Australian Airline Qantas will begin to hire externally by outsourcing many job roles that will be based in India, in a move to invest in AI technology. The job cuts are set to start in 2027, according to the company’s CEO, Vanessa Hudson, as the airline looks to modernise Qantas ‘ IT system.
Qantas invests in AI with strategic partnership
Qantas has signed a strategic partnership with Irish technology consulting company Accenture; the partnership will entail modernising back-end systems and changing the way its data is processed. According to Qantas, the airline runs on more than 1,000 legacy applications that were never designed to work together and embracing new AI technology will have lasting positive effects on the carrier’s future.
Most work will be undertaken by the company Accenture and services will be provided by their teams in India, causing 850 roles at the Qantas Group to be affected, some as soon as mid-2027.
The air carrier already invests 1 billion Australian dollars in technology per year, which has led to the construction of the Qantas Product Innovation Centre in Adelaide, which already comprises thousands of employees who use AI and is to commence the employment of 400 more roles.
CEO Vanessa Hudson commented on the change, stating that,
“The scale and speed of change in this space is unprecedented and unlike anything businesses have seen in generations. Leading organisations around the world are well progressed in using technology and AI to completely transform how they work, and standing still is not an option for us.”
Changes in the aviation industry
Communication on this change comes after the carrier updates on its market health and issues that are affecting it, such as higher fuel costs coinciding with flight cuts and fare increases. The airline has raised international fares and increased fuel surcharges on long-haul tickets to offset the cost of fuel, which has risen from Qantas’ previous prediction of $2.5 billion to anywhere from $3.1 to $3.3 billion.
Despite this, Qantas has had one of the biggest fleet renewals since its creation and its Australian workforce appears to be continuing to grow, with 28,000 employed and 4,400 new operational roles created since 2023.
What do you think about Qantas’ move to invest in more AI technology? Let us know in the comments!
