Australia's biggest airline, Qantas, is to cut between 1,500 and 2,000 jobs.
The figure amounts to about 6 per cent of its staff. The company blames the impact of the September 11th terrorist attacks for the decision.
Qantas chief Executive Mr Geoff Dixon said the airline would also pare back its international flight schedule including ending all flights to New York due to falling demand.
The airline has cut its international flights by about 11 per cent since September 11th.
The carrier also said it will retire its fleet of five Boeing 747-200 aircraft beginning in April. The aircraft had been scheduled to be phased out from late 2003.
Qantas said it will make "extensive internal changes" by moving a significant number of staff from its international operations to its domestic operations.
Unions accused the airline of announcing the cuts in an attempt to force workers to accept a proposed freeze in their wages.
The airline is seeking the wage freeze for 12 to 18 months as well as the changes to domestic operations. Unions plan a two-day strike next week to protest plans to abolish all pay rises.
AP