Qantas denies reports of job cuts
BREAKING: Qantas has denied reports it will cut 3000 jobs and routes to London, labelling them “unsourced rumours”.
QANTAS has denied reports it will cut up to 3000 jobs next week, labelling them as “unsourced rumours”.
“There are a series of unsubstantiated and unsourced rumours swirling around ahead of our half year results, ranging from estimates on job losses to route changes,” a Qantas spokesman said.
“The facts are that Qantas has flagged the need to make tough decisions as part of strengthening our business, which we will outline next Thursday. For our customers, this won’t change our focus on being one of the world’s best airlines.”
It comes after Fairfax Radio reported the airline would cut even more jobs as it hands down its half-year financial results next Thursday where it is tipped to announce a loss of more than $300 million.
BREAKING: Qantas set to announce route cuts and major job losses next Thursday. @JustinSmith954
— News Talk 2UE 954 (@NewsTalk2UE) February 21, 2014Fairfax Radio understands up to 3000 Qantas workers are expected to be laid off on Thursday http://t.co/kHwblFk6iC
— 3AW Melbourne (@3AW693) February 21, 2014The airline announced 1000 jobs late last year and slashed the salary of CEO Alan Joyce by 38 per cent in a bid to save $2 billion over the next three years.
The company recorded dismal economic performance in the first half of the 2013/14 financial year, with an underlying before tax loss of $250-300 million due to low passenger numbers, high fuel costs and the strong Australian dollar.
The airline had its credit rating cut to junk by ratings agency Moody’s and Standard and Poor’s and is now considered below investment grade.
The financial trouble has sparked huge debate in the airline industry.
Qantas bosses want to see the Qantas Sale Act — which limits foreign ownership in the airline — repealed in order to allow greater foreign investment.
However the stoush has turned ugly, with a war of words erupting this week between Treasurer Joe Hockey and Virgin Australia CEO John Borghetti, after the Treasurer called Virgin a “3000-pound gorilla” crushing the “800-pound Qantas.”