Qantas has announced a post-COVID recovery plan which will see a wide-ranging restructure of its operations. The changes will see deep job losses, aircraft retirements, as well as an injection of capital. The extent of the announcement shows the difficulties the aviation industry currently faces.
The COVID Recovery Plan
Qantas has identified three main areas that it will focus on. Firstly, it sets out to Rightsize the group’s workforce. Secondly, it will Restructure to deliver cost savings. Finally, it will Recapitalise through an equity raising.
Qantas has called out the following big-ticket items
- Reducing the Group’s workforce by at least 6,000 roles across all parts of the business.
- Continuing the stand down for 15,000 employees,
- Retiring Qantas’ six remaining 747s immediately, six months ahead of schedule.
- Grounding up to 100 aircraft for up to 12 months (some for longer), including most of the international fleet. The majority are expected to ultimately go back in to service but some leased aircraft may be returned as they fall due.
- A321neo and 787-9 fleet deliveries have been deferred to meet the Group’s requirements.
Behind these decisions are the expectations that Qantas as of its international operations. In fact, it sees little chance of these operations returning for at least 12 months.
I think we all knew that the airlines were doing it hard. This shows just how hard things are for Qantas. At the end of this, it will be a smaller airline that it is now.
While we knew this – this now puts some solid number on it. And, unfortunately, it means that less staff are needed. 6,000 less at that.
For the Qantas Frequent Flyer, there is no immediate effect. However, it does give a good indication that they may not be flying much over the next 12 months.
But let’s face it. For now, that probably doesn’t matter. 6,000 employees have lost their jobs, and hopefully, they will be getting the support they need.