Qantas to cut 2,420 more jobs

In addition to the 6,000 already to be terminated, in-house ground crew roles are to be outsourced as part of the company’s Covid-19 recovery plan.

| More on:
nose of Qantas plane WUNALA

Image Source: Qantas

Qantas Airways Limited (ASX: QAN) has announced a plan to outsource ground crew in order to axe up to 2,420 jobs.

The airline revealed its intentions on Tuesday afternoon, saying it had briefed staff and unions earlier in the day.

“Outsourcing this work to specialist ground handlers would save an estimated $100 million in operating costs each year,” said Qantas Domestic boss Andrew David.

“Today’s announcement will be very tough for our hard-working teams, most of whom have already been stood down for months without work. This obviously adds to the uncertainty but this is the unfortunate reality of what COVID-19 has done to our industry.”

The outsourcing reviews would take place in three different areas:

  1. Outsourcing ground-handling operations at 10 Australian airports. This would cut up to 2,000 jobs.
  2. Outsourcing bus services for customers and staff at Sydney Airport. This could impact up to 50 in-house employees.
  3. Jetstar will outsource ground handling at 6 Australian airports. There are 370 jobs under threat from this move.

Qantas stated no customer-facing roles would be impacted by the proposals.

Other airlines do it already

Jetstar chief Gareth Evans said “every major airline” in the world outsources ground-handling operations.

“These ground handlers provide these services to many airlines at airports, rather than just one, and provide scalable resources, which makes them very cost effective,” he said.

“Contracting this work out also reduces the capital spend required each year. As an example, Qantas and Jetstar would need to invest a further $100 million on ground handling equipment over the next five years, such as tugs and bag loaders, if the work is kept in-house.”

The outsourcing revelations follow last week’s financial results, which saw Qantas lose $2.7 billion before tax for the 2020 financial year.

Qantas chief executive Alan Joyce at the time begged for national consistency in state border closures, which is crippling the company’s operations.

“We still don’t understand why states with zero cases for a long time have borders closed to states with zero cases. That doesn’t seem to make any medical sense or any advice that we  have seen.”

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Coronavirus News

a girl stands in an apple orchard holding two red apples in raised arms with a happy, celebratory look on her face with a large smile and a pretty country background to the picture.

CBA reveals the Australian economy’s leading state amid COVID surge

Key points COVID-19 variants continue to impact Australia’s economy Tasmania again leads the states in the past quarter’s economic performance …

Read more »

Rapid Antigen Test taking place.
Share Market News

Why is Ellume hitting headlines today?

Key points Ellume is in the spotlight as the United States Government looks to buy another 500 million RATs Additionally, …

Read more »

A woman looks quizzical as she looks at a graph of the share market.
Share Market News

Inghams (ASX:ING) share price sinks as Omicron bites

The Inghams Group Ltd (ASX: ING) share price is falling, down 7% in early trading, after the poultry company told …

Read more »

A female scientist sits at a microscope in a Universal Biosensors laboratory smiling while her colleague checks beakers of COVID-19 samples in the background.
Healthcare Shares

Universal Biosensors (ASX:UBI) share price up on “global first” 30-second COVID-19 test

The Universal Biosensors Inc (ASX: UBI) share price is in the green after the company announced a licensing deal to commercialise …

Read more »

a young girl smiles as she is about to get a nasal swab test from a medical practitioner while her masked parent looks on in the background.
Healthcare Shares

Rhinomed (ASX:RNO) share price surges 9% on world-first trial result

The Rhinomed Ltd (ASX: RNO) share price is soaring today on the back of clinical trial results into a new COVID-19 …

Read more »

woman and two men in hardhats talking at mine site
Share Fallers

Here’s why the Lithium Energy (ASX:LEL) share price is tumbling 6% today

The Lithium Energy Ltd (ASX: LEL) share price is plunging today after a company update on its operations in Argentina. Shares …

Read more »

A woman smiles as she crosses the tarmac, happy to be boarding a plane at the airport and travelling again.
Travel Shares

Here’s why ASX 200 travel shares are taking off today

The S&P/ASX 200 Index (ASX: XJO) is following the lead of US markets and heading higher. At the time of writing, …

Read more »

asx share price swing represented by old lady on swing
Healthcare Shares

IDT (ASX:IDT) share price swings as CEO lauds mRNA tech in fight against Omicron

The IDT Australia Limited (ASX: IDT) share price has been up and down today, currently down 2.46% to 59.5 cents …

Read more »