Tough times call for tough measures down under. Australia’s Qantas Airways will defer the delivery of four Airbus A380s and 12 Boeing 737-800s as worsening economic conditions force it to cut its pre-tax profit forecast by up to 80%.
Jobs are also at stake. Qantas and its low-cost subsidiary Jetstar will remove 500 management jobs, in addition to 90 management job cuts announced in March. Up to another to 1,250 jobs will be affected, says the airline’s CEO Alan Joyce.
Finally, the carrier is in talks with Boeing to reduce the delivery of 787-8 aircraft over the near term. It will also ground 10 aircraft and make them available for sale. It is also slashing passenger and freight capacity for domestic and international routes.
Other Asia Pacific carriers are responding in similar fashion as the economic crisis bites in. Is this enough, though? Only time will tell as this downturn pans out.