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Qantas cuts back capacity – pain to come for smaller destinations

29-May-2008

Qantas yesterday moved to reduce capacity in its domestic market, in the early stages of what will probably become a flood of airline cutbacks across the region, if fuel prices remain at current levels. Last week Korean Air announced relatively small cutbacks on some international routes, Air New Zealand’s CEO talked of parking some aircraft if the present conditions continue and other airlines are inevitably considering either grounding aircraft or delaying delivery of new orders. [530 words]

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