Australian airline Qantas said today is to cut 90 senior management positions and introduce a pay freeze in a bid to reduce costs.
Dublin-born chief executive Alan Joyce said the aviation sector faced considerable commercial challenges and that it was necessary to respond decisively in order to safeguard the airline's future.
Last year the airline cut 1,500 jobs and in December it called off talks with British Airways over a possible €6.4 billion merger.
In February it announced that the downturn in international travel and volatile currency and oil prices had sent its first half profits down 68 per cent.
"The ability to make hard changes earlier than others distinguishes Qantas from its competitors. We confront challenges when they need to be confronted. Doing so has helped the Qantas Group survive and prosper," said Mr Joyce.
"These changes will mean fewer overheads and reduce the number of layers between those leading the business and those working with our customers, our aircraft and business partners.
World airlines are set to lose €4.7 billion in 2009 as a result of the global recession, the International Air Transport Association (IATA) said yesterday.
International passenger demand fell 5.6 per cent in January compared to the same month a year ago, and cargo volumes fell 23.2 per cent year-on-year, the eighth consecutive month of contraction for cross-border freight.
Additional reporting: Reuters
