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Qantas to cut about 1,000 jobs
Source: Agencies |
August 17, 2011, Wednesday
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Print Edition
Print Edition
QANTAS Airways Ltd said yesterday it plans to cut about 1,000 jobs as part of a shakeup of its international business that includes the launch of a new Asia-based airline.
The Australian carrier, which is struggling to offset losses from its international operations, will buy between 106 and 110 Airbus A320 aircraft, and retire older planes as part of the five-year plan.
It will also defer the delivery of six Airbus A380 superjumbo planes for up to six years. The A380s were earmarked for long-haul routes to destinations such as London on which Qantas has faced increased competition.
Qantas International has forecast a loss of A$200 million (US$210 million) for the 2011 financial year due to stiff competition and costs that the airline says are 20 percent higher than its key competitors such as Emirates.
Under the plan, Qantas will invest in a new premium airline in Asia that will operate under a different name. It will also launch a budget airline in Japan to be called Jetstar Japan in partnership with Japan Airlines Co and Mitsubishi Corp.
The Australian carrier, which is struggling to offset losses from its international operations, will buy between 106 and 110 Airbus A320 aircraft, and retire older planes as part of the five-year plan.
It will also defer the delivery of six Airbus A380 superjumbo planes for up to six years. The A380s were earmarked for long-haul routes to destinations such as London on which Qantas has faced increased competition.
Qantas International has forecast a loss of A$200 million (US$210 million) for the 2011 financial year due to stiff competition and costs that the airline says are 20 percent higher than its key competitors such as Emirates.
Under the plan, Qantas will invest in a new premium airline in Asia that will operate under a different name. It will also launch a budget airline in Japan to be called Jetstar Japan in partnership with Japan Airlines Co and Mitsubishi Corp.
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