Qantas Group by mid-2016 will slash 5,000 jobs, defer or sell 50 aircraft and reduce capital expenditures by $1 billion Australian dollars (about $899 million).
The moves are part of a $1.8 billion cost-cutting initiative.
"Qantas will take action to permanently reduce costs in all parts of the Qantas Group through to fiscal year 2017, including fleet and network changes, productivity improvements, consolidation of business activities, new technology and procurement savings," according to the airline.
The airline attributed its woes to, among other factors, a challenging competitive environment in which competitors, bolstered by foreign capital, have "increased capacity to Australia by 46% since 2009, more than double the world average," according to CEO Alan Joyce.
Qantas on Thursday reported what he called an "unacceptable and unsustainable" underlying loss before tax of $252 million Australian dollars (about $224 million) for the six months ending Dec. 31, 2013.Source: Business Travel News