Qantas secures more funding to wait out coronavirus crisis, shares rise

Qantas says that it has the ability to scale up quickly if demand returns due to its strong financial position. (AFP)
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Updated 06 May 2020
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Qantas secures more funding to wait out coronavirus crisis, shares rise

  • More than 25,000 of the airline’s staff have been stood down until at least the end of June at a time when the carrier is flying 5 percent of its pre-crisis domestic passenger network and 1 percent of its pre-crisis international network

SYDNEY: Qantas Airways said on Tuesday that it had secured enough funding to last it through the end of next year, boosting its shares,
as it reviews its fleet with the expectation that most international travel could take years to rebound.
The Australian carrier secured A$550 million ($352.99 million) against three of its Boeing Co. 787-9 aircraft and said that it could raise another A$2.7 billion from other aircraft assets if needed.
It also said it would reduce its cash burn rate to A$40 million a week by the end of June.
“This means we are very well placed to ride this out and to take part in the recovery when it arrives,” said Qantas Chief Executive Alan Joyces.
“Because Australia has flattened the curve there is some hope travel demand will come back faster than expected,” he said, referring to a plateau in the infection rate.
Joyce also said the airline saw no need to raise equity.
Qantas shares climbed as much as 5.6 percent during trading after the market update.
Australia has recorded about 6,800 infections and 96 deaths from COVID-19 and has maintained low single-digit daily rises in new cases for weeks, leading to a loosening of social distancing restrictions in some states and hopes for a domestic tourism revival this year.
Qantas has canceled most domestic flights until the end of June and international flights until the end of July.

HIGHLIGHTS

• Secures $353m against three 787-9 jets.

• Enough liquidity to last until Dec. 2021.

• International demand could take years to return.

A full recovery in international travel, with the possible exception of New Zealand, could take years, Joyce said, sparking a review of the airline’s fleet.
He said that Qantas has shelved plans to order up to 12 Airbus SE A350 planes capable of non-stop Sydney-London and Sydney-New York flights, and could keep some of its 12 A380s grounded depending on the pace of a recovery. “We have to plan for a range of scenarios,” Joyce said.
More than 25,000 of the airline’s staff have been stood down until at least the end of June at a time when the carrier is flying 5 percent of its pre-crisis domestic passenger network and 1 percent of its pre-crisis international network.
Joyce said that there was the ability to scale up quickly if demand returned and the airline was well-placed to pick up domestic and international market share during a recovery due to its strong financial position.
The company’s smaller rival Virgin Australia Holdings last month entered voluntary administration after being battered by the coronavirus crisis and a high debt load.
Virgin’s administrators have said that more than 20 potential buyers have expressed interest in buying the country’s second-largest airline.


Artificial intelligence is transitioning into a ‘digital employee’

Updated 27 February 2026
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Artificial intelligence is transitioning into a ‘digital employee’

  • AI can be an effective tool, business leaders tell Arab News
  • Not about jobs, but ‘convergence of human capital and AI’

RIYADH:  Artificial intelligence is fundamentally reshaping the world of work, transitioning from a supporting tool to an active partner that is radically changing the nature of professions and productivity standards.

Amidst the current global transformations, an active regional digital environment is emerging.

This is being led by Saudi Arabia through Vision 2030 and massive investments in smart infrastructure, providing a living model for studying the implications of this partnership between humans and machines on the future of work in the region.

Arab News spoke to various business leaders about the emerging shape of the sector.

Salem Bagami, co-founder of Metatalent, said the ideal relationship between humans and machines at work should be complementary and collaborative.

Humans would bring creativity, emotional intelligence, and complex decision-making, while machines excel at processing big data and performing repetitive, precise tasks.

He believes that this type of balanced partnership would lead to unprecedented productivity and innovation.

While machines excel at processing big data and performing repetitive, precise tasks, humans would bring creativity, emotional intelligence, and complex decision-making. (Supplied)

Mohammad Al-Jallad, chief technologist and director at HPE, said AI has gone beyond being merely an executive tool to becoming a “digital employee” entrusted with automating routine tasks and providing insights based on data analysis.

He believes that the real opportunity lies not in the debate over job replacement, but in “the convergence of human capital and artificial intelligence.”

AI should augment human teams by taking on menial and routine tasks, enabling employees to focus on critical thinking, creativity, and ethical reasoning, significantly improving operational results.

Bagami also emphasized the complementary nature of this partnership. “The ideal relationship between humans and machines at work is one of collaboration, where each complements the others.”

He explained that humans bring creativity, emotional intelligence, and nuanced decision-making, while machines excel at processing big data and performing repetitive tasks efficiently, leading to increased productivity and innovation.

Opinion

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Salem Alanazi, chairman of Jathwa Technology Co., notes a significant trend among Saudi Arabia companies toward using AI applications to provide faster services to customers at lower costs.

The emergence of the “virtual employee” available around the clock has eliminated the need for some traditional jobs in specific sectors.

Alanazi warns that some companies’ reluctance to adopt AI may expose them to real risks. “All those who hesitated to benefit from AI applications have a lack of understanding of these technologies.”

He said those who adopt these technologies will be able to offer lower-cost, higher-quality services, which will affect the market position of companies that lag behind.

Ali Aljumhour, CEO of VALUE Consultancy, said that the transition of AI into a partner has reshaped the list of most in-demand skills in the job market.

Skills such as “prompt engineering,” “human-machine integration,” and “digital ethics” are becoming increasingly important.

He added that AI has become an instantly available “technical knowledge base,” shifting the criteria for professional distinction toward those capable of smart interaction with these technologies.

In terms of ethics, transparency, and trust, Alanazi points to the complexities of global AI governance, where legislation overlaps and evolves rapidly to keep pace with potential risks, particularly in the areas of cybersecurity and privacy.

Ali Aljumhour, CEO of VALUE Consultancy. (Supplied)

Al-Jallad emphasizes this crucial dimension, noting that providing responsible and reliable AI solutions that meet the highest standards of transparency is a key priority, especially in regulated sectors.

Bagami believes there should be basic standards for the ethical use of Al, emphasizing the need for transparency, accountability, and fairness, along with using diverse data sets to prevent bias and protect privacy.

He believes that building trust between humans and machines requires clear explanations of how systems work, giving users the opportunity to provide feedback and conducting periodic performance reviews.

On performance evaluation, Aljumhour said: “I expect radical changes in standards, shifting from measuring individual effort to evaluating the quality of the partnership between humans and machines.”

There should be a focus on the quality of inputs provided to intelligent systems, the accuracy of review and modification, and complex decision-making based on outputs.

He warns, however, of new risks that may arise, such as over-reliance on AI or difficulty in determining responsibility for mistakes.

In the employment sector, Aljumhour expects fundamental changes in standards.

There will be questions and tests focusing on measuring skills in dealing with AI, such as asking candidates about their experiences of collaborating with these systems, or testing their ability to formulate effective requests for complex tasks.

Aljumhour identifies significant human challenges in this transition, with “fear, loss of power, and exclusivity of knowledge” being the biggest concerns for experienced employees.