Qantas / To slash 1,000 jobs

Lower demand, a strong Australian dollar and steep fuel costs have put pressure on the airline and Qantas said conditions were expected to remain volatile next year.

The airline expects to post pre-tax losses of between 250 million (£138m) and 300 million dollars (£165.5m) for the six months to December 31.

Qantas is trying to save two billion dollars (£1bn) over the next three years. On top of the job cuts, it will freeze pay for all employees and cut the salaries of chief executive Alan Joyce and other bosses.

Chosen excerpts by Job Market Monitor. Read the whole story at 

via Airline Qantas to slash 1,000 jobs « Shropshire Star.

Govt talks down Qantas aid amid job cuts

The federal government has talked down the prospects of coming to the direct aid of Qantas, after the airline announced the axing of 1000 jobs and flagged further cost cuts.

Qantas chief Alan Joyce has forecast a six-month loss of up to $300 million which he blamed on the strong Australian dollar, high fuel costs and Virgin Australia ‘distorting’ the market.

Mr Joyce, who is facing calls from Labor and crossbench MPs for his sacking, said the company had done its best to cut costs and improve productivity.

His $3 million pay will be cut by at least 38 per cent this financial year, but he says he continues to have the backing of the board.

‘Government action will be key in enabling us to keep competing effectively on a level-playing field,’ he said on Thursday.

The Qantas chief is talking with the government about additional policy measures but is yet to make a formal proposal.

Qantas also wants to ensure its key domestic competitor Virgin Australia doesn’t ‘have the benefits conferred by an Australian carrier designation’ while having only 20 per cent Australian ownership.

Qantas has floated the idea of a Foreign Investment Review Board review of Virgin\’s use of foreign capital injections to ‘prolong anti-competitive action’ in the Australian market.

Transport Minister Warren Truss said Qantas was a strong airline with a good future and its cuts were entirely appropriate as it restructured to be more competitive.

He appeared to rule out providing a loan or financial guarantee to Qantas.

‘The government isn’t a banker,’ he said.

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via Govt talks down Qantas aid amid job cuts | Sky News Australia.