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Old 18th Mar 2003, 11:36
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RVR800
 
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Hot news BBC today

Australia's Qantas airline is temporarily cutting 1,000 jobs as the world's airlines get ready for a sharp fall in the number of people travelling by plane.
Several Asia-Pacific airlines have also announced service cut-backs and cost cuts as war in Iraq gets closer.

"We're stepping up security measures and will scale back unprofitable routes to save fuel costs," said a spokesman for Korean Air.


Qantas Airways, Australia's flag carrier, said it would cut the equivalent of 1,000 jobs by forcing staff to take leave.

Many airlines, especially in the US, are still struggling to cope with the travel slump that followed the September 11 terrorist attacks. Many US airlines went into bankruptcy.

The airlines are also suffering from the global economic downturn and higher fuel prices.

Pay cuts

On Monday, United Airlines asked a US bankruptcy court to let it scrap existing labour contracts in order to get itself back on track.

United, the country's second largest carrier, also said it may have to ask all workers to accept a further 9% wage cut to offset the impact of a war against Iraq.

The credit ratings agency Moody's said it was considering downgrading two more US airlines - Delta and Northwest.

And American Airways began formal negotiations with its major unions over pay and benefit cuts in order to try to save it from bankruptcy.

The battered aviation industry has shed about 400,000 jobs since September 2001.
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