Qantas to axe 5000 jobs after loss

Qantas to axe 5000 jobs after loss
By admin


Qantas will axe 5000 jobs in a bid to dramatically cut costs after posting a $252 million first half loss.

Over the next three years, Qantas will shed 1500 management and non-operational positions, with the remainder of the job cuts to come from changes to the fleet and network and the restructure of maintenance operations and catering facilities.

Meanwhile, wages for all employees will be frozen and the company's executives have already taken a pay cut.

The airline is attempting to save $2 billion by the 2016/17 financial year as it tries to return to profitability amid a bitter, profit-draining battle with rival Virgin.

Qantas shares fell 10 cents, or almost 8%, to $1.17 following the announcement.

The announcement comes as the federal government weighs up the possibility of supporting the airline through a debt guarantee or changes to the Qantas Sale Act.

Chief executive Alan Joyce said the $252 million underlying loss for the six months to December 31 was unacceptable and tough decisions needed to be made.

"There are many Australian companies that have failed because they were not prepared to make the hard decisions, Qantas is not one of them," Joyce told reporters in Sydney.

"We will cut where we can in order to invest where we must… we will be a far leaner Qantas group."

"Our priorities are to protect our core businesses… that is how we will protect as many jobs as possible and return to profitability."

Joyce said he would meet with unions on Friday to discuss the cuts.

He put much of the blame for the result on an "uneven playing field" with Virgin, which has the backing of three foreign airlines – Etihad, Singapore Airlines and Air New Zealand among its owners.

"The Australian domestic market has been distorted by current Australian aviation policy," he said.

"Late last year, these three foreign airline shareholders invested more than $300 million in Virgin Australia…. that capital injection has supported continued domestic capacity growth by Virgin Australia despite its growing losses."

The amount of capital Qantas can access from foreign sources is restricted by the Qantas Sale Act.

As part of its bid to save costs, Qantas will cut capital expenditure by $1 billion over the next three years.

It will also hand back its Brisbane Airport lease for $112 million, though it will retain exclusive use of most of northern end of terminal until 2018.

Meanwhile, the airline says more than 50 aircraft will be deferred or sold, with older planes like 747s to be retired early and orders of A380s and B787-8s to be delayed.

It will also axe underperforming routes including its Perth to Singapore service, while timing and aircraft changes will be made to other routes.

Joyce also announced Qantas would suspend the expansion of the Jetstar Asia business in Singapore, which continued to face tough conditions, though he indicated the airline remained committed to finding opportunities in Asia.

"Jetstar has been a pioneer Australian brand across Asia and we continue to see major opportunities for it in the world's fastest growing aviation region," he said.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Products

Embrace the journey: Traversing the world with the Shokz OpenRun

If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]