Qantas to earn bailout by cutting 5000 jobs

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From the Herald Sun:

EXCLUSIVE: QANTAS is gearing up to axe 5000 jobs and sell its terminal at Melbourne Airport to prove to the Abbott Government it can make the tough business decisions required to obtain federal assistance.

The airline may also take the razor to its budget offshoot Jetstar, slashing jobs and routes, as it lobbies the Government to provide it with a lifesaving debt guarantee.

Job cuts, previously forecast to be 2000, are now expected to be closer to 5000.

The Herald Sun has been told up to 1500 of those jobs could come from the executive and support divisions of the Qantas group.

What a strange world. Government assistance only if you cut more jobs. If restructuring is needed then so be it but the only jobs that should be cut in earning assistance from the tax-payer are those of the management and board.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.