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QANTAS Group Stands Down 2,500 Crew in Response to Domestic Border Closures

Around 2,500 frontline Qantas and Jetstar employees will be stood down for an estimated two months in response to ongoing COVID outbreaks.

The stand down is a temporary measure to deal with a significant drop in flying caused by COVID restrictions in Greater Sydney, in particular, and the knock-on border closures in all other states and territories. No permanent job losses are expected.

Today’s 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-August.

Income support in the form of government disaster payments will be key to helping eligible employees get through this challenging period and the Qantas Group welcomes the targeted Federal Government support offered for those stood down outside of declared hotspots and to retain domestic aviation capability.

Qantas Group CEO Alan Joyce said the difficult decision to trigger stand downs reflected the reality confronting many businesses operating in New South Wales.

Qantas Group Targets Domestic Growth with Alliance Airlines Capacity Deal

A new deal with Alliance Airlines will help the Qantas Group meet an expected surge in local tourism demand once the country moves beyond sudden COVID-related border closures. Alliance will provide the QantasLink network with flexible capacity using its recently acquired Embraer E190 aircraft – a 94 seat jet with a five hour range that is well suited to linking regional centres with smaller capital cities.

Initial routes that Alliance will fly are expected to include Adelaide–Alice Springs, Darwin–Alice Springs and Darwin–Adelaide. Passengers can expect an increase in frequency made possible by the size, range and economics of the E190 compared to the Boeing 737’s that are currently used on these routes; the 737’s will be redeployed elsewhere in Australia as part an ongoing ‘right aircraft, right route’ approach to the Group’s network.

Qantas has signed a three year deal with Alliance to access three E190’s based in Darwin and Adelaide. The timing will depend on the rate of recovery in travel demand but is currently expected to start in June 2021, once the vast majority of the Qantas Domestic flying has returned to pre-COVID levels.

The agreement also provides flexibility to access an additional 11 (for a total of 14) E190 regional jets, but also to switch off some (or all) of this capacity, depending on market conditions.

CEO of QantasLink, John Gissing, said the deal reflected the kind of flexibility needed to respond to opportunities without committing any capital.

The E190 offers 10 seats in Business Class and 84 seats in Economy, with a range of about 4,500 kilometres.

Qantas owns just under 20 per cent of Alliance Airlines.

Layoffs in Corporate Australia & New Zealand as Crisis Deepens

(Reuters) – The coronavirus outbreak has virtually shut down corporate Australia and New Zealand, forcing companies to throw out their strategic plans and resulting in thousands of layoffs or staff suspensions.

Listed companies in both the countries have already laid off or began considering laying off more than 100,000 people, temporarily or permanently, highlighting the toll on livelihoods as virtual shutdowns take hold.

Ultimately, economists forecast the crisis will more than double unemployment to more than 11%, the highest in three decades.

AIRLINES

* Qantas Airways to place 20,000 workers on leave until at least the end of May.

* Virgin Australia to stand down 8,000 employees until the end of May.

* Air New Zealand to lay off nearly a third of its employees, about 3,500, in the coming months, and said that was a “conservative” assumption.

CASINOS

* Star Entertainment Group says 90% of its workforce, or 9,000 people, will be placed on leave due to mandated casino closures.

* Crown Resorts Ltd stood down about 95% or more than 11,500 of its employees on a full or temporary basis as gaming and other non-essential services at its resorts in Melbourne and Perth were suspended.

* SkyCity Entertainment Group has laid off or furloughed at least 1,100 of its staff across Australia and New Zealand.

RETAIL

* Department store operator Myer Holdings will temporarily lay off 10,000 of its staff without pay.

* Kathmandu Holdings Ltd, the outdoor apparel retailer that owns Rip Curl, said most of its global stores were closed and almost all its staff in Australia will be stood down for four weeks without pay. It has around 4,000 employees globally.

* Home ware retailer Smiths City Group Ltd stands down almost all of its 465 employees on 80% of their salary.

* Retail Food Group will stand down or reduce the working hours of the majority of its 500 employees.

* Premier Investments, owner of Smiggle, Just Jeans and chains, is standing down 9,000 employees, most without pay

* Jeweller Michael Hill International is putting staff on leave in Australia, New Zealand and Canada. The company employs about 2,500.

* Fashion retailer Mosaic Brands is standing down 6,800 due to store closures.

* Footwear retailer Accent Group stands down all its retail employees and most support staff for four weeks without pay. The company reportedly employs 5,700.

HOSPITALITY

* Pub and hotel operator Redcape Hotel Group will cut most permanent staff. It employs 800.

* ALH Group, the pubs and hotels group majority-owned by Woolworths, will stand down about 8,000 staff.

TRAVEL AGENTS

* Flight Centre is cutting or putting on leave a third of its 20,000 staff.

* Helloworld Travel lays off 275 people and temporarily stands two-thirds of its 1,800 workforce until the end of May.

HEALTH AND EXERCISE

* Viva Leisure lays off more than 90% of its 2,200 workforce.

* Dental group Abano Healthcare will stand down majority of its 2,300 employees at its operations in Australia and New Zealand.

HIRING:

On the other hand, some companies are hiring under the new circumstances.

* Australia’s biggest supermarket chain Woolworths to hire 20,000 in the next month. Some of the new hires will be those re-deployed from its the pubs and hotels business, ALH Group. Woolworths also plans to offer short-term roles to 5,000 Qantas employees put on leave.

* Coles has added 7,000 people to its ranks, and said it plans to hire another 5,000 to meet increasing demand at its supermarkets and liquor stores.

* Australia’s biggest telecom company Telstra will freeze a 6,000-employee cull and hire 1,000 due to growing volumes at call centres.

* BHP Group, the world’s biggest miner, says it will hire 1,500 temporary workers, some to be offered permanent roles after six months.

(Reporting by Nikhil Kurian Nainan and Anushka Trivedi in Bengaluru; Editing by Byron Kaye, Shounak Dasgupta and Sherry Jacob-Phillips)

Ferrari Extends Italian Plant Closures to April 14

MILAN (Reuters) – Luxury carmaker Ferrari <RACE> said on Friday it would extend the shutdown of its two Italian plants and reopen on April 14, provided it had supplies, and update 2020 forecasts in May when it releases its first-quarter earnings.

Ferrari this month closed factories in Maranello and Modena, in the northern Italian region of Emilia-Romagna, for two weeks until March 27 in a response to the coronavirus outbreak and a shortage of parts.

Investment firm Exor <EXXRF>, which controls Ferrari, on Wednesday said that current plant closures at Ferrari as well as at other controlled companies Fiat Chrysler <FCAU> and CNH Industrial <CNHI>, though temporary, might continue.

Ferrari – which cited “the huge uncertainty and lack of predictability that the COVID-19 has created” – said it would continue to cover all days of absence for those employees who could not work remotely.

The company added it would give further financial guidance during a conference call on its first-quarter earnings, scheduled for May 4.

In February, Ferrari said it planned its adjusted core profit to increase to between 1.38-1.43 billion euros this year, compared to a previous guidance of over 1.3 billion euros.

Ferrari said on Friday it remained confident that it would “continue to create value for all stakeholders beyond the near-term uncertainties”.

(Reporting by Giulio Piovaccari; Editing by Nick Macfie)

LATAM to Reduce Operations 70% and Offer Reschedule Flexibility

  • 70% corresponds to a 90% reduction in international flights and 40% in domestic operations. All customers with affected international and national flights from today can reschedule their journeys until December 31, 2020, at no additional cost

Following new border closures of various countries and the subsequent drop in demand, LATAM Airlines Group S.A. and its subsidiaries will reduce their capacity by 70%, equivalent to a 90% decrease in international operations and 40% in national flights.

“We made this difficult decision following border closures that have made operating to a large part of our network impossible. If these unprecedented travel restrictions are extended over the next few days, we cannot rule out further reductions to our operation,” said Roberto Alvo, Chief Commercial Officer and CEO-elect of LATAM Airlines Group.

All passengers with affected national or international flights from today (March 16, 2020), will be able to reschedule their flights until December 31, 2020, at no additional cost.

LATAM’s customer service channels are currently receiving high numbers of enquiries, impeding the ability to attend customers. To be able to focus on passengers with the most pressing requirements, LATAM requests that customers do not call more than 72 hours prior to their flight.