Qantas cuts another 2,000 jobs as airlines make major baggage handling changes to save $ 100 million
- Airline Qantas cuts another 2,000 employees to save $ 100 million
- Ground crew and baggage handling will be outsourced at ten airports
- The latest outsourcing means Qantas has saved 10,500 since the pandemic
Qantas is cutting 2,000 more jobs and outsourcing baggage handling to save $ 100 million annually in costs.
The flying kangaroo airline had laid off 8,500 employees since the coronavirus pandemic began in March.
The latest downsizing results in 10,500 job losses in just eight months, though Qantas will have an even bigger market share as its rival Virgin Australia shrinks to survive.
Qantas is cutting 2,000 more jobs and outsourcing baggage handling to save $ 100 million annually in costs
Qantas announced on Monday that it would outsource ground handling at ten airports across Australia to save $ 100 million annually.
The airline, which celebrated its 100th anniversary this year, said it would save $ 80 million in five years by eliminating the need to spend a lot of money on airplane trailers and baggage loaders.
In August, Qantas cut 2,500 ground crew jobs in addition to 6,000 existing layoffs and has since held tense meetings with the Transport Workers' Union about further job cuts.
Uncertain about the resumption of international travel and pressure from the Australian Competition and Consumer Commission on domestic prices, Greg Smith, chief research officer for Fat Prophets, said Qantas had no choice but to cut costs.
"There will certainly be complaints when the airline makes the most of a bad situation and even price cuts," he told Daily Mail Australia.
"Cutting costs is a way of increasing margins rather than just increasing tariffs."
Qantas announced on Monday that it would outsource ground handling at ten airports across Australia to save $ 100 million annually
Andrew David, Qantas chief executive for domestic and international operations, said the COVID-19 border closings meant international travel would not return to pre-pandemic levels until 2024.
& # 39; Unfortunately, COVID has turned aviation upside down. Airlines around the world will have to make dramatic decisions to survive and repairing the damage will take years, ”he said.
"While there has been some good news about domestic borders lately, international travel is not expected to return to pre-COVID levels until at least 2024."
"We have a big job to do to repay debt, and we know our competitors are aggressively cutting costs to get leaner."
The downsizing had little impact on Qantas stock, which was still at $ 5.52 nearly an hour after the AEDT was announced at 12:25 p.m.
Still, the share price is more than double the $ 2.14 low hit in March when the World Health Organization declared a COVID-19 pandemic and Australia closed its border to non-residents and non-nationals.
Last month, Alan Joyce, Qantas CEO, announced to shareholders that the airline's domestic market share would increase from 60 percent before the pandemic to 70 percent if state borders were reopened.