Qantas (ASX:QAN) to replace airport service desks with kiosks, app

Airline continues its post-COVID-19 cost-cutting drive, but how will customers feel when there are delays and cancellations at the terminal?

| More on:
service desk closed indicating cost cutting in struggling travel shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Qantas Airways Limited (ASX: QAN) will be permanently closing its sales desks at airports and reducing the opening hours of lost luggage desks.

This means customers will have to self-service any cancellations and 11th-hour changes through an electronic kiosk, online or on the telephone.

Manned check-in desks will be retained.

The airline confirmed the changes to The Motley Fool on Friday.

"We can't ignore the efficiencies that come with removing the traditional sales desks, particularly in the current environment," said Qantas executive manager Phil Capps.

"The main driver is an increasing shift towards people using our app to check in and manage their own bookings, particularly as we expand what the app can do. This was happening before COVID-19 but it has accelerated significantly since." 

He said "most" employees would be redeployed and about 100 job cuts would come through voluntary redundancies.

The Motley Fool understands the changes will come in the first half of next year. Qantas will be rolling out new functionality in its app and website in January that will contribute to the transition.

Impact on Qantas customers and workers

The Australian Services Union (ASU) expects the changes to result in "hundreds" of job losses.

The union's assistant national secretary Emeline Gaske said removal of in-person services would impact the most vulnerable customers the most.

"This is a huge problem for all passengers but especially for those needing a little extra help such as infrequent travellers, older Australians and people with a disability," she said.

"They're abolishing the sales desk and the service desk including for premium and frequent flyers, meaning everything will be self service and if you have a problem – you're on your own."

Gaske claimed Qantas had already trialled – then aborted – technology to replace service desks back in February.

"They're reheating this proposal at the worst possible time – during a pandemic, in a busy holiday season, as borders are starting to re-open. It's a recipe for disaster," she said.

"Whatever can be put online without massive disruption to passengers has already been done. What they're removing now is the 'last resort' customer service people need when all else fails."

This latest cost-cutting measure comes on top of a September announcement that Qantas would cut more than 2,400 ground crew jobs. The airline just this week added 48,000 seats and 282 flights to its weekly schedule after the Victoria-NSW border was reopened.

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. 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 Share Market News

a group of enthusiastic people dash out of open doors as though in a hurry to purchase something. The picture features the legs of some people, faces of others and people in the background trying to get through the crowd.
Opinions

Why I'm calling this ASX reporting season 'buying season'

Reporting season might come in like a wrecking ball... and that's fine by me.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX shares could rise 20% to 40%

Big returns could be on offer from these stocks according to analysts.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Share Market News

Good ASX news! Australia's 'one of the cleanest markets in the world'

Investors can sleep well at night knowing our market system has integrity.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Market News

5 Australian shares to buy and hold forever

Analysts think these buy-rated shares would be great options for investors.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Share Market News

Could Fortescue shares fall a further 14% from here?

Bell Potter is tipping the mining giant's shares to continue sinking.

Read more »

Happy work colleagues give each other a fist pump.
Share Market News

Here are the top 10 ASX 200 shares today

The ASX actually finished its week on a high note today.

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Broker Notes

Buy one, sell the other: Goldman's take on these 2 ASX retail shares

Despite high interest rates and inflation, ASX retail shares have been on a strong run.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Bellevue Gold, Chrysos, Meteoric Resources, and Newmont shares are falling today

These shares are having a tough finish to the week. But why?

Read more »