Qantas cutting jobs, raising capital to weather COVID-19 storm

Alan Joyce said the pandemic would affect the airline for many years

Under the proposals, as many as 6,000 jobs will be lost, while the Australian flag-carrier will seek to raise to $1.9 billion in fresh liquidity.

"We have to position ourselves for several years when revenue will be much lower", Qantas CEO Alan Joyce said of the three-year plan.

The airline will be offering voluntary redundancies "as much as possible" as well as letting stood down workers get access to their accrued leave. "IATA - the peak body for airlines - says it will take more than three years for global travel to return to 2019 levels", he also expects Qantas to park all worldwide operations - including short haul - for at least a year.

Qantas said that it would fly around 40% of its pre-COVID domestic capacity in July and hoped to increase this level in the coming months.

Separate to the 6000 roles to be axed, Qantas will keep about 15,000 staff temporarily stood down. "What makes this even harder is that right before this crisis hit, we were actively recruiting pilots, cabin crew and ground staff".

There will be 6000 job losses, many of whom have worked at Qantas for decades.

Joyce said the airline would immediately retire all 747 aircraft and orders for new aircraft would be postponed. We're now facing a sudden reversal of fortune that is no one's fault, but is very hard to accept.

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The airline also said nearly 100 of its aircraft will remain grounded for up to 12 months, while its remaining six Boeing 747 aircraft will be retired six months earlier than scheduled.

Meanwhile, with the expectation that global travel will not be resuming anytime soon, Qantas has also parked its A-380s for three years.

The majority of Qantas' plane are expected to ultimately go back in to service, but some leased aircraft may be returned as they fall due. New deliveries of one Boeing and one Airbus will also be deferred, ABC reported.

The Qantas Group is pleased to announce the successful completion of an approximately $1,360 million fully underwritten placement (Placement) of approximately 372.7 million new shares (Placement Shares) to institutional investors at a price of $3.65 per Placement Share (the Placement Price).

As previously announced, proceeds from the equity raising will be used to accelerate the Group's recovery, strengthen its balance sheet and position it to capitalise on opportunities aligned with its strategy.

The carrier's plan also includes a host of cost-cutting measures which target making AUD15 billion (USD10.3 billion) in savings over the next three years.

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