Qantas to cut 2000 workers as airline outsources grounds handling operations

Qantas will cut 2000 workers as the airline moves to outsource its ground handling operations at 10 airports across Australia.

In a statement Qantas said it notified the impacted workers this morning.

The proposed cuts brings the number of job losses for the airline to 8500 of its 29,000-pre-coronavirus workforce.

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"This is another tough day for Qantas, particularly for our ground handling teams and their families," Qantas Domestic and International CEO Andrew David said in a statement.

"We thank every one of them for their professionalism and contribution over the years supporting our customers and operations."

In August, Qantas forecast a restructure to its ground handling operations in light of the COVID-19 crisis and travel bans and border closures.

It commenced a review of external bids from specialist ground handlers and in-house bids from employees and their representatives.

The bids had to meet Qantas requirements of reducing costs, avoiding large spend on equipment and "better matching" Qantas' grounds handling services.

Qantas said the Transport Workers Union submitted a bid on behalf of employees, while it received bids from teams of some individual airports. It didn't specify names.

After granting three separate extensions to the original bid deadline, Qantas said the preferred bidders are being notified today. A transition will occur in early 2021.

"Qantas will not consult with its ground handling employees and their representatives on the next steps. Affected employees will be entitled to a redundancy package and given support to transition to new jobs outside the business," the company said in a media statement.

"It's expected that there will be a range of opportunities for some impacted team members will suppliers in the sector as travel demand gradually recovers."

Jetstar has already transitioned its ground handling operations at six airports to external suppliers.

Qantas reported a $2.7 billion statutory loss in FY20 due to COVID-19. The company is projecting further significant losses in FY21 due to a drop of revenue in excess of $10 billion.

The airline has taken on in excess of $1.5 billion in additional debt since the start of the pandemic.