Flight International online news 09:00GMT: Australia’s Qantas Airways is to make “widespread changes” to its engineering operations in a bid to reduce costs, which could see thousands of jobs being cut.
The Oneworld alliance carrier says in a statement that a final decision on a restructuring of its engineering operations will be made within 3-4 months. It adds that it has “no realistic alternative than to make widespread changes to this part of the airline”.
“Maintenance repair operations for airlines are changing rapidly throughout the world, with a big push towards scale and lower-cost locations. The competition between MROs is becoming as competitive as the rest of the industry,” says Qantas CEO Geoff Dixon.
He says the airline is looking at two options: to either “restructure and relocate extensively within Australia”; or to “move significant parts of the business offshore”.
Dixon says he prefers the onshore option but “if we cannot, by working together with staff, make the business globally competitive we will have to pursue the alternative”.
The statement comes in response to reports that the airline is considering outsourcing heavy maintenance of its widebody aircraft. The Australian newspaper reported today that more than 3,000 of the carrier’s 6,900 engineering jobs in Australia could be eliminated.
Confirmation that the airline is planning major changes to its engineering operations comes just days after Air New Zealand announced that it intends to outsource heavy airframe and engine maintenance of its widebody fleet. It said around 600 jobs, or nearly 30% of its engineering workforce, could be cut.
Source: Flight International
