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D-Day for Qantas: up to 5000 jobs may be cut

QANTAS pilots have been offered counselling as the airline prepares to unveil a savage round of cuts to jobs, routes and its fleet.

QANTAS pilots have been offered counselling as the airline prepares to unveil a savage round of cuts to jobs, routes and its fleet today.

Internal memos sent to staff from chief international pilot Dick Tobiano and his domestic counterpart Al Crawford concede that “all parts of the (Qantas) business will be affected” and that the airline’s pilots are among many feeling “concern and apprehension”.

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“It takes teams of people to safely provide air travel, and some of the members of those teams that you interact with may find this time particularly difficult,” Mr Crawford said.

Scrutiny ... analysts say a number of poorly performing international and domestic routes
Scrutiny ... analysts say a number of poorly performing international and domestic routes

“We’ll all need to be extra empathetic and supportive of each other in the days ahead.

Cutting costs ... the Qantas terminal at Melbourne’s Tullamarine is likely to be sold off.
Cutting costs ... the Qantas terminal at Melbourne’s Tullamarine is likely to be sold off.

“If you feel you or those around you need extra support, or simply wish to discuss any matters, contact Nic Wright, myself or any other member of the Flight Operations team. You can also access the Employee Assistance Program at any time,” his memo said.

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It comes as chief executive Alan Joyce is expected to outline plans to save $2 billion over three years when the airline announces a predicted half-year loss of up to $300 million on Thursday.

Job fears ... employees will have the opportunity to raise their concerns with Qantas chiefs after  CEO Alan Joyce’s announcement.
Job fears ... employees will have the opportunity to raise their concerns with Qantas chiefs after CEO Alan Joyce’s announcement.

Up to 5000 jobs could be cut at the struggling airline, while ageing Boeing 767 and Boeing 747 aircraft may be retired.

Analysts say a number of poorly performing international and domestic routes are also under the microscope, including the flying kangaroo’s services to Johannesburg.

A Qantas spokesman said that with the “excessive media speculation around the company’s announcement, it had “reminded our employees of the systems and processes that we have available.”

“No pilots have taken this up,” the spokesman said.

Qantas staff ... there are fears up to 5000 jobs at the struggling airline will be cut.
Qantas staff ... there are fears up to 5000 jobs at the struggling airline will be cut.

After Thursday’s cuts are announced, employees will have the opportunity to raise their concerns with Qantas International chief executive, Simon Hickey, and his domestic counterpart, Lyell Strambi.

The announcement is expected to lead to a decision on Federal Government assistance for the struggling carrier.

The government has offered Qantas the prospect of a debt guarantee that would allow the airline to borrow more cheaply and help it regain its investment-grade credit rating.

It is also drafting legislation that would allow an increase in the foreign ownership of Qantas, by removing limits imposed by the Qantas Sale Act, which caps the company’s foreign ownership at 49 per cent.

The laws also require the airline to keep most of its maintenance, catering, flight operations and training facilities for its international services in Australia.

Prime Minister Tony Abbott said on Wednesday that Qantas will not have to guarantee a certain number of jobs in Australia in exchange for the relaxed foreign ownership laws.

“What Qantas does is a matter for Qantas management,” he said, adding that it was not the business of government to run airlines.

Opposition transport spokesman Anthony Albanese said it was important Qantas remained an Australian-based company and urged the Federal Government to take concrete action to support the airline, rather than release “thought bubbles”.

Original URL: https://www.dailytelegraph.com.au/travel/travel-news/dday-for-qantas-up-to-5000-jobs-may-be-cut/news-story/e0ca91c17cae51c1ec6e86a6c05c4d33