Qantas to cut jobs in management, operations

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Qantas says that 1,500 of the planned 5,000 job cuts will be in non-operational roles, with others to come from engineering, catering and operational positions.

The job cuts are part of a A$2 billion ($1.8 billion) cost cutting programme for the carrier following the announcement of a A$252 million underlying loss for the first half of the 2014 financial year.

A number of the operational roles will be cut as a result of its fleet and network restructuring, which will see it retire its six oldest Boeing 747s and reschedule its Melbourne-Dubai-London flights to minimise the ground time at London.

Other jobs will go from the previously announced closure of its Avalon heavy maintenance operations and Adelaide catering base, as well as a restructure of its line maintenance operations.

In addition to the job cuts, the airline will extend a wage freeze on all executive positions made in December 2013 to all staff, with no pay rises to be considered until the airline returns to profitability.

Qantas chief executive Alan Joyce expressed regret over the job losses, but added that they were necessary for the long-term viability of the carrier.

“At the end of this transformation, Qantas will remain an employer of more than 27,000 people, the vast majority based in Australia – and we will be a better and more competitive company,” he said.