Virgin Blue workers await the bad news…..Qantas CEO calls press conference this morning
The Herald Sun reports that while Qantas managers are expected to learn on Monday which of them are to lose their jobs, with the rest of about 2,000 workers expected to getting their letters on Wednesday, with some offered voluntary redundancy as the airline tries to offset the huge cost pressures caused by high fuel prices, Virgin Blue also is expected to announce today a new range of measures to deal with the profit-crippling crisis.
It is reported that senior Virgin executives last night were drafting an announcement which could see loss-making services cancelled and new aircraft deliveries curtailed.
Because of the crisis a question mark also hangs over whether Virgin will go ahead now or delay its plan for a trans-Pacific challenge to Qantas with its new offshoot V Australia Airlines.
It is believed that Qantas workers learned yesterday of the proposed split-round of job-cut announcements.
With Geoff Dixon having called a 10:00am Press Confernce in Sydney this morning, Qantas would neither confirm nor deny the proposed axings, labelling yesterday’s report by BusinessDaily that 2000 workers will go as “pure speculation”.
But BusinessDaily had the proposed axings confirmed by two sources, with both saying that they would be made across-the-board and would number about 2000, ranging from senior management to flight crew, engineers and ground staff.
The belt-tightening will affect all work sections and it will include cutting loss-making routes from domestic and international flight schedules.
The new austerity measures were foreshadowed on Tuesday in an email the Qantas workforce received from chief executive Geoff Dixon, saying, “The continuing increase in the price of oil has necessitated a further in-depth review of all aspects of the Qantas Group, particularly how our flying business will operate in this new cost environment.”
“However, the facts are that oil prices (unrefined crude as distinct from jet kerosene) staying at over $US140-plus a barrel has changed forever the way we do business.”
Irrespective of the fuel-induced gloom, Qantas and Virgin Blue are starting to see a favourable market response to the way they are meeting the fuel challenge.
Qantas shares improved 4 per cent yesterday, closing 13 higher at $3.30.
Virgin Blue stock has risen 30 per cent, or 17, since Tuesday’s announcement by the Toll Group that it would hand its 62.7 per cent airline stake to shareholders.
Virgin shares ended trading yesterday at 67.
A Report by The Mole from The Herald Sun
John Alwyn-Jones
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