Qantas job cuts spark fears of flight price rises for Territorians

HOSPITALITY NT has appealed to Qantas not to chase profits at the Territory’s expense as the airline cuts thousands of jobs.

Hospitality NT has appealed to Qantas not to chase profits at the Territory’s expense as the airline cuts thousands of jobs. Picture: Supplied

HOSPITALITY NT has appealed to Qantas not to chase profits at the Territory’s expense as the airline cuts thousands of jobs.

Chief executive Alex Bruce said he was concerned about the impacts on the Territory of Qantas’ plans to cut 6000 jobs across its business.

“It’s a serious worry,’ Mr Bruce said.

“We want to see flights and routes to the Territory restored not cut.

“Let’s hope these cuts don’t results in higher airfares for Territorians.

“We don’t want them to chase profits at the Territory’s expense.

“We need as many flights as possible restored.”

Qantas said it is too early to say what, if any, impact the company’s job cutbacks would have on the Territory.

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In addition to slashing jobs, Qantas will ground at least 100 aircraft for up to a year or longer, and reduce costs by $15 billion as part of its three-year virus recovery plan.

The jobs — which represent about 20 per cent of the company’s workforce — will be cut across Qantas and Jetstar in a process of “right-sizing”.

They include pilots, cabin crew, engineers, ground crew who work in baggage handling, fleet presentation and ramp options, as well as corporate staff.

A spokesman for Qantas said there was currently no geographical breakdown of jobs affected.

“We’re offering voluntary rather than compulsory redundancies where possible so we wouldn’t have a figure for that anyway,” the spokesman said.

“The announcement doesn’t affect the current network.”

Qantas was unable to answer what the network would look like for the Northern Territory’s services post coronavirus restrictions.

Qantas chief executive Alan Joyce. Picture: AAP Image/Bianca De Marchi

In a statement, Qantas chief executive Alan Joyce said the 6000 job cuts were a painful decision that had to be made as the airline joined others worldwide in grappling with the future of the aviation industry.

“We have to position ourselves for several years where revenue will be much lower,” he said.

“That means becoming a smaller airline in the short term,” Mr Joyce said.

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“Most airlines will have to restructure in order to survive.

“Adapting to this new reality means some very painful decisions.

“The job losses we’re announcing are confronting. 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.”