[damien b]

From news.com.au

QANTAS will slash about 2000 jobs next week as the national carrier seeks to offset cost pressures caused by the crippling fuel crisis.

The belt tightening also will include cutting loss-making flight routes from both domestic and international schedules.

The economic situation confronting the airline is so grim senior managers, flight crew, engineers and ground staff will be included on the hit list.

The cuts are expected to affect 5 per cent of the carrier's 36,000-strong worldwide workforce.

Qantas chief executive Geoff Dixon told workers this week rocketing fuel prices had changed forever the way Qantas did business.

Qantas last month pruned about 100 staff, cut services and agreed to retire four aged 747 jumbos.

Since then, the cost of refined jet kerosene has leapt even higher on the Singapore index, the benchmark for Asia-Pacific airlines, from $US171.45 a barrel to the July 3 record of $US181.43.

Jet fuel yesterday traded at $US175.25.

The fact fuel continues to hover above $US170 a barrel means the Qantas and Jetstar fuel bill will double to more than $2 billion this financial year.

Next week's cuts come as the airline and the International Airline Pilots Association agreed to a new pay deal that will hand long-haul pilots an annual 3 per cent pay rise, plus a 1 per cent increase in company superannuation contributions each year for the next five.

The pay deal is expected to put pressure on the airline's 1500 engineers, who have taken industrial action in support of a 5 per cent pay rise, which Qantas argues is outside its wages policy.

"The overall view of our industry is dire," Mr Dixon said.

No surprise really considering the current climate. I believe more jobs will follow soon, particularly workshop engineers, some training staff and associated management as they can be outsourced at cheaper rates.