Financial problems for Australian airline

Qantas, Australia's biggest airline, announced Thursday it will cut between 1,500 and 2,000 jobs - about six percent of its staff - blaming the impact of the September 11 terrorist attacks for the decision.

Unions accused the airline of announcing the cuts in an attempt to force workers to accept a proposed freeze in their wages.
Qantas chief Executive Geoff Dixon said the airline also would pare back its international flight schedule, including ending all flights to New York, because of sliding demand since the attacks on New York and Washington.

The airline has cut its international flights by about 11 percent since September 11.
The Sydney-based carrier also said it will retire its fleet of five Boeing 747-200 aircraft beginning in April. The aircraft had been scheduled to be phased out from late 2003.

Qantas said it will also make "extensive internal changes" by moving a significant number of staff from its international operation to its domestic operations.
In a statement to the Australian Stock Exchange, Qantas said all flights to New York will be cut from November 25, and flights would be reduced to Rome, Johannesburg, Bangkok, Manila and Buenos Aires.
Dixon said the moves were designed to "bolster decisions made last month to respond to the international aviation downturn resulting from the terrorist attack, to lower its cost base and to put it in a strong position to take advantage of the inevitable recovery of the international aviation market."
Qantas is already seeking a staff wage freeze for 12 to 18 months and substantial changes to domestic operations.
Unions have threatened strike action over the proposed wage freeze.
Australian Manufacturing Workers Union national secretary Doug Cameron told reporters in Sydney he was cynical about the timing of the job cut announcement which came as unions were fighting against planned wage cuts.
Unions plan a two-day strike next week to protest plans by Qantas to ax all pay rises for the next 18 months.
Bureau Report