After the Qantas Group yesterday announced job losses and service reductions, the three-year recovery plan is now looking at the overseas division running a skeleton service until the middle of next year.
Amid the huge changes announced for staff, Qantas chief Alan Joyce also revealed international travel could be almost nonexistent until mid-2021.
Qantas says its three-year strategy will see costs reduced by AU$15 billion with 100 aircraft grounded for up to 12 months (some for longer) and further job losses and extended stand-downs to manage the long period of reduced flying (especially internationally).
Flights
The strategy reveals domestic travel will operate at nearly half its capacity from next month and the overseas division will run a skeleton service until the middle of next year.
The airline’s chief executive Alan Joyce pleaded with the states to open borders to allow domestic tourism to contribute to the nation’s struggling economy.
There are some green shoots domestically. We’re planning to be back to 40 per cent of our pre-crisis domestic flying during July and hopefully more in the months that follow. But we’ll be living with COVID for some time and recent events show we can’t take a low infection rate for granted.
Alan Joyce, Qantas Group CEO
Mr Joyce cited the expectation from the IATA, that it will take more than three years for global travel to return to pre-coronavirus levels.
Australian and International Pilots’ Association president Mark Sedgwick said the delay for overseas travel was expected but still a significant blow.
“The fact that it might not occur in Qantas Group till mid-next year is certainly devastating news to pilots today,”
Mark Sedgwick, Australian and International Pilots’ Association president
Runway to recovery
In a heartfelt speech, Qantas Group CEO Alan Joyce said “we know that flying will return. Our people will be back in the skies. No aircraft will sit idle. And new ones will be arriving – including for more ultra-long-haul flights.”
“We’re confident because we’ve been in tough spots before. In 2013, Qantas faced an uphill battle. The turnaround that followed set us up for years of growth that was only derailed by COVID.”
“So our centenary year is, perhaps, a new beginning. The start of our ‘next century”
Alan Joyce, Qantas Group CEO
READ: Qantas Announces 6,000 Job Losses As Part Of Post-COVID Recovery Plan
READ: “We’ve Never Experienced Anything Like This Before. No One Has.” Alan Joyce’s Qantas Update
READ: Travel Hungry Aussies Snap Up Record Domestic Jetstar & Qantas Sale Fares