Qantas to shed 100 pilots as part of mass job losses

REDUNDANCIES are tipped to see some of Qantas’ most experienced pilots leave the airline as part of its 5000 staff cuts.

Qantas staff cuts will see 100 pilots given voluntary redundancies.

QANTAS’ axing of up to 100 pilots is tipped to see some of the most experienced pilots leave the airline.

Voluntary redundancies are being offered to pilots for the first time in the airline’s history.

The redundancies are to be offered to pilots of Qantas’s 747 and 767s, which are set to be retired from the fleet over the coming years.

Qantas employs about 2000 pilots but in recent years a surplus of pilots has meant a number of its pilots have been given leave to work for other airlines including Jetstar.

Australian and International Pilots Asscoiation president Nathan Safe said older pilots were most likely to take the redundancies.

“Obviously from AIPA’s perspective it is far better to see fleet reductions managed with older pilots stepping out on their own terms, rather than younger pilots being made redundant compulsorily,” he said.

“AIPA is now negotiating with the company to ensure the voluntary redundancies offered fairly reflect the typically long years of quality service invested by Qantas pilots.”

Qantas chief pilot Dick Tobiano said in an internal message that plans to accelerate the retirement of the planes meant the airline was no longer able to manage the staff surplus through leave arrangements.

“It is anticipated that exits would be staggered corresponding with network and fleet reductions,” he said.

With a global pilot shortage looming in the coming years, international airlines such as Emirates and Etihad may target Qantas pilots who choose to take redundancies.

The 100 pilots will be are among the 5000 Qantas staff to lose their jobs in the coming years under the airline’s $2 billion cost saving program.

Qantas will have cut 2200 staff by the end of June, and plans to have nearly all 5000 cuts completed 12 months later.

By the end of June, 1000 Qantas management will have gone, as well as 1200 staff from its engineering, catering, freight and air and ground crews, chief executive Alan Joyce said last week.

About $800 million in savings is expected to have been made by June 30, 2015, he said.

The company plans to shed another 1800 staff in the 2014/15 financial year, including 500 management positions, taking total job losses to 4000 by the end of June 2015, Mr Joyce said.

That leaves a target of 1000 job losses in the following two years.

Of the airline’s total job losses, 1500 are to come from management, as its head office is restructured to improve efficiency, Mr Joyce said.

Those redundancies are expected to cost $165 million, but will deliver $175 million in cost savings each year, he said.

A critical goal of Qantas’ overhaul is to improve its credit profile, which was downgraded by ratings agencies after it revealed in December it would post a half year loss of up to $300 million. The airline plans to have reduced its debt by at least $1 billion by the end of June 2015, through asset sales, reduced investment and a reduction in its fleet size, Mr Joyce said.

- With AAP / AFP