Australia's National Airline plans to further cut 2,500 ground staff jobs

By TIN Media | International Published 2 months ago on 27 August 2020
Read News

SYDNEY:

Australia's national airline Qantas announced Tuesday that 2,500 more jobs will be cut as it plans to outsource ground handling services to major Australian airports.

Qantas said it suggested that various tasks would be outsourced to ground operations, including baggage handlers, aircraft cleaners and bus drivers, with an impact total of almost 2,500 roles.

The airline has already flagged 6,000 job losses in June in a bid to cut costs amid the ongoing COVID-19.

The last statement was accompanied in the second half by the statutory loss of $2,6 billion for the Group in FY20 ($1,94 billion) and a decline in revenue of $4 billion($2,87 billion) due to the COVID-19 crisis and its border constraints.

"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," Qantas Domestic CEO Andrew David said.

"Right now, our domestic capacity is at 20 per cent of pre-COVID levels and international travel is expected to take years to recover."

He said outsourcing the work to specialist ground handlers would save around AUD100 million (US$71.72 million) each year.

The airline will talk to its employees and unions on the plan.


    TAGS / KEYWORDS:

Email TIN

TIN Media

TIN.media - Travel Industry Network is Malaysia's home grown B2B Travel Industry Media with the most influential B2B online resources including news, research, events, and marketing services and more.