Darwin workers among 2500 ground operations jobs proposed to be cut

DARWIN workers will be among major job losses if Qantas goes ahead with proposed cuts prompted by COVID-19

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DARWIN workers will be among about 2500 jobs lost if Qantas goes ahead with proposed cuts prompted by COVID-19.

This afternoon the Qantas Group announced it would review its ground operation roles – which includes baggage handling and aircraft cleaning – at 11 large airports around the country, including Darwin.

The cuts are expected to save the company about $100 million a year.

Qantas is proposing to outsource its ground handling operations at the 10 Australian airports where the work is done in-house, which could impact up to 2000 employees.

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It is also proposing to outsource its bus services for customers and employees in and around Sydney Airport impacting 50 employees, while Jetstar Airways has decided to outsource its ground handling at six Australian airports where in-house work is done, impacting 370 jobs.

Qantas Domestic chief executive Andrew David said the company had to make changes in order to survive.

“This is the greatest challenge the aviation industry has ever faced and airlines have to change how they operate to ensure they can survive long-term,” he said.

“We’ve already taken drastic action, with more than 220 aircraft grounded, the vast majority of our workforce stood down and assets mortgaged to raise cash. Right now, our domestic capacity is at 20 per cent of pre-COVID levels and international travel is expected to take years to recover.”

The announcement follows a $2.7 billion statutory loss for the group in FY20 and a $4 billion drop in revenue in the second half due to COVID-19.

Job losses of at least 6000 have already been announced as part of right sizing and restructuring the business.

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“We know travel restrictions will lift eventually, but the market will be very different. Every airline will come through this much leaner and more efficient, and we have to be able to compete if we’re going to survive,” Mr David said.

“Outsourcing this work to specialist ground handlers would save an estimated $100 million in operating costs each year.

“Today’s announcement will be very tough for our hardworking teams, most of whom have already been stood down for months without work. This obviously adds to the uncertainty but this is the unfortunate reality of what COVID-19 has done to our industry.”

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