🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

BRIEF-Qantas To Raise Up To A$1.9 Bln, Cut At Least 6,000 Jobs

Published 25/06/2020, 09:02 am
© Reuters.
QAN
-

June 25 (Reuters) - Qantas Airways Ltd QAN.AX :

* EQUITY RAISING OF UP TO $1.9 BILLION

* ISSUE PRICE FOR NEW SHARES UNDER PLACEMENT OF $3.65

* THREE YEAR STRATEGY TO GUIDE RECOVERY AND RETURN TO GROWTH IN CHANGED MARKET

* AROUND 100 AIRCRAFT TO BE GROUNDED FOR UP TO 12 MONTHS

* AROUND 100 AIRCRAFT TO BE GROUNDED FOR UP TO 12 MONTHS

* COSTS REDUCED BY $15 BILLION DURING THREE YEAR PERIOD OF LOWER ACTIVITY; $1 BILLION IN ONGOING COST SAVINGS PER ANNUM FROM FY23.

* REDUCING GROUP'S PRE-CRISIS WORKFORCE BY AT LEAST 6,000 ROLES ACROSS ALL PARTS OF BUSINESS

* IMMEDIATE FOCUS OF PLAN IS TO RIGHTSIZE GROUP'S WORKFORCE, FLEET AND OTHER COSTS

* CONTINUING STAND DOWN FOR 15,000 EMPLOYEES, PARTICULARLY THOSE ASSOCIATED WITH INTERNATIONAL OPERATIONS, UNTIL FLYING RETURNS

* HAVE TO POSITION OURSELVES FOR SEVERAL YEARS WHERE REVENUE WILL BE MUCH LOWER

* IMMEDIATE FOCUS OF PLAN IS TO RESTRUCTURE TO DELIVER ONGOING COST SAVINGS AND EFFICIENCIES ACROSS GROUP'S OPERATIONS

* RETIRING QANTAS' SIX REMAINING 747S IMMEDIATELY, SIX MONTHS AHEAD OF SCHEDULE

* A321NEO AND 787-9 FLEET DELIVERIES HAVE BEEN DEFERRED TO MEET GROUP'S REQUIREMENTS

* PROPOSED NON-OPERATIONAL JOB LOSSES OF AT LEAST 1,450, MAINLY IN CORPORATE ROLES, DUE TO LESS FLYING ACTIVITY

* INSTITUTIONAL PLACEMENT TO RAISE ABOUT $1,360 MILLION AND NON-UNDERWRITTEN SPP OF UP TO $500 MILLION

* FURTHER 2,900 PILOTS WILL BE ON STAND DOWN FROM JULY 2020 ONWARD

* AROUND 8,000 EMPLOYEES EXPECTED TO HAVE RETURNED TO WORK BY END OF JULY THIS YEAR

* GROUP'S FUEL WAS FULLY HEDGED FOR SECOND HALF OF FY20, AND 90% HEDGED FOR FIRST HALF OF FY21

* COST OF IMPLEMENTING PLAN IS ESTIMATED AT $1 BILLION, WITH MOST OF THIS REALISED DURING FY21

* SEES DECLINE IN CONSUMPTION TO JUNE 2021 WILL LEAD TO NON-CASH RECOGNITION OF HEDGE INEFFECTIVENESS OF $550-$600 MILLION IN FY20 STATUTORY RESULT

* GROUP EXPECTS TO REPORT A FULL YEAR RESULT BETWEEN BREAKEVEN AND A SMALL UNDERLYING PROFIT BEFORE TAX

* EMPLOYEES RETURNING TO WORK TO INCREASE TO AROUND 15,000 BY END OF CALENDAR YEAR 2020

* BOARD HAS DECIDED TO REVOKE INTERIM DIVIDEND, AVOIDING OUTFLOW OF $201 MILLION OF CASH

* ALAN JOYCE AGREED TO REMAIN QANTAS GROUP CEO AS RECOVERY PLAN IS IMPLEMENTED AND THROUGH TO AT LEAST FY23-END

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.