News: QAN Qantas Proposes To Outsource Ground Handling Operations At 10 Australian Airports

Aug 25 (Reuters) - Qantas Airways Ltd (QAN) :

• PROPOSING TO OUTSOURCE GROUND HANDLING OPERATIONS AT 10 AUSTRALIAN AIRPORTS
• IF DECISION TAKEN TO OUTSOURCE WORK, IT COULD IMPACT UP TO 2000 EMPLOYEES, INCLUDING SOME MANAGEMENT ROLES
• JETSTAR TO OUTSOURCE GROUND HANDLING AT 6 REMAINING AUSTRALIAN AIRPORTS, IMPACTING 370 JOBS, SUBJECT TO UNION CONSULTATION
• PLANNED CAPITAL INVESTMENT ALSO BEING SIGNIFICANTLY REDUCED, INCLUDING DEFERRAL OF AIRCRAFT ORDERS
• OUTSOURCING WORK TO SPECIALIST GROUND HANDLERS WOULD SAVE ESTIMATED $100 MILLION IN OPERATING COSTS EACH YEAR
• RIGHT NOW, DOMESTIC CAPACITY IS AT 20% OF PRE-COVID LEVELS & INTERNATIONAL TRAVEL EXPECTED TO TAKE YEARS TO RECOVER
• REVIEW WILL BE UNDERTAKEN OVER NEXT FEW MONTHS.
• PROPOSING TO OUTSOURCE BUS SERVICES FOR CUSTOMERS/EMPLOYEES IN AND AROUND SYDNEY AIRPORT
• PROPOSING TO OUTSOURCE BUS SERVICES UNDER SEPARATE REVIEW AND COULD IMPACT 50 EMPLOYEES.
• FURTHER SIGNIFICANT LOSSES PROJECTED IN FY21 & AT LEAST $10 BILLION DROP IN REVENUE DUE TO ONGOING IMPACT OF COVID

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