From the News Corp Australia mastheads this morning comes news that Qantas is preparing to cut 5000 jobs and $2 billion in costs, as it restructures with an aim to be more competitive with its rivals.
The Herald Sun reports:
“Qantas is gearing up to axe 5000 jobs and sell its terminal at MelbourneAirport to prove to the Abbott Government it can make the tough business decisions required to obtain federal assistance.”
The paper says Qantas is also about to “take the razor” to Jetstar, cutting jobs and routes.
The Qantas fleet is also under the spotlight with “pilot sources” telling The Australian: “The airline will bring forward the retirement of its fleet of ageing Boeing 767s and some of its older Boeing 747 jumbo jets as part of the cost-cutting measures. They also expect it to sell planes and defer new aircraft orders.”
Qantas results are due out on Thursday, and the Federal Government has previously said that it won’t make a decision on any assistance measures until they are revealed.
On its website this morning Qantas has responded to the speculation by saying,
There is fresh of speculation about what things we will or won’t announce on Thursday as part of our half year results. We are not in a position to comment on that speculation.
We have said that we will be making some tough decisions in order to achieve $2 billion in cost savings over the next three years, which is a consequence of an unprecedented set of market conditions now facing Qantas.
We’ve also said that we must take steps to reduce our costs regardless of whether the Federal Government acts on the uneven playing field in the Australian aviation market
Aviation is a tough business globally but we’ll know more with the Qantas results.
Business Insider Emails & Alerts
Site highlights each day to your inbox.