The head of Qantas Airways predicts the global aviation industry will cut 100,000 jobs by the end of 2008.
After announcing 1500 job cuts at Qantas last week, chief executive Geoff Dixon also said he expects the industry to consolidate into a few, very large players due to higher fuel costs.
Mr Dixon said on Tuesday that globalisation, accelerating amid permanently higher fuel prices, would result in a "new aviation world order".
Much potential cross-border merger activity between airlines is prevented by strict foreign ownership rules.
Qantas on Friday said it would axe 1500 jobs, scrap plans to hire 1200 more employees and retire up to 22 older aircraft to offset higher fuel costs.
Mr Dixon said Qantas had positioned itself to avoid being swallowed by another airline by investing in its business, cutting costs where appropriate, ordering more fuel efficient aircraft and developing a strong brand.
Mr Dixon said airlines around the world will be smaller and the average passenger will pay a lot more for them."
Asked about Air New Zealand, Mr Dixon said that he disagreed with claims by its chief executive Rob Fyfe that the carrier was too small to be a takeover target.
