Nature Of Business
In Quantas has posted a $235 million half-year loss and announced that 5,000 full-time positions will go, in an attempt to return to profitability. Quantas chief executive Alan Joyce says most of the job cuts will come from management. The airline is also cutting back on check-in staff at its airports, enabled by the rise of self-service. Quantas is also planning to cut 50 planes and Jetstars Asia expansion has been cut and Brisbane Terminal is to be sold off. Currently Quantas only allows 49 per cent of foreign ownership of the company; this is to keep Quantas being ‘Australian Owned’ although they say this puts them at a disadvantage against state-owned competitors in raising capital. Rex Airlines
Australia’s biggest regional airline, Rex (Regional Express), is warning that the aviation sector will collapse without government support. They have issued a warning to the share market that its’ pre-tax earnings for the first half of this financial year will be 40 per cent lower than during the previous year. Rex’s chief operating officer, Garry Filmer called upon a statement that was made by Deputy Prime Minister and Minister for Regional Development, Warren Truss, as a pre-election promise; that the coalition would pledge to offer $3.5 million worth of rebates to airlines operating on routes with low passenger volumes. Rex has also lashed out at Treasurer Joe Hockey’s plan to provide support to Quantas Airways through a debt guarantee not available to other airlines, saying it will create an uneven playing field in the regional aviation sector. -Pat McGrath, 28 February 2014. www.abc.net.au/news
-Ben Sandilands, 2 March 2014. www.blogs.crikey.com.au
The price of Iron Ore, one of Australia’s key exports, has taken a massive downfall. BHP Billiton’s efforts to restraint costs in the face of weaker demand for key industrial commodities has shifted to cutting jobs at its Australian iron ore operations,...
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