Qantas dismisses call for Joyce’s resignation, after airline flags further job losses
Qantas has dismissed a call by the Transport Workers’ Union (TWU) for chief executive Alan Joyce to resign, off the back of 2,500 further job losses being announced by the airline.
Despite receiving more than $500 million in government support, Qantas announced on Tuesday that along with Jetstar it was reviewing whether to outsource its ground handling operations at the 10 airports where the work is done in-house, and its bus services for customers and employees around Sydney Airport.
The Qantas Group said such a move would affect 2,420 employees across Qantas and Jetstar, on top of the 6,000 job cuts already announced, and would save the group an estimated $100 million in operating costs each year.
Qantas Domestic chief executive Andrew David said the COVID-19 pandemic is “the greatest challenge the aviation industry has ever faced and airlines have to change how they operate to ensure they can survive long-term”.
“[Tuesday’s] announcement will be very tough for our hard-working teams, most of whom have already been stood down for months without work,” he said.
“This obviously adds to the uncertainty but this is the unfortunate reality of what COVID-19 has done to our industry.”
The announcement follows a net loss of $1.9 billion for the group in FY20 and a $4 billion drop in revenue in the second half of the year due to the COVID-19 pandemic and associated border restrictions.
Qantas said further significant losses are projected in FY21 and an at least $10 billion drop in revenue due to the ongoing impact of the COVID-19 pandemic.
However, the Transport Workers’ Union (TWU) described the latest decision by Qantas as “economic violence” and called for the airline’s chief executive, Alan Joyce, to resign.
“There is no dividend for the public if a company like Qantas can sack thousands of workers after receiving such financial support,” the union’s national secretary, Michael Kaine, said.
“If Alan Joyce’s only plan is to wield the axe on thousands of loyal staff, he should resign.
“This is not shrewd management, it is economic violence. Qantas has taken millions in JobKeeper wage subsidies, more than any other company, with the express intent of keeping people employed.
“But now Alan Joyce wants to destroy thousands more livelihoods. This is callous abuse of public money. The chief executive must resign.”
It comes as the TWU today meets Qantas in court over what the union described as the airline’s “abuse” of JobKeeper payments, alleging Qantas has refused to pay workers for public holiday, weekend, overtime work and allowances by “standing people down for the rest of their pay period”.
The union also alleges Qantas is “manipulating the pay system” so that workers only receive “basic” JobKeeper payments.
The Australian Council of Trade Unions’ secretary, Sally McManus, also weighed in on the announcement of potential job cuts to ground handling operations, tweeting: “This is devastating news for workers and their families.”
According to staff emails seen by The Australian Financial Review, Joyce is reportedly back on Qantas’ payroll, earning 65 per cent of his pre-pandemic salary, while his direct reports are receiving 85 per cent of their pre-pandemic pay.
This was revealed as Qantas announced the departure of its international boss, Tino La Spina, from its executive team.
Net benefit of government support substantially lower than gross payments
Qantas dismissed any calls for the resignation of chief executive Alan Joyce, and said that while the group had received $515 million in gross government support, as outlined in its annual results released on 20 August, the net benefit to Qantas was $15 million.
A Qantas spokesman told Travel Weekly that $267 million of the government support was in the form of JobKeeper payments, most of which, he said, went directly to “our people who are stood down without work”.
The balance of that $267 million was used as a wage subsidy for those still working, while the remainder of the $515 million went to run flights on behalf of government.
These included “more than 100 international services to assist with repatriation as well as domestic flights to maintain key transport links”, services, the spokesman said, which would not have otherwise been commercially viable.
“When we announced all these figures on 20 August, the TWU issued a statement (here) to say that Qantas in fact needed more support from government,” the spokesman told Travel Weekly.
Government support not enough to cover costs, says aviation expert
Meanwhile, University of New South Wales aviation lecturer and former Qantas chief economist Dr Tony Webber told The New Daily that the support provided to Qantas by the government was not enough to cover its costs.
When asked whether taxpayers and Qantas staff had a right to “feel duped by Qantas given the assistance it had received”, Dr Webber said: “Over a year [Qantas] would have fixed costs of probably one and a half to two billion dollars, so the government support, while I suspect it’s appreciated, is just not enough.
“If you look at what Lufthansa is receiving and what Singapore Airlines is receiving, then what Aussie airlines are getting just pales in comparison.”
Dr Webber added that Qantas would have considered outsourcing its ground handling operations once it realised domestic borders would remain shut for longer than expected.
Furthermore, he warned that other airlines could announce more job losses, due to the domestic market taking longer to recover.
“They would have expected business to come back a bit sooner,” Dr Webber told The New Daily.
“So, you might see some announcements from Virgin and Rex if Victorian, Queensland and New South Wales borders remain closed for the next month – I don’t think they expected that, so that’s a possibility.”
Featured image source: iStock/DLMcK
Email the Travel Weekly team at traveldesk@travelweekly.com.au
alan joyce Australian Council of Trade Unions jetstar qantas Sally McManus Transport Workers UnionLatest News
Flight Centre’s Big Red Sale starts today
Flight Centre’s biggest sale has just landed giving Aussies the chance to lock in more affordable holidays close to home and overseas with saving of up to 50 per cent. The Big Red Sale starts today, 9 May, and runs until 5 June 2024. Flight Centre Global Managing Director Andrew Stark said that after the […]
Aurora Expeditions announces savings for solo travellers
Aurora Expeditions has today announced savings for solo travellers thinking of going north for the summer. Adventurous solo travellers can take advantage of no solo supplements, enjoying a guaranteed private cabin on select departures during Aurora’s Arctic 2024 season with plenty of options available on unforgettable voyages visiting Greenland, Svalbard, Northwest Passage, Iceland and more. […]
Etihad and Tourism officials launch free Abu Dhabi Stopover
Etihad Airways and the UAE’s Department of Culture and Tourism – Abu Dhabi have announced the launch of Abu Dhabi Stopover which invites guests flying through to turn their stopover into a free hotel stay and holiday. The Abu Dhabi Stopover, exclusive to Etihad Airways, will enable passengers to enjoy a convenient free stay in […]
New MSC Australia boss talks hot topics for local cruisers, including the Caribbean
New MSC Australia boss, Antonio Paradiso, spills the Caribbeans on where he expects Aussie cruisers will go next.
Contiki’s latest campaign inspires travellers to engage with the world around them
Hands off! Influencers invited on holiday and told not to post anything. We can assure you they're back at it now.
Aussies a hit on the conference floor for IPW 2024
Diana Ross on opening night, Keanu's Dogstar band and a dozen lobster rolls. All in a week's work at IPW 2024.
Disney excited about prospects of cruise business as Disney Treasure nears completion
Disney's booming cruising business is set to knock Disneyland experiences out of the park.
Scoot’s first E190-E2 flights take off between Krabi and Hat Yai
When flying's a pitch. Airline lite Scoot offers a standard seat pitch of 29” on its new 112-seater.
Premium hotel operator ERDI launches it’s own academy in heart of Melbourne
ERDI expects to be shaken not stirred with the launch of its ERDI Academy in its Melbourne hotels.
Tropical North Queensland action-packed events calendar for adventure enthusiasts
Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]
Singapore Airlines Group first to receive SAF from Neste as AU/NZ play catchup
Singapore leaving many in their green dust. Here in Australia, we're hoping for a tortoise and the hare type outcome
Qantas Red Tail sale discounts more than 200,000 fares
Qantas marketers forever thankful to the team who chose the red and white colours. How else would they name a sale!
Bannisters by the Sea unveils retreat style package for new mothers
Three hours in the car with a newborn from Sydney might be tough, but trust us, it'll be worth it when you arrive.
Nothing Bonza can do to prevent loss of planes, ACCC concerned by latest aviation developments
Going, going, gone. It seems...
APT offers destination incentives to enjoy the Best of Asia
Whether its a cocktail by the beach or a hike through the mountains, APT has you covered. You'll find us at the beach!
Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland
Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]
Get ready to roll the marketing dice with Susan Coghill: Travel DAZE EXEC 2024
It's heating up in Cairns and we're not talking about the weather! Get ready for a marketing masterclass with Susan.
Aranui Cruises slashes prices with No Single Supplement and Half Price offers
French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]
Cebu Pacific campaign aims to boost Aussie trips to the Philippines
Cebu Pacific's bouncy singalong ad campaign 'Fly to Happy, Fly to the Philippines’ aims to get more bums on seats.
Tauck’s new river and small ship ocean cruises, plus increased Seine capacity
Tauck adding itineraries like it's going out of fashion, which cruising certainly isn't.
Railbookers and La Dolce Vita Orient Express partner up for new luxury Italian itineraries
Fancy a luxurious trip through Italy? Who are we kidding, we know you do. Start your daydream here.
Luxury Travel Collection’s Nikki Glading spills all on member network perks: Travel Weekly TV
We urge you to enjoy this in true LTC style and lift a glass of bubbles with lunch today.
Auckland’s new domestic terminal comes with all the modern gadgets
We're not talking about drones or VR goggles, but these updates will change the game in Auckland.
Air New Zealand crew sign up for Sign Language Week
Have you signed up for Sign Language Week? Let this be your sign to do so!
Holland America Line gives one lucky winner the Ultimate Alaskan Cruise Experience
There's only one winner, so it's sort of like the Hunger Games of cruise prizes... but no one gets hurt.
TAG’s Byron Carr excited about K-Pop induced Asia expansion
Carr to go all Gangnam Style with TAG's Asian expansion
CATO celebrates 25 years with anniversary dinner
CATO's putting on a fancy spread to celebrate 25 years as other 25 year olds celebrate their HECS debt being cut.
Fiji Tourism Exchange 2024 opens with a vibrant ceremony at Sofitel Fiji Resort, Denarau
Two days in Fiji! If you didn't attend this conference we're sure you've got FOMO.
Raes on Wategos celebrates 30th birthday and guests get the presents
World famous luxury boutique hotel Raes on Wategos, in Byron Bay, has launched its 30th birthday celebrations with a Raes Indulgent Escape package. Available for all stays of two nights or more, from June to August, the curated package offers an invitation to indulge in a shared celebration of Raes 30th birthday, whilst revelling in […]
Seabourn’s two new value-add offers for 2024-25
Seabourn's doing a two for one deal. Kind of like a fast-food promo but its luxury cruising.
PONANT commercial team expands to meet growing demand in APAC
Can't remember that Ponant contact you met at a networking event? Good chance they're included in this update.
Gen Z and millennials on track for rise in Europe rail trips, says TruTravels
Despite what you think, Gen Z and Millennials are not 'off the rails', but instead want a fast track to Europe.
$230m joint Novotel & ibis Styles Melbourne Airport hotel prepares to open
Dear all business travellers, you're Melbourne experience just got a whole lot better.
Envoyage premieres Worldwide 2024 in Santiago
There has been a warm reception for 300 attendees at Envoyage's gabfest in Santiago, Chile.
Disney Destinations launches epic Aussie agent incentive
Everyone needs a bit of Disney in their life (apparently) and agents can get their next dose for free here.
IPW 2024: 960,000 Aussies took the trek to the Land of the Free last year
Nearly 6,000 travel industry reps descend on LA. Thankfully for all of their bosses, it's not in Vegas.