Qantas has confirmed 500 engineering job cuts as it announces the closure of its Tullamarine maintenance base in Melbourne saving A$100 million a year.
The Australian carrier announced the job losses in February as the airline faces fierce competition both at home and overseas.
The move has been confirmed after a three-month review of its engineering operations and Qantas chief executive Alan Joyce said eventually the airline would only need one of the three bases it previously had – probably in Brisbane.
This is due to the introduction of new technology and modern aircraft such as the Boeing 787 Dreamliner, which require less maintenance.
"Like the manufacturing industry, aviation maintenance is a labour- and capital-intensive sector. Our cost base in heavy maintenance is 30 per cent higher than that of our competitors – we must close this gap to secure Qantas’s future viability and success," said Mr Joyce.
