News

Coronavirus: Qantas adds to job cuts by outsourcing 2,000 roles

Coronavirus: Qantas adds to job cuts by outsourcing 2,000 roles
Business
“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.

media captionCEO Secrets: Cabin crew have amazing skills for business

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.
Read more on bbc.com
News Topics :
Similar Articles :
World
WELLINGTON, New Zealand Qantas plans to cut at least 6, 000 jobs and keep 15, 000 more workers on extended furloughs as Australia’s largest airline tries to survive the coronavirus pandemic....
Business
CANBERRA, Australia The Australian government is planning to relax foreign ownership restrictions on Qantas Airways as the loss making flagship carrier battles to slash 2 billion Australian dollars $1.8 billion...
Business
CANBERRA, Australia The Australian government is planning to relax foreign ownership restrictions on Qantas Airways as the loss making flagship carrier battles to slash 2 billion Australian dollars $1.8 billion...
Top Stories
SYDNEY — Australia’s Qantas Airways picked Airbus SE over Boeing Co as the preferred supplier for jets capable of the world’s longest commercial flights from Sydney to London, dealing the...
Business
When it comes to raising money, nothing is off limits for airlines mired in their worst ever crisis. From fresh vegetables to peanuts and pyjamas, they’re selling almost anything to make...