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Qantas is putting a biggest job cut to overcome financial crisis


Syed Umarullah HussainiWeb Editor

25th Jun, 2020. 09:40 am
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Australia

As the ongoing pandemic continues to grip the businesses around the world, in the latest drawback; Australia’s national flag carrier Qantas has announced to sack its 6000 workers to get rid of the financial crisis.

The management of Qantas airline said that 100 of its aircraft will remain grounded for one year, or maybe longer, however, six 747s will be retired early.

The 6,000 jobs cut will include 1,450 office roles, 1,500 ground operations staff including baggage handlers, 1,050 cabin crew, 630 engineering jobs, and 220 pilots.

The moves are devised to overcome costs by $15 billion during an expected three-year period of lower activity, and then result in $1 billion per year of ongoing cost savings from the 2023 fiscal year.

Chief of the Airline, Alan Joyce said that the result from the pandemic would affect the airline sector for many years to come.

In his statement, he said “Airline revenues have been destroyed, around all fleets have been grounded. And the world’s biggest carriers are taking extreme action just to survive the financial crisis.”

Alan Joyce said the disaster had hit Qantas “very hard” and that “the influence will be felt for a long time”.

He said international flights were unlikely to resume until July next year. “The 6,000 jobs those that we don’t see coming back for a long time,” he said.

Qantas’ fleet of 12 huge Airbus A-380 aircraft that used to fly on long haul routes will be grounded for three years.

The aircraft are being stored in the Mojave desert in the United States, Mr. Joyce said. because the dry conditions minimize corrosion.

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