Qantas to cut 6000 jobs due to pandemic

Daniel Fowler
June 26, 2020

Qantas has unveiled a three-year plan created to accelerate a recovery from the Covid-19 outbreak.

"It's not there to support people that in jobs that do not exist and are going to disappear". The first is to rightsize our workforce, fleet and capital spending for a world that has less flying for an extended period. The second is restructuring to deliver ongoing savings across the Group's operations in a changed market.

Announcing the plan, Qantas chief executive, Alan Joyce, said: "The Qantas Group entered this crisis in a better position than most airlines and we have some of the best prospects for recovery, especially in the domestic market, but it will take years before global flying returns to what it was".

Although the airline did not reveal how many aircraft of which type would remain grounded, it did specify that its twelve A380-800s will "be idle for the foreseeable future, which represents a significant percentage of their remaining useful life", due to anticipated lower levels of demand.

Mr Joyce said he did not expect the airline to resume worldwide services in any significant way until July next year at the earliest.

Mr Kaine also demanded the Federal Government do more to keep Australia's flailing aviation industry afloat.

The Qantas Group is pleased to announce the successful completion of an approximately $1,360 million fully underwritten placement (Placement) of approximately 372.7 million new shares (Placement Shares) to institutional investors at a price of $3.65 per Placement Share (the Placement Price).

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Qantas also plans to raise up to another A$500 million through a share purchase plan. The issue will be priced at AUD3.65 (USD2.51) per share, 12.9% below its last trading price before the plan was announced.

Yesterday the national carrier announced it will immediately shed 6000 jobs as part of a drastic three-year plan to slash costs by $15 billion.

In order to survive, Qantas today announced it's sacking 6,000 workers and continuing to stand down 15,000, many of whom are on JobKeeper payments set to end soon.

The lay-offs will affect predominantly ground operations (1,500 staff sacked), non-operational positions (1,450), and cabin crew (1,050).

It's hoped about half of them will be back at work by the end of the year.

"So is the fact thousands more of our people on stand down will face a long interruption to their airline careers until this work returns". CEO Alan Joyce is pictured congratulating the crew.

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