SFGate: Qantas Airways to cut 1,500 jobs worldwide

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Friday, July 18, 2008 (AP)
Qantas Airways to cut 1,500 jobs worldwide



   (07-18) 00:17 PDT SYDNEY, Australia (AP) --
   Qantas Airways Ltd., Australia's flagship carrier, said Friday it will
slash 1,500 jobs worldwide and abandon plans to create 1,200 more as it
tries to deal with skyrocketing fuel costs.
   Chief executive Geoff Dixon said the cuts represent 4 percent of the
airline's total work force and include closing call centers in Tucson,
Arizona and London, causing the loss of 99 jobs. About 1,300 jobs will be
lost in Australia and the rest overseas.
   Qantas is also scrapping plans to increase its capacity by 8 percent in
the 12 months to mid-2009, with no growth now expected in that period,
Dixon said. Also, 22 older planes in Qantas' 228-strong fleet will be
retired.
   Qantas' budget subsidiary Jetstar will also be hit by the cuts, with its
hiring program suspended, including pilots. A Jetstar cabin crew and pilot
base in the southern city of Adelaide will be shut by September.
   "The jobs to be cut will be principally concentrated in non-operational
areas, although operational positions will also go," Dixon told reporters.
"Over 20 per cent of our management and head office support jobs will be
cut."
   Dixon said the cuts were necessary to ensure that Qantas survives what he
described as a crisis in the aviation industry caused by big rises in the
price of fuel. Other major airlines have announced job and capacity cuts
while raising fares and fees to offset higher spending on fuel.
   Fuel accounts for about 35 percent of Qantas' expenses, and rising fuel
costs are expected to add more than $1.95 billion to the company's fuel
bills to the year ending mid-2009.
   The first step in the job shedding plan would be to ask for voluntary
redundancies, Dixon said. -------------------------------------------------=
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Copyright 2008 AP

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