Qantas announces more and more cuts
Big news from Qantas - 6000 jobs to go, 15,000 stood-down staff to stay stood-down for longer, 100 planes (mostly international fleet) grounded for 12 months; retire 6 747s. CEO Joyce calls it "a restructure to survive", and a three year recovery plan.
Sure is, but not really surprising.
On one hand I feel for the impacted employees. On the other I can understand why QANTAS is doing this. The reality is that aviation pre COVID19 won't be fully restored to 2022 the earliest.
Air NZ cut 30% of their workforce and both QANTAS and Air NZ are considered the better managed and operated airlines globally. Those Mid East and Asian airlines will hit their governments and the Europeans, will be slash and burn or go to the wall.
With the US, while there is no national approach to COVID19 air travel levels domestically will be higher than the rest of the world, their international legs will be cut, so those airlines will cut too. As it is a seriously competitive market, some will probably go into Chapter 11 protection.
Until air travel frees up internationally, aviation will struggle. I saw the nonsense on the online news articles with comments, blaming the cuts on state border closures. Utter cr@p. It has some impact, but the reality is NSW/Victoria is not closed and this leg is one of the most travelled globally pre COVID19. Demand has plummeted, as understandably people are avoiding unnecessary travel and won't until they are comfortable that COVID19 is under control nationally. Freeing up the borders will not turn the issue for QANTAS as international tourism and business has disappeared. That is where QANTAS has cut hard.
I hope that the miracle vaccine appears next year, or we will have two years of hell.