QANTAS DRAWS UP NEW PLAN TO DEAL WITH COVID-19 IMPACTS
IMPACT ON THE QANTAS WORKFORCE:
* Some 6,000 jobs to be cut from the group’s 29,000 workforce, equivalent to 20.7 per cent.
* Separate to the job losses, 15,000 staff will remain stood down without pay, on leave without pay or on annual leave, as applicable, for some time.
* The job losses and stand down measures affect both Qantas and Jetstar.
* Qantas will offer voluntary redundancies and career support for those laid off.
* Some 8,000 staff are expected to return to work by the end of July.
WHERE THE JOB LOSSES WILL BE:
* 1,450 in non-operational roles, mainly corporate.
* 1,500 in ground operations, such as baggage handling and ramp operations.
* 630 in engineering operations.
* 220 pilots.
* 1,050 cabin crew.
COST REDUCTIONS AND REDUCED FLIGHT OPERATIONS:
* Qantas wants to reduce costs by $15 billion over three years due to reduced aviation activity.
* Around 100 aircraft to be grounded for up to 12 months, some for longer.
* Qantas will retire its six remaining Boeing 747s, six months ahead of schedule.
* All international flights, except to New Zealand, are cancelled until at least late October.
* Plans to raise $1.9 billion through a share sale.
* Share placement issue price is $3.65 per share, which is 12.9 pct above Wednesday’s close of $4.19
* Proceeds will be used to fund the Qantas Group’s recovery from the economic impact of the pandemic.