Qantas and Jetstar will suspend scheduled international flights from late March following the latest government advice.
Two-thirds of Qantas Group’s employees will be temporarily stood down “to preserve as many jobs as possible long-term” due to a huge drop in travel demand triggered by government escalating its level of travel advice to “do not travel”.
Qantas and Jetstar will suspend their scheduled international flights from late March until at least the end of May.
Earlier this week the group announced about 60% of domestic flights could be cut.
Essential domestic, regional and freight connections “will be maintained as much as possible”, the airline said.
More than 150 aircraft will be temporarily grounded, including all of Qantas’ A380s, 747s and B787-9s and Jetstar’s B787-8s.
Qantas and Jetstar will stand down the majority of their 30,000 employees until the end of May.
During this time, staff will be able to draw down on annual and long service leave, as well as the option for leave at half pay and early access to long service leave.
Senior Group Management Executives and the Board have increased their salary reductions from 30% to 100% until at least the end of this financial year.
Annual management bonuses have also been cancelled.
“We’re in a strong financial position right now, but our wages bill is more than $4 billion a year,” Qantas Group CEO Alan Joyce said.
“With the huge drop in revenue we’re facing, we have to make difficult decisions to guarantee the future of the national carrier.”
Jetstar Asia (Singapore) will suspend all flights from 23 March to at least 15 April, Jetstar Japan has suspended international flights and cut domestic flying and Jetstar Pacific (Vietnam) has suspended international flights and will significantly cut domestic flying.
More in today’s edition of Travel Daily.