SYDNEY – Australian airline Qantas announced today that it will furlough 2,500 workers as coronavirus outbreaks and regional lockdowns pummel demand for flights.
Pilots, cabin crew and airport workers from the carrier and its low-cost affiliate Jetstar will be sent home without pay from mid-August for an estimated two months, it said.
“This is clearly the last thing we want to do, but we’re now faced with an extended period of reduced flying, and that means no work for a number of our people,” said CEO Alan Joyce in a statement.
Qantas said it has gone from operating almost 100% of its usual domestic flying capacity in May to less than 40% last month due to Covid-19 restrictions.
Most of the affected staff are based in New South Wales, a state that is largely cut off from the rest of the country and world by travel curbs.
A lockdown in Australia’s largest city Sydney is now in its sixth week and likely to last at least another month.
Qantas and Jetstar have already stood down thousands of international air crew since early last year, with the nation’s borders remaining closed to most overseas travellers.
The country’s third-biggest city Brisbane is currently under stay-home orders, while other states have only recently emerged from lockdowns.
Qantas said staff will be paid for two weeks before the change takes effect.
“Based on current case numbers, it’s reasonable to assume that Sydney’s borders will be closed for at least another two months,” said Joyce.
“We know that it will take a few weeks once the outbreak is under control before other states open to New South Wales and normal travel can resume.”
Qantas, which previously said it saw an A$11 billion (RM34.2 billion) plunge in revenue in 2020, embarked on a cost-cutting blitz last year that included grounding planes and restructuring. – AFP, August 3, 2021
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