Qantas Axes 1,400 Jobs as Impact of SARS Virus and Iraq War Bite

April 10, 2003 - 0:0
SYDNEY -- Qantas will axe 1,400 of its 35,000-strong workforce by June because of the combined impact of the deadly pneumonia virus and war in Iraq, the Australian flag carrier warned Wednesday.

The redundancies are in addition to plans already announced by the airline to temporarily cut staff by the equivalent of 3,000 positions through enforced early leave and a staff freeze.

Qantas Airways Ltd. announced in late March it would slash international operations by about 20 percent between April and July because of the global downturn caused by fears of terrorism, war in Iraq and the worsening severe acute respiratory syndrome (SARS) outbreak.

The SARS virus, which has so far claimed 104 lives and infected almost 2,900 people worldwide, is proving to be a greater threat to the airline industry in the Asia-Pacific region than war, many analysts now believe.

Other regional carriers, including Cathay Pacific and Singapore Airlines, have also announced deep cuts because of the business downturn.

Qantas Chief Executive Geoff Dixon said Wednesday that the redundancies were part of a continuing restructuring program in response to changes in the aviation market.

The restructuring will involve 1,000 redundancies and the elimination of another 400 permanent positions through attrition. A further 300 permanent positions are being converted to part-time employment. "We regret the need for this action," Dixon said in a statement to the Australian Stock Exchange. "However, it is vital we move quickly to protect our position in a very difficult and competitive industry." Dixon said the global aviation industry had shed more than 400,000 jobs between the September 11 terrorist attacks and the beginning of the war against Iraq. (AFP)