Qantas bags AUD1 billion in new funding
Qantas Airways has managed to secure A$1.05 billion ($628 million) of funding to help it through the worst crisis in its history.
It secured the loan on seven of its 11 owned Boeing 787-9 aircraft, which it bought for cash over the past few years.
Shares were up more than 20% on the news of extra liquidity.
Qantas said it still has several billion dollars of cash and other unencumbered assets available if needed.
"Over the past few years we’ve significantly strengthened our balance sheet and we’re now able to draw on that strength under what are exceptional circumstances," Qantas Group CEO Alan Joyce said in a statement.
"Everything we are doing at the moment is focused on guaranteeing the long-term future of the national carrier, including making sure our people have jobs to return to when we have work for them again," he said.
However the airline was slammed by the Transport Workers’ Union for not using the newly acquired funds to pay workers taken off active duty.
"There has been no commitment from Qantas to compensate workers for the losses they will take as they shoulder the burden of this crisis, by being forced to take accrued, future and unpaid leave. This is in contrast to Virgin which today did agree to talks on compensation.
The union called on the Federal Government to take partial ownership of Qantas in exchange for financial aid.
"We welcome the liquidity announcement but we are disturbed that this is merely a move by a management team hell bent on avoiding any public stake in a company that clearly needs it," said TWU national secretary Michael Kaine.
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