Qantas cuts 5,000 jobs, posts $235m loss in first half

Tags: Qantas, Jobs
Disclosing an AUD 235 million half-year loss, Australian national airlines Qantas today announced axing 5,000 jobs in a bid to cut costs.

According to media reports, Qantas Chief Executive Alan Joyce said the result was unacceptable and the company would slash 5,000 full-time equivalent positions.

"We have the only profitable carriers operating in the domestic operation today," he said.

"We haven't added as much capacity as our competitors have over the last few years, they're absolutely employing the position of adding capacity even though they are losing a significant amount of money and their strategy is loss-making," Joyce added.

Over the next three years, Qantas will be slashing 1,500 management and non-operational positions, he said.

The other shake-up would be seen in the fleet and network and the restructure of maintenance operations and catering facilities.

Employee wages would also be frozen and the company's executives had already taken a pay cut, reports said.

Joyce said the airlines suffered AUD 252 million underlying loss for the six months to December 31.

"There are many Australian companies that have failed because they were not prepared to make the hard decisions, Qantas is not one of them," he said.

"We will cut where we can in order to invest...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 adding that he would meet unions tomorrow to discuss the cuts.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

CHAIN REACTION

A domino effect is the cumulative effect produced when one ...

Zehra Naqvi

Rememberance and forgetting are crucial

Memories are so vital to our lives that they can ...

Dharmendra Khandal

Sandalwood may get extinct if not protected

When we talk of sandalwood, the most common usage that ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture