Qantas considers 300 cuts in Avalon

Qantas' review called "another move towards offshoring."

Justin Loiseau

Justin Loiseau hails from the great united state of North Carolina, where he started his first business at the ripe age of five: melting crayons into candles. With the infamous Crayola Crash of 1994, Justin moved on to study economics and environmental studies as a Morehead-Cain Scholar at the University of North Carolina. He has worked in a variety of sectors across the globe, from management consulting to the United Nations, and once spent three months examining invasive snails in Vietnam. Justin discovered The Motley Fool in 2012 and it’s been love ever since. Creativity, contrarianism, kerfuffling… what more could one want? When he’s not playing the Fool, you can find Justin at the University of Auckland, where he is pursuing a Masters in Economics as a Rotary Ambassadorial Scholar. Justin finds biogas digesters fascinating and can unicycle a mile in seven minutes.

Published September 17, 2013 4:04 pm AEST

Qantas (ASX: QAN) may be calling it quits in Avalon. In an attempt to streamline operations and cut costs, Qantas is reviewing the remaining 300 engineers, maintenance workers, and contractors at its Victoria facility.

The review will most likely lead to layoffs – and it makes sense. Simply put, the facility's out of work. Domestic CEO Lyell Strambi said in a statement, "In fact, there will be no scheduled maintenance for the equivalent of five months each year for the next four years, starting in March 2014."

The most recent news has gone political, according to the Sunday Morning Herald, with State Labor opposition leader Daniel Andrews blaming Premier Denis Napthine for not fighting hard enough for local jobs. For its part, the Australian Workers' Union noted its surprise and called Qantas' review "another move towards offshoring." While Avalon isn't likely to see expansion going forward, Qantas has slotted $30 million towards upgrades at its Brisbane heavy maintenance facility, the undisputed "winner" in Qantas' consolidation.

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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