1,750 jobs to go at Qantas
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1,750 jobs to go at Qantas
Breaking news from The Age newspaper:
Qantas scraps more jobs, cuts capacity
Qantas scraps more jobs, cuts capacity
Qantas scraps more jobs, cuts capacity
April 14, 2009 - 9:32AM
Qantas will scrap up to 1750 jobs, including 500 management positions and has forecast a massive drop in its profit expectations, the airline revealed this morning.
Qantas also said it would sell about 10 aircraft and will cut freight capacity both internationally and domestically.
"Unfortunately, responding rapidly to declining economic conditions is going to have a direct impact on our staff. We employ over 34,000 people and we are striving to protect as many of their jobs as possible, but the capacity reductions to protect the long-term viability of the overall Qantas Group mean that up to 1250 equivalent full-time positions will be affected in addition to the management reductions being made," said the airline's chief executive, Alan Joyce.
Qantas also slashed its full year pre-tax profit outlook to between $100 million and $200 million, down from its previous forecast of $500 million.
"Qantas today announced that, due to a rapid and significant deterioration of trading conditions in the past few weeks, it is revising its 2008-2009 full year profit before tax outlook downwards from around $500 million to between $100 million and $200 million,'' Qantas said in a statement.
The carrier said the profit forecast range is subject to no further changes in market conditions, fuel prices, and volatility in hedge accounting results.
The company will also reduce "flying capacity" by 5% after the company said it had experienced a sharp fall in trade conditions in the past few weeks.
BusinessDay, with AAP
April 14, 2009 - 9:32AM
Qantas will scrap up to 1750 jobs, including 500 management positions and has forecast a massive drop in its profit expectations, the airline revealed this morning.
Qantas also said it would sell about 10 aircraft and will cut freight capacity both internationally and domestically.
"Unfortunately, responding rapidly to declining economic conditions is going to have a direct impact on our staff. We employ over 34,000 people and we are striving to protect as many of their jobs as possible, but the capacity reductions to protect the long-term viability of the overall Qantas Group mean that up to 1250 equivalent full-time positions will be affected in addition to the management reductions being made," said the airline's chief executive, Alan Joyce.
Qantas also slashed its full year pre-tax profit outlook to between $100 million and $200 million, down from its previous forecast of $500 million.
"Qantas today announced that, due to a rapid and significant deterioration of trading conditions in the past few weeks, it is revising its 2008-2009 full year profit before tax outlook downwards from around $500 million to between $100 million and $200 million,'' Qantas said in a statement.
The carrier said the profit forecast range is subject to no further changes in market conditions, fuel prices, and volatility in hedge accounting results.
The company will also reduce "flying capacity" by 5% after the company said it had experienced a sharp fall in trade conditions in the past few weeks.
BusinessDay, with AAP
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Cleanout
Every downturn provides an opportunity for a huge cleanout.
AJ is not wasting this one.
Boston Consulting described the circumstances enjoyed by QF managment as "luxurious" with a lot of available fat to trim
AJ is not wasting this one.
Boston Consulting described the circumstances enjoyed by QF managment as "luxurious" with a lot of available fat to trim
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http://asx.com.au/asxpdf/20090414/pd...dbxm9rgp7v.pdf
500 Management jobs to go
1250 FTE jobs to be cut
5% reduction in capacity - Routes to be affected will be UK/US and South Africa
Around 10 aircraft grounded (744/767)
4 x A380's to be deferred
12 x 738's to be deferred
Profit downgrade to around $100M-$200M for Full year
500 Management jobs to go
1250 FTE jobs to be cut
5% reduction in capacity - Routes to be affected will be UK/US and South Africa
Around 10 aircraft grounded (744/767)
4 x A380's to be deferred
12 x 738's to be deferred
Profit downgrade to around $100M-$200M for Full year
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ASX Announcement...
From ASX Announcement....
500 Managers !!!!!!!!!!
“Qantas will implement the following measures:
• A further five per cent reduction in flying capacity, affecting frequency on Qantas Airlines international and domestic routes;
• Cuts to freight capacity, on both domestic and international routes;
• Grounding the equivalent of ten aircraft and making them available for sale;
• Deferring aircraft orders, including four Airbus A380s and twelve 737-800 aircraft;
• Exploring a number of options with Boeing about 787-800 aircraft including reducing, in the near-term, the number of aircraft to be delivered;
• Reducing capital expenditure by at least $800 million in 2009/2010, and;
• Removing an additional 500 management positions.
:
:
.....but the capacity reductions to protect the long-term viability of the overall Qantas Group mean that up to 1,250 equivalent full-time positions will be affected in addition to the management reductions being made.
• A further five per cent reduction in flying capacity, affecting frequency on Qantas Airlines international and domestic routes;
• Cuts to freight capacity, on both domestic and international routes;
• Grounding the equivalent of ten aircraft and making them available for sale;
• Deferring aircraft orders, including four Airbus A380s and twelve 737-800 aircraft;
• Exploring a number of options with Boeing about 787-800 aircraft including reducing, in the near-term, the number of aircraft to be delivered;
• Reducing capital expenditure by at least $800 million in 2009/2010, and;
• Removing an additional 500 management positions.
:
:
.....but the capacity reductions to protect the long-term viability of the overall Qantas Group mean that up to 1,250 equivalent full-time positions will be affected in addition to the management reductions being made.
500 Managers !!!!!!!!!!
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if they sacking 500 how many do they have left??!!
if qantas has say 34000 employees thats around 1 manager per 58 people.
If they doing away with a quarter of them ( wild guess for illustrative purposes) thats what I would say is over managed.
Love to know if the percentage of management being punted.
Whilst I dont have sympathy for some of the actions of some over the dixon years many of these people have families too. Losing your job is a pretty awful experience.
if qantas has say 34000 employees thats around 1 manager per 58 people.
If they doing away with a quarter of them ( wild guess for illustrative purposes) thats what I would say is over managed.
Love to know if the percentage of management being punted.
Whilst I dont have sympathy for some of the actions of some over the dixon years many of these people have families too. Losing your job is a pretty awful experience.
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Well I for one think this is wrong, and NO I don't work for Qantas and never have.
Okay IF they were LOSING money, but they still expect to make a PROFIT of somewhere between 100 and 200 MILLION.
Okay IF they were LOSING money, but they still expect to make a PROFIT of somewhere between 100 and 200 MILLION.
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$100 to $200 million profit against capital employed is a disaster and will reduce QF ability to borrow and service essential new fleet requirements.
The QF balance sheet has taken a beating this year, depressed share vale along with hard trading conditions and slim profit matgins is not a good place to be.
The QF balance sheet has taken a beating this year, depressed share vale along with hard trading conditions and slim profit matgins is not a good place to be.
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as you say not a good place to be.But qantas dont have any debt issues to deal with until Feb 2011 and have over 3 billion cash stashed away. Deferred delivery and further cost reductions will follow.
Despite the dramatic downturn qantas is still in a comparatively brilliant position compared to most airlines.
Despite the dramatic downturn qantas is still in a comparatively brilliant position compared to most airlines.
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flt crew ??
reduced capacity deferred deliveries? What do you think? Depends on whether you were over or under staffed as of yesterday. I suspect there will be some losses depending on leave to be taken etc.
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Qantas Chief Executive Officer Alan Joyce said that Qantas Airlines’ international services and
Qantas Freight were bearing the brunt of the decline in economic conditions, with a lesser impact
on Qantas domestic services, while Jetstar, the Qantas Frequent Flyer business and QantasLink
were continuing to perform well.
“Market conditions have deteriorated, especially in our international business. We are experiencing
significantly lower demand, particularly in premium classes.
Well, well. The airline that was handed over 'in great shape.' Isn't so great anymore.
The results of the systematic reduction in quality and service during the dixon era is starting to come home to roost. Not having a dig here at jetstar, I'm glad they are holding up, but the drop in premium customers base cannot all be attributed to the current financial meltdown.
The flogged out aeroplanes, under catered flights, delays caused by pig headed arrogance and determination to crush peoples belief in a fair days pay in a good airline, giving customers no choice and sheer contempt that upper level management has shown for loyal customers and staff is bearing fruit for all qantas shareholders to see.
Good luck AJ. I hope you can turn it around. Not looking good.
Qantas Freight were bearing the brunt of the decline in economic conditions, with a lesser impact
on Qantas domestic services, while Jetstar, the Qantas Frequent Flyer business and QantasLink
were continuing to perform well.
“Market conditions have deteriorated, especially in our international business. We are experiencing
significantly lower demand, particularly in premium classes.
Well, well. The airline that was handed over 'in great shape.' Isn't so great anymore.
The results of the systematic reduction in quality and service during the dixon era is starting to come home to roost. Not having a dig here at jetstar, I'm glad they are holding up, but the drop in premium customers base cannot all be attributed to the current financial meltdown.
The flogged out aeroplanes, under catered flights, delays caused by pig headed arrogance and determination to crush peoples belief in a fair days pay in a good airline, giving customers no choice and sheer contempt that upper level management has shown for loyal customers and staff is bearing fruit for all qantas shareholders to see.
Good luck AJ. I hope you can turn it around. Not looking good.
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Get Rid of The Warehouse of Excellence !!!!!!!!!!!!!!!!!
Why the 
is the company still keeping the Centre of Service Excellence....sell the bloody thing and relocate the staff who run it to more productive actitivites!!!!!!!!!!!!!!!!!!!!!!!!!!! Get your priorities straight!!!!!!! At this time of desperation....do you really think we could do with Exceptional Training!!!!!!!!!!!!!!!!!!!!!!!!!!
is the company still keeping the Centre of Service Excellence....sell the bloody thing and relocate the staff who run it to more productive actitivites!!!!!!!!!!!!!!!!!!!!!!!!!!! Get your priorities straight!!!!!!! At this time of desperation....do you really think we could do with Exceptional Training!!!!!!!!!!!!!!!!!!!!!!!!!!
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Here we go again, bleating from "Q" on how bad they have it, if this what happens when they still can make up to 200 Million, what would be the result if "Q" made a loss, impossible to imagine, would they be left with just "one" the leprecaun and he would have to look into a mirror and sack himself.
Time for the rusty razor blades, buckets of hot water and some good "weed", looks like its the end of the world and the world as we know it, if that awful "V" hadn't turned up on the scene or Delta coming then all probably would be ok, they got the biggest free kick of a life time 8 years ago, made "tricky dickie" a messiah, made huge profits at the expence of 16,000 Ansett workers, but the bleating just keeps on coming.
Time for the rusty razor blades, buckets of hot water and some good "weed", looks like its the end of the world and the world as we know it, if that awful "V" hadn't turned up on the scene or Delta coming then all probably would be ok, they got the biggest free kick of a life time 8 years ago, made "tricky dickie" a messiah, made huge profits at the expence of 16,000 Ansett workers, but the bleating just keeps on coming.
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timing
The ASX and market must remained informed. Rumours have been kicking around so that must be dealt with. Timing for the EBA is unfortunate for the pilots and has obvious advantages for the company armed with this knowledge.But planned to be for the EBA ?
Doubt it, but they will definitely take advantage of it just as the engineers took advantage of record trading conditions last year.How times change in this industry!!
Doubt it, but they will definitely take advantage of it just as the engineers took advantage of record trading conditions last year.How times change in this industry!!
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R.K. aka dhead
dicky here you go again moaning about ansett,get over it move on ......yes i agree ansett was a great airline and reg was a aussie icon but move on ....and so is the other one ,mmmmm what was their name oh well does not matter,we now have a major problem in australia not only in aviation but all sectors people losing their jobs and we wont be out of it for some time we all have to H.T.F.U 
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Mr Joyce
Can you PLEASE remove Management Bonus scheme so those remaining
can concentrate on managing the business and not their bonuses.
Its time to get the snouts out of the trough and back to the sharpening stone.
Can you PLEASE remove Management Bonus scheme so those remaining
can concentrate on managing the business and not their bonuses.
Its time to get the snouts out of the trough and back to the sharpening stone.
Last edited by Short_Circuit; 14th Apr 2009 at 06:27.