Qantas Plans to Consolidate Heavy Maintenance Work into Brisbane and Avalon
The restructure is necessary as there is currently not enough heavy maintenance work required for three separate facilities and the introduction of new technology and modern aircraft means there will be a further 60% reduction in heavy maintenance requirements over the next seven years. As a result of the restructure, heavy maintenance on Boeing 737 aircraft will move from Tullamarine and be maintained in Brisbane along with B767 aircraft and Airbus A330s. The base at Avalon will continue to maintain Boeing 747s. It will also conduct some work on B737s and B767s, some aircraft reconfiguration work and remain available for one-off maintenance tasks. Qantas will cease heavy maintenance at Tullamarine by August; however line maintenance will continue to be conducted at the facility employing more than 300 people.
Qantas CEO Alan Joyce said, "Qantas has an outstanding track record in aircraft maintenance, and our commitment to setting a global standard for safety and quality in airline maintenance will never change. Like the manufacturing industry, aviation maintenance is a labour and capital intensive sector. Our cost base in heavy maintenance is 30% higher than that of our competitors we must close this gap to secure Qantas' future viability and success." According to the company, there will be a net reduction of 500 positions as a result of the restructure. There will be a reduction of 422 positions at Tullamarine. At Avalon, 113 positions will no longer be required due to the recent retirements of five 747 aircraft in 2012. There will be 30 new positions available in line maintenance in Melbourne and 5 jobs in Sydney. All Qantas heavy maintenance apprentices will be given the opportunity to finish their apprenticeships with Qantas, the company said.
Copyright 2012 MarketLineAll Rights Reserved