Airline to cut and sell planes after heavy loss
The Australian carrier Qantas will implement the most radical restructuring since it was privatised in 1995, following its posting of a heavy loss this week.
It aims to cut 15% of its workforce – around 5,000 jobs – and sell older aircraft after reporting a worse-than-expected first-half loss before tax of AUD$252 million (€165 million). The airline is struggling to fight off growing competition on both international and domestic routes.
Qantas plans to cut costs by AUD$2 billion over the next three years, while once again appealing to the Australian government and investors for assistance.
As its losses pile up, Qantas is now worth only half what it was when current chief executive Alan Joyce took over in 2007. Its credit rating is now at junk level.
[pictured: Qantas A380; courtesy Qantas]