18 July 2008

Qantas to shed 1,500 jobs

Soaring fuel costs and changing economic conditions have forced Qantas to cut 1,500 staff from its 36,000-strong global workforce.

The majority - 1,300 - will go in Australia, with the remainder overseas.

Call centres in London and Tuscon are to be closed with the loss of 99 jobs.

The airline has also abandoned plans to hire a further 1,200 employees after cutting planned capacity growth from eight per cent to zero in 2008-09.

Most of the jobs would go in "non-operational areas," according to chief executive Geoff Dixon.

More than 20% of management and head office support jobs are to go by December.

Some compulsory redudancies will be necessary, according to Dixon. 

The airline is introduced a recruitment and executive pay freeze "for the forseeable future".

Dixon described conditions in the global airline industry as being "as tough as I've seen it".

He added: "It is not just aviation being hurt by oil prices, it is other things such as food."

Qantas has decided to retire up to 22 older aircraft from its fleet of 228.

Dixon said the cuts would involve a reduction in capacity on some routes but not the "wholesale elimination" of routes.

by Phil Davies 

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