Australia's largest airline Qantas (ASXQAN), reports 2,500 frontline employees stood down for an estimated two months in response to ongoing Covid-19 outbreaks.
This temporary measure aims to deal with Greater Sydney's decline in flying and knock-on border closures in all other states.
No job losses are expected yet the decision will directly impact domestic pilots, cabin crew and airport workers, mostly in New South Wales but also in other states given the nature of airline networks.
Employees will be given two weeks’ notice before the stand down takes effect, with pay continuing until mid-Aug. Government disaster payments will be eligible for employees going through this period.
CEO Alan Joyce said, “Qantas and Jetstar have gone from operating almost 100 per cent of their usual domestic flying in May to less than 40 per cent in July because of lockdowns in three states."
He continues, “hopefully, once other states open back up to South Australia and Victoria in the next week or so, and the current outbreak in Brisbane is brought under control, our domestic flying will come back to around 50 to 60 per cent of normal levels."
Shares in Qantas (ASX:QAN)
are trading 1.97 per cent lower at $4.47.