 Asian airlines are particularly vulnerable |
Australian airline Qantas is getting rid of 1,400 staff, in response to a slowdown in Asian travel caused by the Sars virus. The job losses come less than a month after Qantas announced it would slash international operations by about 20% in April-July because of the global downturn caused by fears of terrorism.
Sars, which has infected more than 2,800 people, mainly so far in east Asia, has had a devastating effect on travel around the region.
With tourist bookings to destinations such as Singapore and Hong Kong down by at least one-third already, airlines in the region are having to cut costs further.
Other regional carriers, including Cathay Pacific and Singapore Airlines, have also announced deep cuts.
Protective move
"We regret the need for this action," said Qantas chief executive Geoff Dixon.
"However, it is vital we move quickly to protect our position in a very difficult and competitive industry.
"Our aim is to protect the jobs of the vast majority of Qantas employees, to ensure we continue to meet the needs of our many shareholders and to position ourselves for the inevitable recovery."
He said further job cuts were not out of the question.
The markets seemed unimpressed with Qantas's action, sending its shares down more than 3%.