The Qantas Group has announced a three-year plan to accelerate its recovery from the COVID crisis and create a stronger platform for future profitability, long-term shareholder value, and to preserve as many jobs as possible.

The airways said it is laying off at least 20 percent of its workforce as per the plan and the Board seeks to raise up to $1.9 billion of equity as part of measures in response to the COVID-19 crisis.  

Key actions of the plan include reducing the group’s pre-crisis workforce by at least 6,000 roles across all parts of the business. Among other plans include grounding up to 100 aircraft for up to 12 months (some for longer), including most of the international fleet. The majority are expected to ultimately go back into service but some leased aircraft may be returned as they fall due.

“We have to position ourselves for several years where revenue will be much lower. And that means becoming a smaller airline in the short term,’’ says Qantas Group CEO Alan Joyce.

“Adapting to this new reality means some very painful decisions. The job losses we’re announcing today are confronting. So is the fact thousands more of our people on stand-down will face a long interruption to their airline careers until this work returns,’’ he adds.

The crisis has left them no choice but they committed to providing those affected with as much support as they can, Alan adds. That includes preserving as many jobs as possible through stand-downs, offering voluntary rather than compulsory redundancies where possible, and providing large severance payouts for long-serving employees in particular.

Image source: ZD Net