Qantas cuts deep, but well placed to weather COVID-19

Like almost every airline around the globe, Qantas has been blindsided by the freight train that is the Covid-19 outbreak.

The abruptness of the airline's change in outlook has been dramatic. A few months ago Qantas was comfortably on track and focusing on new aircraft orders; on 20-Feb-2020 its share price rose almost AUD1.00 to AUD6.67 following its 1H results announcement and its forward looking plans to combat the threat; by 19-Mar-2020 that price had slumped to AUD2.14.

Now the airline is announcing previously implausible measures as it cuts back its network, fleet and workforce.

The carrier has acted swiftly and has not been afraid to make drastic moves - a hallmark of the current management in everything from crisis management to labour relations.

International operations will be suspended completely, with domestic capacity cut by 60%. About 150 aircraft will be grounded, and two thirds of the carrier's 30,000 employees will be stood down.

Tough measures, but in the circumstances - entirely judicious.