(US$899 million) as part of a A$2 billion (US$1.8 billion) cost-cutting initiative, the company announced. "Qantas will take action to permanently reduce costs in all parts of the Qantas Group through to FY17, including fleet and network changes, productivity improvements, consolidation of business activities, new technology and procurement savings," according to the airline. The move is the latest step in
ongoing turnaround efforts for Qantas. The carrier attributed its woes to, among other factors, a challenging competitive environment in which competitors, bolstered by foreign capital, have "increased capacity to Australia by 46 percent since 2009, more than double the world average," according to CEO Alan Joyce. Qantas on Thursday reported what he called an "unacceptable and unsustainable" underlying loss before tax of A$252 million (US$224 million) for the six months ending Dec. 31, 2013.