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Qantas Plans To Outsource Ground Handling; To Cut Up To 2,500 Jobs; Stock Up

(RTTNews) - Qantas Group (QAN.AX, QUBSF.PK) Tuesday said it plans to outsource its ground handling operations at the 10 Australian airports as part of its COVID recovery plan. The decision would impact up to 2000 employees, including some management roles.

Further, the airline is proposing to outsource its bus services for customers and employees in and around Sydney Airport, which could impact 50 employees.

Jetstar Airways has also decided to outsource ground handling at the six remaining Australian airports, impacting 370 jobs, subject to union consultation.

The company will conduct reviews on the proposals.

At present, Qantas and Jetstar directly employ people in various ground operations roles. These include baggage handling and aircraft cleaning at 11 large airports around the country. They also use specialist ground handlers at airports at 55 other airports they fly to across Australia.

Qantas said it has informed its people and relevant unions of initiatives affecting its ground handling operations at airports across Australia.

Meanwhile, customer facing team members at airports are not impacted or in scope for the reviews.

The company has already announced job losses of at least 6,000.

The latest announcement follows a $2.7 billion statutory loss for fiscal 2020 and a $4 billion drop in revenue in the second half due to the COVID-19 crisis and associated border restrictions.

Going ahead, the company projects further significant losses in fiscal 2021 and an at least $10 billion drop in revenue.

In Australia, Qantas shares traded at A$3.84, up 2.95 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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