Qantas Posts USD 252 Million Loss, to Axe 5000 Jobs

Published Date : Feb 28, 2014

Australia’s leading airline carrier said that it will cut up to 5,000 jobs after it reported losses to the tune of USD 252 million in its first half. The airlines hopes to cut costs by nearly USD 2 billion through these job cuts that will mainly affect full-time employees over the next three years up to 2017. 

As recently as December 2013, Qantas had brought into effect a wage freeze for its executives. The company said that this freeze would continue and also that it will extend to all employees of the group.

Other cost-saving measures being adopted by the airline include a plan to cut down on capital expenditure by USD 1 billion besides making some significant changes to its network and fleet over the next two years.

Of the total planned job cuts, nearly 1500 layoffs will affect personnel in non-operational and management roles. The other 3500 job cuts could affect personnel at a later stage when the airline begins to restructure its maintenance and catering facilities. 

According to the airline’s CEO Alan Joyce, the job losses are a regretful decision, and the company intends to take the required measures to make it easier on employees being laid off. 

In addition to cutting jobs, the airline will also either sell or defer over 50 aircraft. Older planes-such as the Boeing 747s-will be retired early. Furthermore, the company has made known its plans to delay the orders of other aircraft such as the B787-8s and A380s.

Routes that are currently not meeting performance expectations will be discontinued by the airline. These routes include its Perth-Singapore operations.

Another measure taken by the airline-in order to meet its target of cutting costs by USD 2 billion by 2017-is to hand the lease of Brisbane terminal back to the airport corporation. This will generate nearly USD 112 million.