sydney and Melbourne only have drinking-water tanks filled halfway, Mr Evans said in a phone interview. On routes to rural towns, Boeing 717s have iPads instead of built-in, seat-back entertainment systems, a tactic used by Singapore Airlines’ Scoot to save about two tons per plane.
“I haven’t noticed the difference,” said Nick la Galle, a Melbourne-based technology developer who runs a frequent-flier blog. “There’s a lot of practices they’re trying to streamline in the background that we as passengers don’t see.”
Qantas cut non-fuel expenses by 4 per cent on international flights and 3 per cent on domestic flights during the 12 months that ended in June, the company said. Qantas International planes will be airborne about 12 per cent longer each day, Mr Joyce told shareholders last month.
The carrier is still far from its fighting weight. After taxes and one-time items, it’s projected to post A$45.4m of losses in the current fiscal year, according to the average of 10 analysts’ estimates compiled by Bloomberg.
While yields - a measure of sales per seat, per kilometre - are rising, they’re recovering from a 17-year low last year. An about 19 per cent decline in jet fuel prices this year has just begun to pare the past decade’s more than 70 per cent jump.
The carrier still must keep an eye on costs, said Tony Webber, a former Qantas chief economist and managing director of Sydney-based Webber Quantitative Consulting.
“When you aggregate over all the flights an airline makes and the small margins in the sector, all the savings add up,” he said. “Small changes can make a hell of a difference.”
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Jawan
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War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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Heather, the Totality
Matthew Weiner,
Canongate
Last-16
France 4
Griezmann (13' pen), Pavard (57'), Mbappe (64', 68')
Argentina 3
Di Maria (41'), Mercado (48'), Aguero (90 3')
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
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Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
UAE currency: the story behind the money in your pockets
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Zayed Sustainability Prize
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
