Qantas is still very much on war footing as it continues to navigate the impacts of COVID-19. One thing you could not accuse Alan Joyce of is procrastinating.
Alan Joyce has increased pressure on state premiers over border closures urging 20,000 of its stood-down staff and the airlines 10,000 suppliers to sign a petition calling on the states and territories to re-open. Qantas has also written directly to state and federal MPs to make the case for a common, medically-based framework for reopening. Qantas has been hammered by state border closures which have virtually halted interstate flights and left thousands of its stood down workers in limbo.
Qantas has also raised more cash to strengthen its liquidity via a ten-year $500m unsecured bond issue which will be used to pay $400m in bonds due to expire next June. The new bond is at 5.25 per cent, significantly lower than the 7.5 per cent funding it replaced.
Qantas has also announced that it is reviewing its lease arrangements for its Sydney headquarters at Mascot which cost $40 million in a year to further reduce costs. Qantas is committed to cutting costs by $15 billion over the next 3 years. As Qantas will be a lot smaller for a while it will not need as much space. Qantas could bring some of its facilities together. Jetstar’ head office is currently in Collingwood Melbourne.
In another cost-cutting measure, Qantas has announced plans to outsource its ground handling operations which will cost 2500 jobs of baggage handlers, aircraft cleaners and bus drivers at 11 airports including Sydney, Melbourne and Brisbane.
Qantas will look at scheduling more scenic flights over Australia after a seven-hour service from Sydney-to-Sydney sold out within ten minutes. The non-stop flight over Uluru, the Great Barrier Reef and Sydney Harbour was devised by Qantas to get around state border closures and the ban on international travel.
Source: Qantas cuts 2500 more jobs as ground handling outsourced by R Ironside The Australian Aug 25th, Qantas raises another $500 million to boost reserves, cover debt by R Ironside The Australian Sept 1st, Qantas puts pressure on states over border closers by O Caisley Sept 10th, Qantas plans non-stop scenic flight to soar over borders by R Ironside The Australian Sept 17th.