Qantas announces a second wave of redundancies

Qantas is rumored to be announcing a reconstruction plan this week which will include a second wave of redundancies within a year. The Financial Times reports that the airline plans to make cuts in senior and middle management, a decision made under new chief executive Alan Joyce.

 Staff and unions will be told the job losses are needed to match reduced capacity requirements as passenger revenues have deteriorated.

Over 100 senior jobs are likely to be cut in addition to the 1500 cuts that Qantas announced last year.

An analyst for the Sydney Morning Herald said that the airline was too overstaffed in its senior executive ranks.

What has Qantas got? They’ve got a chief executive, chief financial officer, a treasurer, they’ve got a couple of people in investor relations, a few in media relations, then there is government relations….

They were set up for a slightly different era as they were once a government department and these things take years and years to unwind.

Airlines around the world have been witnessing a massive drop in passenger loads in February, with Singapore Airlines reporting one of its biggest monthly drops on record. European airlines Air France-KLM and Lufthansa also announced more capacity reductions. 

The Centre for Asia Pacific Aviation, an industry consultancy, last week warned that airlines in Asia could only be weeks away from grounding up to 10 per cent of their fleets as they contend with weak revenues, falling passenger loads and excess capacity. 

While Australian Airlines are all suffering under the economic recession, the news will only further damage Qantas’ reputation with the Australian public. It’s hard to find positive articles about Qantas at the moment, but seeing as they are Australia’s largest airline (and would probably employ the largest amount of staff) it’s no wonder the media is critiquing their recent job cutbacks.

Advertisements
Published in: on March 23, 2009 at 11:20 am  Leave a Comment  

The URI to TrackBack this entry is: https://financialexpress.wordpress.com/2009/03/23/qantas-announces-a-second-wave-of-redundancies/trackback/

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: