Qantas’ announcement this week of severe job cuts comes as little surprise. The COVID-19 pandemic and closed borders have brought the global aviation industry to its knees.
According to global travel data provider OAG (formerly the Official Airline Guide), this week airlines worldwide scheduled about 63% fewer flights to the week a year ago. In Australia, there were about 78% fewer flights.
Qantas’ decision to shed about 6,000 of its 29,000 workers (a further 15,000 have been stood down without pay) is part of its plan to reduce costs by A$15 billion over three years of anticipated “lower activity”.
It would be years before international flying returned to what it was, said Qantas chief executive Alan Joyce:
We have to position ourselves for several years where revenue will be much lower, and that means becoming a smaller airline in the short term.
Authors: The Conversation