Qantas set to axe 1000 jobs

Qantas is making changes in a bid to boost profitability, a move that will affect about 1000 jobs. Photo / Sarah Ivey

Qantas Airways will make dramatic changes to its international business to make it profitable in a process that will affect 1000 jobs.

Qantas says there will be an impact on workers from the retirement of older aircraft and network changes, while the company will look to minimise compulsory redundancies wherever possible.

Qantas chief executive Alan Joyce said the airline had to make fundamental changes now to ensure the international business was profitable.

He said Qantas International's cost base was about 20 per cent higher than its key competitors.

"To do nothing, or tinker around the edges, is not an option,'' Joyce said in a statement on Tuesday.

"We have established a five-year plan that has the objective, first, of returning Qantas International to profitability in the short term.''

At the end of the process, Qantas would participate in regional Asian opportunities and in the world, rather than being an Australian-based international airline, he said.

Qantas said it was aiming to be the best premium airline for Australia's global travellers, with the best incentives and benefits through its frequent flyer program.

Through a "gateway'' strategy, Qantas says it will better connect to global cities with alliance partners.

It will:

*Launch a direct flight to Santiago, replacing Buenos Aires as the entry point to South America.

*Restructure the joint services agreement with British Airways.

*Develop the joint agreement with American Airlines.

*Explore opportunities with Malaysia Airlines.

The Airline will invest in products and services, including:

*Having 12 A380s in service by the end of the year and upgrading 747s.

*Establishing premium lounges in Singapore, Hong Kong and Los Angeles.

*Increasing points earnings opportunities.

Qantas will aim to enhance its presence in Asia by:

*Creating a new premium airline based in Asia, with a new name, new aircraft and new look.

*Launching Jetstar Japan as a new low-cost carrier together with Japan Airlines and Mitsubishi.

Qantas will make changes to its fleet plan by:

*Buying 106 to 110 Airbus A320s to support growth.

*Deferring delivery of final six A380s by up to six years.

*Retiring four 747s.

- AAP