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Qantas to fire staff, freeze pay, cut capacity

2008-05-29 10:40
Australian flag carrier Qantas Airways is laying off staff, freezing executive pay and reducing capacity across its domestic and international networks by around five percent to offset higher costs from recent record fuel prices.

The airline will reduce the available seat kilometers flown by its fleet by the equivalent of around six aircraft by cancelling the delivery of one A321 aircraft ordered for its discount carrier Jetstar, ground three other aircraft and accelerate the retirement of some existing planes and adjust flying patterns of others.

The changes would require a reduction in staff numbers, initially through voluntary redundancies.

Pay for all of the company's senior executives will be frozen and a pay review scheduled for the remaining 1,000 executives in July will be deferred.
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