Qantas tells 30,000 staff members to take unpaid leave until May amid coronavirus crisis

Qantas has told 30,000 staff members to take unpaid leave until May.

The airline released a statement to the ASX saying they made the decision after cutting 90 per cent of their flights.

The move applies to baggage handlers, catering staff, flight attendants and pilots.

It comes after 90 per cent of international flights and about 60 per cent of domestic flying were cut earlier this week.

More than 150 aircraft will be temporarily grounded, including all of Qantas’ A380s, 747s and B787-9s and Jetstar’s B787-8s.

During the stand down, employees will be able to draw down on annual and long service leave, including leave at half pay and early access to long service leave.

Employees with low leave balances at the start of the stand down will be able to access up to four weeks’ leave in advance of earning it. 

Senior Group Management Executives and the Board have increased their salary reductions from 30 per cent to 100 per cent until at least the end of this financial year. 

‘We are not getting paid to the end of the year,’ CEO Alan Joyce said. 

‘The efforts to contain the spread of Coronavirus have led to a huge drop in travel demand, the likes of which we have never seen before. This is having a devastating impact on all airlines.

‘We’re in a strong financial position right now, but our wages bill is more than $4 billion a year. With the huge drop in revenue we’re facing, we have to make difficult decisions to guarantee the future of the national carrier.

‘The reality is we’ll have 150 aircraft on the ground and sadly there’s no work for most of our people. Rather than lose these highly skilled employees who we’ll need when this crisis passes, we are instead standing down two-thirds of our 30,000 employees until at least the end of May.’