Qantas Airways announced that it will be cutting about 500 engineering jobs in order to "adapt to modern technology." According to the company, the staff reduction is part of an attempt to minimize the problems its experienced with its international flights unit.
The job losses are a sign that airlines near the Asian markets continue to struggle with high fuel costs and an insecure consumer market, which has also led to job cuts among U.S. and European airlines.
In total, Qantas has cut about 2,000 jobs since August after Alan Joyce, the companies chief executive revealed a new Asian-focused scheme. This plan involves terminating routes that are less successful and launching new offshore carriers in order to save money.
Mr. Joyce stated that the company's "cost base in heavy maintenance is 30% higher than that of our competitors-we must close this gap to secure Qantas's future viability and success."
Qantas' annual report for the year totaled the company's staff numbers to 36,000. It also mentioned Monday that it does plan to add "over 30,000 people in Australia" after the current roles become available.
Mr. Joyce is expecting Qantas will maintain its position as one of the only airlines in the world that is considered "investment-grade." This month it also postponed the transport of two Airbus A380 superjumbos in order to alleviate its current expenses.
The engineering jobs cuts are part of an effort by the company to reorganize. Unfortunately, Qantas has had to close one of its three Australian heavy maintenance bases. It also plans to shut down its Tullamarine bureau in Melbourne by this August. Furthermore, the company may consolidate its Brisbane facility and its office in Avalon on the outskirts of Melbourne.
However, Mr. Joyce told reporters that the Avalon location will likely be closed down, but not immediately because it will continue to do work on the Boeing 747s and 767s.
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