Alan Joyce

In response to a $215 million loss in profits before tax, Qantas has announced operational changes that will see up to 500 job losses and withdrawal from unprofitable routes. 

In a half yearly report released today the carrier said the underlying profit before tax loss of up to $215 million for the six months ending 31 December 2011 compared to the same period last year, has urged the carrier to make adjustments to its operations to build Qantas’ future.

Among the first adjustments would be its withdrawal from Singapore to Mumbai and Auckland to Los Angeles routes.

Effective 6 May 2012, the carrier said the withdrawal would help the carrier adjust to the changing market conditions, higher fuel costs and European debt crisis.  

Aircraft changes will also be made on international and domestic routes including a switch from a Boeing 747 to an Airbus A330 on flights between Sydney and Bangkok and Sydney to Perth while additional A330s will be places on flights between Melbourne and Perth.

The carrier said it would increase capacity between Los Angeles to New York and Sydney to Tokyo with the A330 being replaced with a Boeing 747.

Meanwhile on a job front, chief executive Alan Joyce announced during a press conference that up to 500 positions would be affected by changes.

He stressed that while job cuts are being made “not one” position would be going offshore.

“The jobs that are going have become structurally redundant,” he said.

“Our job is to minimize compulsory redundancies, so we will be considering a range of options including; voluntary redundancy or redeployment; using annual and long service leave where appropriate; or leave without pay to give people experience in other areas of the industry, including other airlines.”

The job losses will come from engineering, airport ground operations and catering changes.

Mr Joyce said the Group’s airport rostering team and workforce planning will be consolidated from dispersed individual airports to Sydney while the Group’s QCatering business in Adelaide Airport will be demolished once in the lease expires in 12 months.

“We have reviewed the business case and decided against a costly investment,” he explained.

“We will not consult with our employees on future options for catering in Adelaide.”

The carrier is also considering potential sale opportunities in Cairns and riverside catering center in Sydney.