alan joyce, page-39

Source SBS news, i dont think pilots or engineers will consider industrial action.

TIMELINE: The history of Qantas
EXPERT REACTION: Qantas to slash 5,000 jobs in a bid to save $2 billion

Struggling Australian carrier Qantas on Thursday said it will axe 5,000 jobs in a major restructure after posting a first-half net loss of $235 million.

The airline, battling record fuel costs and fierce competition from subsidised rivals, is working to slash costs by $2 billion over three years.

Part of the restructure will see 5,000 full-time positions lost from its 32,000-strong workforce.

The carrier also flagged "significant changes" to its fleet plans and network, and a reduction in capital expenditure of $1 billion across the next two financial years.

"We are facing some of the toughest conditions Qantas has ever seen," chief executive Alan Joyce said.

"Hard decisions will be necessary to overcome the challenges we face and build a stronger business."

Mr Joyce said the job cuts, most of which would occur within the first 18 months, were necessary to save the airline.

"There are many Australian companies that have failed because they were not prepared to make the hard decisions, Qantas is not one of them," he said.

Mr Joyce said the airline continued to see major opportunities for its subsidiary Jetstar in Asia, despite challenging conditions and calls for it to exit the market.

However, Jetstar Asia would suspend its expansion in Singapore until conditions improved.

"Jetstar has been a pioneer Australian brand across Asia and we continue to see major opportunities for it in the world's fastest-growing aviation region," Mr Joyce said.

THREAT OF STRIKES
Transport Workers Union national secretary Tony Sheldon has called on the federal government to meet with the airline to find ways of avoiding the job cuts.

"But if (Treasurer) Joe Hockey's not prepared to do that, then it's industrial action that the workforce should be considering," Mr Sheldon told reporters in Sydney.

"In this country, if the government won't stand up for jobs and for the Australian icon, then we will."

He said it was "laughable" to see the company's executives saying they won't take more wage increases.

"This is the third time (they've said this) since 2010 and they've paid themselves an 82 per cent wage increase," he said.

He urged the government to drop its desire to get rid of the Qantas Sale Act, which limits foreign ownership of the airline.

"Do we want Qantas to be (like the Russian plane) Aeroflot with a Kangaroo on its tail?" he said.

"Do we want Qantas to turn around and not be the national icon anymore?"

The Australian and International Pilots Association described the job cuts as a Qantas "demolition job".

"The federal government should be twisting management's arm to be open and honest about where it is heading," AIPA president Nathan Safe said.

"Otherwise, it is like supporting a plan to bulldoze half a house before the blueprints to rebuild have been drawn."

The ASU, which represents staff including airport check-in, head office, administration and call centre workers, said it had not been told the specifics of the job losses.

ASU assistant national secretary Linda White also took issue with the decision to extending an executive wage freeze to all its employees.

"It's punishing the workers for the poor business decisions made by (CEO) Alan Joyce," Ms White said.

The Australian Manufacturing Workers Union president Andrew Dettmer doubts Qantas can guarantee its safety record if jobs are sent offshore.

"Alan Joyce and the Abbott government have once again shown their true colours - they don't care about workers, they don't care about Australian industry and they don't care about Qantas' safety," he said in a statement.

"This is a dire situation. We call on the government to stop blaming workers and their conditions and to stand up for people's jobs and Australian icons, not simply throw them away."

CALLS FOR JUDICIAL INQUIRY
Independent senator Nick Xenophon has called for a judicial inquiry into the company's financial mismanagement, particularly in relation to Jetstar, and called for Mr Joyce and the Qantas board to be sacked.

"The jobs that should have been lost are Alan Joyce and his board," he said.

But Mr Joyce said he was committed to Qantas and the board was 100 per cent behind the plan to turn the business around.

AUSTRALIAN MARKET 'DISTORTED'
Mr Joyce again hit out at rival Virgin, which counts three foreign airlines - Etihad, Singapore Airlines and Air New Zealand - among its owners.

"The Australian domestic market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign government-backed airlines yet retain access to Australian bilateral flying rights," he said.

"Late last year, these three foreign-airline shareholders invested more than $300 million in Virgin Australia.... that capital injection has supported continued domestic capacity growth by Virgin Australia despite its growing losses."

Qantas has been lobbying the federal government for non-cash support.

QANTAS SALE ACT
The government is drafting changes to the Qantas Sale Act, which could give the carrier room to move some operations offshore and attract more foreign investment.

It could also be given a government debt guarantee, which would reduce its borrowing costs.

The cuts triggered a feisty debate in federal parliament, as Labor said it might support a debt guarantee but ruled out backing changes to legislation to allow the airline to lift its foreign ownership above 49 per cent.

Noting it was a difficult day for Qantas workers, Prime Minister Tony Abbott was cool on a debt guarantee, telling parliament the airline was not a special case.

"Why should the government do for one what it is not prepared to do for all, or what is not necessarily available for all?" he said.

Virgin Australia boss John Borghetti said if the government gave Qantas a debt guarantee, he would seek a similar pledge "within 24 hours".

Mr Abbott strongly argued for enabling Qantas to secure more foreign capital and take the fight up to its competitors.

"We want to ensure that Qantas is not competing against its rivals with a ball and chain around its leg," he said.

Opposition Leader Bill Shorten said there was no excuse for the government not to step in.

"This is the worst day for aviation people since the collapse of Ansett," he said.

Opposition transport spokesman Anthony Albanese said changing the Qantas Sale Act was a distraction for government inaction.

He said if foreign investment were an issue, the airline would already be at its 49 per cent foreign ownership limit and not the current 39 per cent.

Changing the act would have other ramifications, including thousands of jobs going offshore, rural and regional routes being dropped and the likely split of Qantas' operations into separate domestic and international companies.