For someone who as the CEO of QANTAS has spent his entire existence turning QANTAS from one of the worlds premier airlines to simply another useless business trying to promote Jetstar instead. It came to light a few years ago his attempt to take over the Asian market failed. There were a heap of leased Jetstar aircraft lying idle on runways while QANTAS picked up the tab for this. Now he prattles on about saving QANTAS. Give me a break. These people cannot stand the 2 months without pay, they will find other jobs. There is more… From Social media….
“David Cullen said There is a far more important question that desperately needs to be raised and asked: Where did Commonwealth politicians get the power and authority from to subsidise and bail-out aviation, when in the 1937 referendum, the people of the commonwealth said NO to the Commonwealth legislating power with respect to air navigation and aircraft?”
Qantas, Jetstar to stand down 20,000 workers due to coronavirus, Alan Joyce says national carrier’s future is at stake
Qantas and Jetstar have announced that two-thirds of their 30,000 employees will be temporarily stood down from late March until at least the end of May.
- Qantas and Jetstar will suspend all international flights as they stand down staff
- CEO Alan Joyce said he had to act to guarantee the future of the national carrier
- All existing bookings can be converted into a future travel credit
The group will also suspend all international flights, after the Federal Government told all Australians to avoid international travel.
“The efforts to contain the spread of coronavirus have led to a huge drop in travel demand, the likes of which we have never seen before,” Qantas CEO Alan Joyce said.
“This is having a devastating impact on all airlines.
“With the huge drop in revenue we’re facing, we have to make difficult decisions to guarantee the future of the national carrier.”
Some scheduled international Qantas flights will continue until late March to help people return home to Australia.
“As the national carrier, Qantas is in ongoing discussions with the Federal Government about continuation of some strategic links,” Qantas said in a statement to the ASX.
More than 150 aircraft have been temporarily grounded, including all of Qantas’s A380s, 747s and B787-9s and Jetstar’s B787-8s.
“Discussions are progressing with airports and government about parking for these aircraft,” Qantas said.
“Essential domestic, regional and freight connections will be maintained as much as possible.”
Senior management executives and the board have given up their salaries until at least the end of this financial year.
They will join the chairman Richard Goyder and Mr Joyce in taking no pay.
The payment of a $201 million shareholder dividend will be deferred until September.
Qantas in a fight for survival, Joyce says
“This is a fight and survival of the fittest, and we are the fittest,” Mr Joyce said.
“I know a lot of airlines will go under. We won’t because we’re [taking] dramatic, drastic actions … to make sure the national carrier survives.
“The reality is we’ll have 150 aircraft on the ground and sadly there’s no work for most of our people.”
He said that rather than losing highly skilled employees, the company decided that standing down two-thirds of its workers until at least the end of May was the best option.
“Most of our people will be using various types of paid leave during this time, and we’ll have a number of support options in place,” he said.
“We’re also talking to our partners like Woolworths about temporary job opportunities for our people.
“This is a very hard set of circumstances for our people, as it is for lots of parts of the community right now.”
Mr Joyce said no airline in the world was immune to the impact, with a number of the world’s leading carriers making deep cuts to flying schedules and jobs.
“Our strong balance sheet means we’ve entered this crisis in better shape than most and we’re taking action to make sure we can ride this out,” he said.
Customers to get credited for cancelled flights
Customers who have already booked flights with Qantas or Jetstar will receive travel credits valid for future use.
Affected customers will be contacted directly from next Monday.
“Any customers travelling before the end of May who wish to change their booking are also eligible to receive a travel credit instead,” Qantas said.
If flights were booked through a travel agency or third-party website, customers will need to contact the agency directly.
The airlines had already announced cuts to 90 per cent of international flights and about 60 per cent of domestic flights on Tuesday.
And on Wednesday, Virgin Australia said it was grounding its international fleet in response to the COVID-19 pandemic.
Union says Qantas forcing workers to bail it out
Transport Workers Union national secretary Michael Kaine said Qantas was forcing its workforce to bail it out, by standing them down and seizing future leave balances that were yet to be accrued.
“It means when the airline returns to profitability, its share price will soar and executives will return to massive bonuses on the back of workers sacrificing their entitlements,” he said.
“The Qantas announcement today amounts to workers bailing out the airline.”
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