Australian airline to cut 1,000 jobs

7 Dec HSN News

Australia's national carrier Qantas has warned that it faces 'immense' challenges ahead, saying that the airline will cut one thousand jobs over the next year.

On Thursday, Qantas chief executive Alan Joyce said the airline had witnessed a "marked" deterioration and a profit downgrade amounting to a six-month loss of up to 300 million Australian dollars (about USD 270 million).

According to Joyce, the "extraordinary circumstances" Qantas is struggling with include record fuel costs, a strong Australian dollar, and fierce competition from subsidized rivals. "The challenges we now face are immense." "Since the global financial crisis, Qantas has confronted a fiercely difficult operating environment - including the strong Australian dollar and record jet fuel costs, which have exacerbated Qantas high cost base," the chief executive added.

He said "urgent" action including job cuts of "at least 1,000" were needed to control the situation.

The measures include a 38-percent cut in the salaries of the Qantas board. Salaries are to be frozen for executives and supplier costs reviewed.

"We have reduced the group's unit costs, excluding fuel, by a total of 19 percent since FY09, including by five percent in FY13. But these actions are not enough to deal with the current situation."