Coronavirus: Qantas adds to job cuts by outsourcing 2,000 roles
|bbc.com 29 Nov 2020 at 22:33|
“Unfortunately, Covid has turned aviation upside down," said Andrew David, the airline’s domestic and international chief executive.
"Airlines around the world are having to make dramatic decisions in order to survive and the damage will take years to repair,” he added.
Qantas hopes to save about $74m annually, based on pre-Covid levels of flying, by switching to third-party providers instead of handling its own ground services.
It also expects to save $59m over five years by avoiding new spending on ground handling equipment such as aircraft tugs and baggage loaders.
Affected employees will be entitled to a redundancy package and given support to transition to new jobs, the airline said.
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There has been some good news for the airline’s recovery, with domestic routes starting to recover as state governments lift interstate travel restrictions.
But Qantas is still predicting bleak times ahead, with more losses next year due to a drop in revenue of $7.4bn.
The airline has also taken on an additional $1.1bn debt in order to keep operating.
It’s not alone. The International Air Transport Association (IATA) predicts airlines globally are on course to lose $157bn this year and next.