Qantas removes 6 000 jobs and aims to raise $ 1.3 billion

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The cuts announced Thursday represent 20% of the total staff of Qantas, that is, 29 000 people, according to the company. They affect mainly the personal, corporate, ground, and flight of the airline, while a further 15,000 workers will remain on leave ” until the return of flights “, he added. Jetstar, the carrier budget of the company, will also be affected.

The airline also brings radical changes to its fleet as part of a wider plan of three years to help his company recover from the crisis history of travel in the world. Most of the international air carrier – or up to 100 aircraft – will remain locked-in for one year, the company said. Its six Boeing (BA) 747 jumbo-jets are also put out of service six months earlier than planned.

The new measures are expected to help the company reduce its costs of 15 billion australian dollars (10 billion dollars) over three years. After that, he targets each year 1 billion australian dollars (about 686 000 $) of recurring savings.

The shares in Qantas, which have fallen by 41% this year, were suspended Thursday in Sydney at the announcement. Its fundraising plan will be to offer 1.36 billion australian dollars extra (approximately $ 933,000) of shares to institutional investors, with a discount of approximately 13% compared to the closing price of the share on Wednesday.

The $ 500 million remaining will be pursued in the framework of a plan for the sale of shares separate proposed and existing investors.To direct the recovery strategy, the CEO Alan Joyce has also agreed to keep his position until the end of the fiscal year 2023.

“At the moment, all airlines are in the midst of the greatest crisis our industry has ever known,” said Joyce in a press release. “The impact will be felt for a long time. ”

The union australian services, however, argued on Thursday that it was “too early” for Qantas to cut jobs – and called the airline company and the federal government to protect the workers ‘ wages.

“This announcement by Qantas is premature,” said the group in a press release. “The australian economy cannot afford a major contraction of the aerospace industry. ”

Joyce said during the announcement of the company that ” the crisis has left us no choice “.

“The collapse of billions of dollars of revenue leaves us little choice if we want to save as many jobs as possible in the long term,” he said in a press release. “We need to position ourselves for several years, and the income will be much lower. And it means to become a small airline in the short term. “

The travel industry is affected

Qantas had already significantly reduced its flight capacity so that the pandemic has reduced the demand for travel. And last week, the airline has cancelled most of its international flights until October.

The main local competitor of Qantas, Virgin Australia, also fights for his life. In April, the airline backed by Richard Branson, filed a request for voluntary membership after having failed to receive the government support that she had requested. He now has offers from the parties to participate in its restructuring and eventual sale.

The news that Qantas is in the process of putting in the earth a large part of its fleet indicates its darkening outlook, even if Australia is being hailed as a potential destination for several “bubbles” travel proposed. The carrier flagship of Australia said that he had planned flights “in the coming months” to host a new arrangement for passengers travelling between Australia and New Zealand.

The government of Fiji has also announced earlier this week that he planned to create a bubble to travel with the Australia and New Zealand.

But “it is clear that the international travel will be probably blocked for a long time,” said Joyce Thursday. He cited a prediction of the Authority of international air transport, which has estimated that it could take more than three years for travel in the world return to pre-crisis levels.

There is a glimmer of hope: the market for australian domestic travel shows signs of life while the restrictions of locking up gradually across the country. Qantas said that there was a growing demand for travel in Australia – the number of domestic passengers of the company in the country doubled last week to 64 000 people.

The australian authorities should also remove the closures of national borders, the next month, which, according to Qantas, will help to stimulate even more local travel.

“Once that occurs, we can return more of our employees at work,” said Joyce.

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