Wednesday, February 26, 2014

Qantas cuts 5000 jobs, ends Perth


SYDNEY (AFP) - Struggling Australian carrier Qantas on Thursday said it will take measures including cutting 5,000 jobs and ending its Perth-Singapore route in a major shake-up after a first-half net loss of A$235 million (S$267 million), warning of more pain ahead.


The airline, battling record fuel costs and fierce competition from subsidised rivals, is working to slash costs by A$2 billion over three years as it faces some of its toughest ever conditions.


The carrier's underlying loss before tax in the six months to December 31 - the airline's preferred measure of financial performance - came in at A$252 million, a figure chief executive Alan Joyce called 'unacceptable and unsustainable'.


'Hard decisions will be necessary to overcome the challenges we face and build a stronger business,' said Mr Joyce, who will take a 36 per cent wage cut.


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