Wounded Roo

Qantas’s dramatic announcement of massive job losses and unprecedented cost-cutting measures came as no surprise. They were widely predicted before chief executive Alan Joyce in late February confirmed the carrier’s $235 million after tax loss in its first half to December 31. Are things as bad as they seem or is the iconic Flying Kangaroo crying wolf?

If Qantas chief executive Alan Joyce wants to slash $2 billion in costs off the airline’s bottom line through a range of measures that include dumping 5,000 jobs and freezing everyone’s wages until black ink returns to the balance sheet his toughest challenge may yet lie ahead.