Qantas Slashes Jobs And Taps Shareholders For Survival Plan
Qantas Airways will slash 6,000 jobs, ground 100 of its aircraft for at least a year and raise AU$1.9bn (FJ$2.84bn) in equity as the Australian carrier steps up measures to ensure it survives the coronavirus pandemic. As part of a three-year plan announced on Thursday, Qantas will make more than a fifth of its workforce redundant and furlough a further 15,000 employees as it forecasts a prolonged period of weak demand due to COVID-19.
Development
The development is the latest sign of the drastic action carriers are being forced to take after a plunge in travel demand, with the airline industry forecast to post collective losses of AU$84.3bn (FJ$ 126.08bn)in 2020. British Airways plans to shed almost a third of its 42,000 workforce while US airlines this week have secured US$10bn(FJ$21.72bn) in funding in a bid to bolster their balance sheets. The job cuts at Qantas, the deepest in its century-long history, reflect a growing realisation that international travel faces a long and difficult path to recovery following the health crisis. “We have to position ourselves for several years where revenue will be much lower. And that means becoming a smaller airline in the short term,” said Alan Joyce, Qantas chief executive, on Thursday.
International flights resumption
Qantas will not resume international flights in any significant way until July 2021, Mr Joyce added, but pointed to recent signs of recovery in its domestic business. Mr Joyce, who has led Qantas since 2008, said he had agreed to a board request to remain as chief executive until the end of 2023.
That will make serving leaders him in one of the longest the aviation industry.