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Qantas to cut 5,000 jobs, posts $211 million loss

"The Australian domestic industry may be distorted simply by current Australian aviation policy," he said.
Qantas to reduce 5,000 jobs, posts $211 million loss - The Particular Hindu

Qantas Airways on Thursday mentioned it'll cut 5,000 work and posted a first-half loss regarding 235 million Australian dollars ($211 million) amid tougher competition, sending its shares down more than 7 per cent.

The Australian government is contemplating reducing foreign ownership restrictions legislated within 1992 ahead regarding the state-owned airline was privatized, which may enable the airline to receive any money infusion through bringing inside a new investor or perhaps investors.





State-owned Air New Zealand, which usually http://www.shemalechat.info has 24.5 percent stake in Qantas' significant rival Virgin Australia, posted accurate documentation half-year revenue associated with 140 million New Zealand dollars ($116 million) upon Thursday.
business information

losses

"We are usually facing the actual toughest conditions Qantas features actually seen," Mr. Joyce said. "This performance simply by our airlines will be unacceptable and the current situation is actually unsustainable," he said, referring in order to Qantas and its Jetstar Team subsidiary.
Qantas Airways Ltd. chief executive Alan Joyce mentioned your Qantas fleet would be reduced from 11 in order to seven aircraft types, and also wages would be frozen until your airline made a profit. He would discuss the job cuts along with unions upon Friday.

Qantas argues the 49 % cap about foreign ownership, 35 % restrict upon ownership by foreign airlines and 25 per cent cap upon ownership simply by any single foreign investor place it with a disadvantage against state-owned competitors inside raising capital.
That outcome would become a 40 percent improvement about the exact same time period a year earlier, and came despite a 1.6 percent fall within revenue for you to NZ$2.3 billion.



"Late last year, these three foreign airline shareholders invested greater than AU$300 million in Virgin Australia. That Will capital injection offers supported continued domestic capacity growth by Virgin Australia despite its developing losses," he said.
The Australian flag carrier mentioned the 5,000 jobs will be cut as section of plans to lessen costs simply by AU$2 billion over three years. The Particular occupation cuts add up to slightly below one sixth regarding Qantas' workforce of 32,000.

Qantas shares had been on this list of worst performers around the Australian stock trading game in Thursday, falling 7.1 per cent in order to AU$1.18 by 0235 GMT.
Australia had been "hit by a giant wave associated with international airline capacity," with a 46 % increase in passenger seats since 2009, greater than double your global increase associated with 21 percent inside the identical period, he said.
Qantas warned in December that its loss could be as substantial as AU$300 million and that 1,000 work will be shed. In Which warning resulted in Qantas credit card debt getting downgraded through investment grade for you to junk.

Keywords: Qantas Airways, H1 earnings, Alan Joyce, downsizing

The government has additionally discussed with Qantas providing a new standby financial debt facility backed by a government guarantee, for which Qantas would pay a fee.
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The loss for that six several weeks via December 2013 followed an AU$111 million ($114 million) profit for your same period per year earlier. the loss excluding one-time elements was AU$252 million. Your airline has struggled upon international routes and its dominance on Australian domestic routes has been eroded.
Mr. Joyce place much of the blame for poor Qantas result on an "uneven playing field" along with Virgin Australia, that is 64 percent owned by three state-owned carriers Air New Zealand, Etihad Airways along with Singapore Airlines.
layoffs as well as downsizing
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