Qantas flights between Los Angeles and Auckland have been put on the chopping block following its latest profit results.
Australian airline Qantas will also be axing around 500 jobs after a review of its maintenance and catering businesses, early retirement of aircraft and the abandonment of two major international routes.
As part of Qantas’ cost-cutting plans it will be scrapping its Auckland to Los Angeles services from May 6 following an 83% slump in half-year profits.
The airline reported today an 83% fall in its first half net profit to $A42 million to December 31, 2011, down from $239 million in the same period last year.
It has also said it will slash capital expenditure by $200 million in the 2011/12 financial year and cut $500 million from spending in 2012/13.
Redundancies within the airline are also part of cost cutting aimed at countering economic volatility.
“Job reductions are expected as a result of aircraft retirements and operational changes within the airline,” said the airline.
There are no further plans to move operations offshore, said chief executive Alan Joyce.
“With aircraft retirements, there is simply not enough heavy maintenance work to justify the three facilities in Melbourne, Brisbane and Avalon,” he said.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- IRD wants to arrest top 20 student loan defaulters
- Government makes better offer to Quake Outcasts
- ‘Slater will pay the price for crossing the line’ – Colin Craig
- NBR Rich List 2015: Wealth creators shine brightly amid economic prosperity
- TPP and drugs: Douglas Pharmaceuticals lawyer sees fishhooks beyond patents