|Qantas pilots lament chief Joyce’s ‘demolition job’
Massive losses and thousands of jobs cuts announced by Australian airline Qantas, which has a junk grade credit rating, came under fire from politicians and labor groups. (Pictured, Qantas Chief Executive Alan Joyce)
The opposition Labor party called the grim prognosis “the worst day for aviation people since the collapse of Ansett,’’ referring to the former Australian airline that went under in 2001.
Unions said workers were being punished for poor management.
“Qantas management has today outlined a demolition job, but failed to follow through with a strategy for how it will grow the business and serve the national interest,'' said Nathan Safe, president of the influential Australian and International Pilots Association.
The carrier will cut capital expenditure of A$1 billion across the next two financial years.
Chief executive Alan Joyce said tough choices are “necessary to overcome the challenges.’’
Following an interim profit warning in December, Moody's and Standard & Poor’s both downgraded Qantas' credit rating to “junk'' status.
Qantas shares were more than 7 percent lower at A$1.17 in early afternoon trade in Australia.—AFP