Qantas to sack more than 6000 workers; launch $1.9 billion raising
Qantas says it will sack at least 6000 of its 29,000 employees and launch a $1.9 billion capital raising in response to the COVID-19 pandemic.
The airline said on Thursday morning the moves were part of a three-year plan to "accelerate its recovery from the COVID crisis and create a stronger platform for future profitability, long-term shareholder value and to preserve as many jobs as possible".
Qantas has requested a trading halt.
Qantas - like almost all airlines around the world - is struggling to deal with the fallout from the COVID-19 pandemic, which has forced it to ground most of its fleet.
The airline said it would retire its six remaining Boeing 747s immediately, six months ahead of schedule; ground around 100 aircraft including most of its international fleet for up to 12 months, and defer deliveries of new Boeing 787 Dreamliners and Airbus A320neos.
Around 15,000 employees will remain stood down from duties until flying returns. All Qantas' international passenger flights are suspended and it is flying about 15 per cent of its pre-pandemic domestic network.
Qantas chief executive Alan Joyce said the company entered the COVID-19 crisis in better shape than most airlines and had better prospects for recovery than most.
“But it will take years before international flying returns to what it was," he said.
“We have to position ourselves for several years where revenue will be much lower. And that means becoming a smaller airline in the short term."
Qantas said its board had asked Mr Joyce to remain CEO at least until the middle of 2023 to ensure “leadership, experience and stability”. At that point, Mr Joyce will have run the airline for almost 15 years.
More to come