Qantas Airlines: Australia’s Favourite Lays Off Jobs by June, Deploys Double-decker Airbus A380 to Service Sydney-DFW Route
By Esther Tanquintic-Misa | May 8, 2014 11:50 AM EST
Recently voted as Australia's favourite airline, Qantas is set to squash off 2,200 jobs by June as part of a restructure plan as it announced it will deploy the double-decker Airbus A380 to service the Sydney-Dallas/Fort Worth route.
A Qantas Airlines Boeing 737 plane sits next to a Virgin Australia Boeing 737 plane at the Port Hedland airport in the Pilbara region of western Australia December 3, 2013. REUTERS
The jobs cuts will enable the airline company realise a targeted $2 billion in gross savings by fiscal 2017, Qantas said.
The jobs identified to go are staff across engineering, catering, freight, crew, airports, flight operations and management.
The job cuts are part of a massive plan to squash a total of 5,000 jobs by 2015. The remaining 1,800 is expected to be announced by end of June 2015, while the last 1,000 reductions will be made in the 2016 and 2017 financial years.
Apart from the job cuts, other cost-saving plans on the board include retiring the ageing 767s and some of its older 747s. The plan is expected to have a combined annual cost benefit of $155 million.
Qantas also plans to scale back investment, defer growth plans as well as sell some assets to get the much needed cash and reduce debt.
Effective Sept 29, Qantas will be servicing its Sydney-Dallas/Fort Worth route with a double-decker Airbus A380.
"The announcement of Qantas Airways A380 service to DFW is outstanding news for our airport and the Dallas/Fort Worth region, because it adds more seats to what has become a very popular and important route," Airport Chief Executive Sean Donohue said in a statement.
DFW is currently constructing a $2.8 million jet bridge at Terminal D's Gates 15 and 16 to accommodate the plane.
Qantas will fly the massive plane six flights a week, except on Tuesdays. Since the A380 can accommodate 484 passengers, Qantas is expected to increase seat capacity on the route by 10 per cent per week.
"Dallas has become an important gateway for Qantas customers since we started flying there in 2011. It is the hub for our partner American Airlines and offers more than 30 destinations beyond the west coast of the United States as well as parts of Canada and Mexico on their network," Qantas Group CEO Alan Joyce said.
"When you combine the A380 with the onward connections available from Dallas, this is a great example of the right aircraft on the right route."
The 484-seat, four-class A380 will replace Boeing 747-400ERs which have been operating the DFW services since May 2011.
Despite its business woes, Qantas has been voted Australia's best airline in TripAdvisor's 2014 Travellers' Choice Awards for Travel Favourites.
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