Qantas (QF) plans to consolidate, not outsource, its maintenance operations.
In a speech on the airline’s half-year results, QF CEO Alan Joyce told investors and journalists the company will reduce its engineering and maintenance expenditures—which is nearly $1.4 billion a year, or at least 30% higher than its competitors—through a consultative review of its heavy maintenance procedures, a consolidation of maintenance tasks and more efficient performance of maintenance tasks.
“With aircraft retirements, there is simply not enough heavy maintenance work to justify the three facilities in Melbourne, Brisbane and Avalon,” QF CEO Alan Joyce said. It will consolidate its Airlines Aircraft Airworthiness Group in Sydney, Brisbane and Melbourne; maintenance operations centers in Melbourne and Sydney; and Commodities Management Group in Melbourne into its home base in Sydney.
Its engineering staff is now proceeding with what it calls “maintenance on demand,” for new-generation aircraft. Under the new process, engineers will not conduct aircraft checks, which are not required. “This will bring our practice into line with both the manufacturers’ guidelines and Civil Aviation Safety Authority regulations,” Joyce said. “It will allow our engineers to be assigned to aircraft that require attention.”
Over the next two months, QF will consult with unions including AMWU, AWU, and ALAEA on the adjustments. It anticipates that approximately 500 positions will be affected by the immediate changes—with no jobs going offshore.
“Overall our business is strong, we are exerting financial discipline, and we are well placed to handle this complex economic and competitive environment,” Joyce said. “But … the highly competitive markets and tough global economy in which we operate mean that we must change”.
Article Source : ATW Daily News
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