Australian based airline carrier Qantas announced on November 8, 2012, that it will be slashing around 400 maintenance jobs, as a part of a restructure aimed at cutting costs and shifting focus to Asia. Qantas also said that the cuts would involve laying off 150 staff and 250 contractors, as the ‘Flying Kangaroo’ consolidates its maintenance operations. The carrier is trying to achieve some savings amid heavy competition.
Other reasons for the cost cut include rising fuel costs and a strong Australian Dollar. The chief of the domestic arm of Qantas, Lyell Strambi said that the modernization of the airline’s fleet had significantly reduced the need for engineering staff. Strambi went on to say that with the new generation of aircraft, maintenance costs have reduced as well as the airplanes do not need to be serviced very often.