>[SYDNEY/CANBERRA] Qantas Airways Ltd, Australia's biggest airline, said it would make an announcement next week about the outcome of its operational review, following press reports it would sack 2,000 staff.
The carrier, under pressure from soaring fuel costs and strikes over a pay dispute with its engineers, would slash 5 per cent of its 36,000-strong workforce, as well as unprofitable routes into Asia and at home, the Telegraph newspaper said yesterday.
"The announcements are relating to the review of the operation of the entire Qantas Group, and we will be making that announcement publicly next week," a Qantas spokesman said.
Qantas shares were up 4.1 per cent in trade yesterday, outpacing a 0.8 per cent rise in the benchmark S&P/ASX 200 index. The shares are still down about 40 per cent this year, nearly double the drop in the benchmark index.
Flight crew, managers, engineers and ground staff would all face the sack after Qantas chief executive Geoff Dixon last month warned rocketing fuel prices had sparked the "greatest crisis in aviation history", prompting the review of operations.
Qantas, the world's 10th-largest airline by market value, reported net profit of A$617.6 million (S$813.9 million) for the six months ended December, doubling its first-half earnings on strong demand for air travel and trimmed fuel costs.
It said in May it still expected to achieve its target of 40 per cent profit growth in the current year.
Mr Dixon told staff the fuel price crisis exceeded the impact of the two Gulf wars, the September 11 airline attacks on the US in 2001, Asia's Sars crisis and past oil shocks. -- Reuters
