Australian airline Qantas says it plans to cut at least a 1000 jobs over the next year, after reporting a pre-tax loss of between $A250 million to $A300 million in the six months to the end of December.
Photo: RNZ
The airline said on Thursday that trading conditions deteriorated markedly in November, with a steeper decline in passenger loads and yields, AAP reports.
Chief executive Alan Joyce said the airline's circumstances demanded urgent action. "We will do whatever we need to do to secure the Qantas Group's future. The challenges we now face are immense - but we will overcome them and we will continue to build a stronger and better Qantas for Australia."
Qantas is to accelerate a cost-cutting programme to save about $A2 billion over the next three years, which includes the loss of at least 1000 jobs.
Mr Joyce and Qantas board members will take a pay cut. Executive team members will also have their pay frozen, with no bonuses to be paid this financial year.
Qantas will review its spending with its top 100 suppliers and reduce overheads and begin a review of capital expenditure and its structure to identify potential sources of capital.
Mr Joyce said the airline was facing the toughest market conditions ever.
Sales have deteriorated over the past few months as Qantas engages in a war of words over foreign ownership with rival Virgin Australia, the ABC reports.
Mr Joyce said Virgin Australia has created an unprecedented market distortion through its backing by major shareholders Air New Zealand, Singapore Airline and Etihad.
Qantas' competitors in the international market - almost all owned or generously supported by their governments - have increased capacity to pursue Australian dollar profits, changing the shape of the market permanently, he said.
