Media: Qantas cuts jobs and levy

[NM]

from news.com.au

QANTAS will cut its fuel surcharges on international fares from next week, but has also announced the outsourcing of its IT operations, resulting in the loss of 340 jobs.

Despite the cut in the international fuel levy, chief executive Geoff Dixon said the airline would continue to monitor fuel prices before cutting the surcharges on domestic fares.

The carrier said the cost of fuel remains its biggest challenge but still upgraded earnings guidance for fiscal 2007 after announcing the loss of up to 340 jobs through the outsourcing of its IT operations.

The part that amazes me is that Qantas has 340 people currently doing this IT support role! That sounds pretty top heavy to me given that they have already outsources the desktop and network support.

And the fuel surcharges in international flights go down from Tuesday next week. No move on domestic fuel surcharges yet.

Qantas introduced fuel surcharges in May 2006, to offset a sharp rise in the price of crude oil and jet fuel.

The cuts to the surcharges, which will be effective on tickets bought on or after Tuesday, October 24, range from $5 to $15.

The surcharge on fares to the UK and Europe will fall $15 to $170 while the charge for trips to mainland USA, Canada, South America, South Africa and India will be $133, down $12.

Fares to Asia, the Pacific and Honolulu will attract a $105 surcharge, down $10, while those to New Zealand will carry a $60 levy, down $5.

 

[Kiwi Flyer]

Very pathetic falls compared with some of the other airlines. Eg LH down 10 euros per flight, SQ 15 USD per flight, etc.

 

[Mal]

Agree with the pathetic comment.

Qantas needs to do more. Wonder if the non-drop for domestic is related to a low amount of competition?

 

[JohnK]

Pathetic is one way of decribing it!

They are only partially rolling back the increase in August. Not good enough Qantas.