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Qantas CEO Geoff Dixon predicted rising aviation fuel prices in the industry could lead to a massive restructuring of the industry. He said that up to 100,000 jobs could be at risk, worldwide, by the end of the year. Qantas announced last week that it would shed over 1500 jobs in Australia and forego hiring another 1200.

In an estimate last week, Dixon had said that rising fuel costs had added two billion Australian dollars (1.94 billion US) to Qantas’ fuel bill this year. Qantas also last week cut its estimated capacity growth for 2008-09 from eight percent to zero and announced it would retire up to 22 older aircraft from its fleet.

Speaking at a business luncheon in Sydney today, he referred to airlines around the world resorting to cutting routes and capacity, grounding and retiring aircraft in a bid to manage the rising fuel costs. He said that rising fuel costs were likely to change the economics and mechanics of the industry for ever.

“The global aviation industry faces not just a shock or indeed a blip or indeed a crisis really but a permanent transformation,” he said.

Dixon believed that the United States would eventually ease restrictions on foreigners owning more than 25 percent of the voting stock in US airlines, sparking a new wave of consolidation in the industry.

He predicted long-established airline brands would remain but that the number of airline owners in the market place would dwindle.

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