Jobs To Go As Airline Attempts Recovery
The Age
Wednesday April 1, 1998
The airline Ansett Australia yesterday put in place another plank in its cost-saving "recovery program" when it announced a major restructuring of its retail travel operation, which will cost 89 jobs but save "many millions" of dollars.
The company will axe retail outlets in regional centres in Western Australia, Northern Territory, Queensland and Tasmania, and shut two retail stores in Melbourne's CBD, at St Kilda Road and Bourke Street.
In addition, Ansett revealed that more than 1000 of its 12,500 staff had expressed interest in taking a voluntary redundancy package after the company called for employees to come forward last month. Yesterday was the deadline to register names.
The airline, which is working hard to lift profits, cut overheads, increase yields and improve operational efficiencies, is preparing for a major organisational overhaul this year.
Ansett did well in its first half to post a group net profit of $45.1 million for the six months to 31 December, up from $7.6 million previously, after a strong domestic performance.
However, the airline's international division, which flies only to Asian destinations, lost $26.9 million.
Ansett's retail outlets in Broome, Port Hedland, Kununurra, Karratha, Kalgoorlie, Cairns, Mackay, Rockhampton, Townsville, Coolangatta, Rocklea, Alice Springs, Launceston and in the Melbourne CBD will shut by the end of June, although Traveland, in which Ansett has a 50 per cent stake, is looking at taking over some of the sites.
Ansett is consolidating all corporate retail travel into one centralised office in each major capital city. It will upgrade corporate travel management and have 24 hour corporate travel services. The airline will keep one major street front office in each capital to maintain its brand image.
The workers displaced by the retail branch closures will be offered redeployment, transfers or, in some cases, the opportunity to work with the Traveland group.
"Compulsory redundancy of staff will be a last resort," Ansett said in a statement. Its policy of calling for people interested in taking voluntary redundancy is aimed at creating a jobs bank, which would also allow the likes of displaced staff from the retail operation to take up another position currently held by someone who wants to leave the company.
In a bid to boost its Asian business, Ansett has also slashed prices on packages to China, Malaysia, Japan and Hong Kong. Fares and accommodation to Shanghai have been cut to $949, to Hong Kong to $959, and Kuala Lumpur to $849.
© 1998 The Age