Qantas fires 6,000 employees, about a fifth of the workforce. Like other airlines, the Australian airline has been hit hard by the corona crisis. A large part of the fleet has been grounded for some time and the majority of the employees had already been sent on temporary leave.
Recently, the Australian government decided to close the country’s borders longer due to the corona virus. As a result, Qantas has already canceled most of its international flights until the end of October. Qantas actually planned to fly again in late July. Air traffic between Australia and New Zealand continues to flow over the Tasman Sea. But the turnovers have been “devastated,” said CEO Alan Joyce. He also indicated that he foresees significantly lower revenues over the next three years, which means that the company must be smaller. The now announced layoffs include cabin and ground crew and headquarters in Sydney.
Joyce also announced that the extended leave for approximately 15,000 employees will be extended. In the financial markets, the airline also wants to raise nearly 1.2 billion euros in capital. In addition, a hundred aircraft, including the fleet of A380s, remain on the ground and the purchase of new boxes is postponed.
Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is oliver.kjeldsen@economicinform.com
