Qantas Group announced (25-Jun-2020) its cost reduction and rightsizing plan targets benefits of AUD15 billion (USD10.3 billion) over three years, in line with reduced aeronautical activities, including fuel consumption savings and delivering AUD1 billion (USD685.6 million) p/a in ongoing costs savings from FY2023 through productivity improvements across the Group. Key actions of the plan include:
- Reducing the Group's pre-crisis workforce by at least 6000 across all parts of the business;
- Continue the stand down of at least 15,000 employees, particularly those associated with international operations;
- Retiring Qantas' six remaining Boeing 747s immediately, six months ahead of schedule;
- Ground up to 100 aircraft for 12 months or more, including most of its international fleet. The majority are expected to ultimately go back in to service, however some leased aircraft may be returned as they fall due;
- A321neo and Boeing 787-9 fleet deliveries deferred.
The cost of implementing the plan is estimated at AUD1 billion, with most realised during FY2021. [more - original PR]