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Qantas flags big cuts

Wednesday, 16 July 20083 min read

SYDNEY – Qantas chief executive Geoff Dixon has told staff the airline has been “changed forever” by record oil prices staying above $US140 a barrel.

According to a story in the Business Spectator, Qantas will shed 2000 jobs next week in a bid to stave off the pressures of record oil prices.

The reports said Dixon flagged the company’s third review within a year in a message sent to the carrier’s staff.

A memo said the review would examine how the carrier will operate in an environment of higher oil prices.

Qantas has also been involved in a pay dispute with its engineers.

The engineers are calling for a five percent pay increase, but Dixon has repeatedly stated that the surging price of oil has limited the airline to offering a three per cent increase.