Qantas Airways Ltd is stagnating about 2,500 employees for approximately two months, with no pay, in an attempt to sustain the recent COVID-19 restrictions in Australia blistering domestic travel demand.
This core decision will lay a massive impact on the domestic pilots, cabin crew and airport workers, mostly in New South Wales, with no lay-offs expected from the unanticipated move, added the airline on Tuesday.
Qantas proclaimed the operating numbers that contributed to almost 100% of its pre-COVID domestic flying capacity in May has gone to less than 40% in July, about the imposed lockdowns to curb the spread of the Delta variant of the coronavirus. As per the latest reports, “Based on current case numbers it is reasonable to assume that Sydney borders will be closed for at least another two months,” added Qantas Chief Executive Alan Joyce.
The affected group of domestic employees, who will join by the 6,000 colleagues in the international allocation will receive government monetary payments of A$750 ($552.15) per week.
With a whopping goal of assimilating 100% of pre-COVID capacity by the beginning of Christmas, Qantas will not act dormant to any of its domestic planes to escalate quickly as demand returns.
The international flights haven’t filled on since March 2020. In the due course, the airline has put up many international flights on sale from late December, but Joyce said the status of those plans would turn on as per Australia’s vaccination rate.
Qantas shares were low to 1.4% in early afternoon trade, with an addition to the underperformance of 0.3% drop in the broader stock market.