This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx Qantas to Ax 1, 000 Jobs in Light of War April 9, 2003 By THE ASSOCIATED PRESS Filed at 9:19 a.m. ET SYDNEY, Australia (AP) -- Australian flag carrier Qantas said Wednesday it will lay off 1,000 workers, or 2.9 percent of its work force, before the end of June in response to the decline in business due to the war in Iraq and the deadly flu-like SARS virus. Qantas, which employs about 35,000 people, cut its profit forecasts late last month and reduced international services by up to 20 percent from April to July because the war, terrorism threats and SARS were causing people to fly less. Qantas chief executive Geoff Dixon said the staff cuts will cost the company about 60 million Australian dollars ($36 million). ``We regret the need for this action,'' Dixon said in a statement to the Australian Stock Exchange. ``However, it is vital we move quickly to protect our position in a very difficult and competitive industry.'' Dixon later told reporters that in the past few months, passenger numbers from Britain had fallen by about 10 percent, Hong Kong 25 percent, Europe 17 percent and Japan 20 percent from previous corresponding periods. As well as laying off 1,000 staff, Qantas will shed 400 jobs by not replacing retiring workers and others who leave the company, and will change 300 posts from full-time to part-time. ``I don't like letting a thousand people go, but I also realize as boss I've got to protect the other 34,000 people in the company,'' Dixon said, adding that shareholder interests also had to be protected. ``We have to make sure the company is viable, that it returns decent profits.'' Qantas has been one of the few major international carriers to perform well since the global downturn in the airline industry following the Sept. 11 attacks in the United States. In February, it announced that net profit for the six months ending Dec. 31 had more than doubled to 352.5 million Australian dollars ($211 million) from the same period a year earlier. Australian Services Union national assistant secretary Linda White said her members -- who work in administrative jobs with the airline -- were incensed at Qantas' ``deplorable, irresponsible action.'' Her union's members ``would seriously consider'' industrial action, White added without elaborating. Dixon and his chief financial officer Peter Gregg said the present troubles would not deter the company from a proposed alliance with Air New Zealand and made that deal even more urgent. ``It's about time that people recognized the aviation industry is in a lot of trouble around the world, consolidation is required, efficiencies are required,'' Gregg told reporters. The two airlines are seeking clearance from competition and corporate regulators in both countries for Qantas to buy a 22.5 percent stake in Air New Zealand, injecting 550 million New Zealand dollars ($300 million) into the carrier. New Zealand authorities were due to issue a preliminary ruling on the merger Thursday. Qantas' share price plunged nearly 4 percent to 3.08 Australian dollars ($1.85) after the company announced the job cuts. http://www.nytimes.com/aponline/business/AP-Qantas-Job-Cuts.html?ex=1050896086&ei=1&en=1622ab9948bc02dc HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company