Qantas CEO Alan Joyce stated (05-Dec-2013) the Group will make accelerated cost reductions across all areas of the business, to achieve total cost savings of AUD2 billion (USD1.8 billion) over three years. The existing Qantas transformation programme will be accelerated, with an expanded mandate to achieve these targets, including the following steps:
- Head count reduction of at least 1000 positions within 12 months, with an ongoing review;
- CEO and Board pay cut;
- Pay freeze and no FY2014 bonus for executives;
- Review of spending with top 100 suppliers;
- Network optimisation and improved fleet utilisation; and
- Further overhead reductions.
Mr Joyce said the Group had already made significant progress in becoming leaner and more efficient, noting “We have reduced the Group’s unit costs, excluding fuel, by a total of 19% since FY09, including by 5% in FY13” however “But these actions are not enough to deal with the current situation”. [more - original PR]