Qantas Airways, the Sydney-based carrier, decides to cut down the number of cabin crews as a first step to counter competition.?This?move is the?first buyout programme of the airways. The buyout programme is expected to be accepted by about 7,000 cabin crews from 350 carriers. However, the airways conveyed that it has no plans for mandatory layoffs. The Flight Attendants Association of Australia has assured that workers will get three weeks’ pay each year of service?for five years.
The buyout is likely to be accepted by a lot of workers. The programme is attractive to those on the verge of retiring or has thought of leaving in the near future.
The share value of the carrier fell has been very low following its performance. The international division growth has been very slow. The stock has been avoided by Macquarie Group, an advisory to banking and investment firms.??In the benchmark S&P/ASX 200 Index, the share value dropped by?3.4 per cent.
The airline has?already reduced its?growth plans for domestic and overseas routes this year?due to?natural disasters,?rising fuel costs, and?competition from Virgin Australia. According to?Bloomberg data, the jet fuel price has reached a price of?$127.3 a barrel in Singapore, is up by?22 per cent this year.
Seperately, however, the airlines long-haul pilots are planning to conduct a strike against the move, first strike in 45 years, to demand more job security and more pay. Fair Work Australia, the nation’s labour regulator, has already approved a?fresh workplace agreement between the airlines and its staff that?includes 3 per cent annual pay increases?in the next?three years.