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Qantas considers 300 cuts in Avalon

Reported by Justin Loiseau
Tuesday, September 17, 2013
Topics in this article:
Asx,Qantas Airways
World's kookiest billionairesBillionaires and their eccentric and outlandish publicity stunts.

Qantas (ASX: QAN) may be calling it quits in Avalon. In an attempt to streamline operations and cut costs, Qantas is reviewing the remaining 300 engineers, maintenance workers, and contractors at its Victoria facility.

The review will most likely lead to layoffs – and it makes sense. Simply put, the facility’s out of work. Domestic CEO Lyell Strambi said in a statement, “In fact, there will be no scheduled maintenance for the equivalent of five months each year for the next four years, starting in March 2014.”

The most recent news has gone political, according to the Sunday Morning Herald, with State Labor opposition leader Daniel Andrews blaming Premier Denis Napthine for not fighting hard enough for local jobs. For its part, the Australian Workers’ Union noted its surprise and called Qantas’ review “another move towards offshoring.” While Avalon isn’t likely to see expansion going forward, Qantas has slotted $30 million towards upgrades at its Brisbane heavy maintenance facility, the undisputed “winner” in Qantas’ consolidation.

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The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

26/10/2014 08:10Sydney, Australia. 26 October,2014
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