SYDNEY: Struggling Australian carrier Qantas yesterday said it was committed to slashing costs by Aus$2bn ($1.8bn) but refused to confirm or deny a report that it will axe 5,000 jobs.
The airline has been battling record fuel costs and fierce competition from subsidised rivals and in December said 1,000 jobs would go while warning it faced a half-year loss of up to Aus$300m.
Its interim result is due tomorrow and the Sydney Daily Telegraph, citing a Qantas source, said the job losses would be much worse as the airline restructures its finances to convince the government it deserves a debt guarantee. As well as sacking 5,000 staff, the newspaper said Qantas may sell some of its terminals, while The Australian reported it would accelerate the retirement of older planes and defer new orders.
The airline refused to go into details. “There is fresh speculation about what things we will or won’t announce on Thursday as part of our half-year results. We are not in a position to comment on that speculation,” the flag carrier said in a statement.AFP
