Australia's national air carrier Qantas has reported a massive 83 percent plummet in its first half net profit, announcing hundreds of jobs must now go.

Qantas collected 42 million Australian dollars (44.78 million U. S. dollars) to Dec. 31, 2011, down from 239 million Australian dollars (254.84 million U.S. dollars) in the same period in the previous year.

With CEO Alan Joyce said up to 500 jobs will be shed, although that figure is expected to grow, possibly to 1500.

At Thursday's interim announcement in Sydney the controversial CEO has once again flown in the face of both Union and government pressure, detailing his job cuts strategy.

"We will be considering a range of options including: voluntary redundancy or redeployment; using annual and long service leave where appropriate; or leave without pay to give people experience in other areas of the industry, including other airlines," Joyce said.

The news comes as Qantas and its cheap flight conduit into Asia, Jetstar are looking to implement a massive shake-up in the aftermath of a Senate Committee Hearing into Australia's bumpy airline industry.

Joyce said that Qantas can't afford to continue with heavy maintainence costs although he has promised that no jobs will be ' going overseas' with foreign jobs certain to inflame the ire of the powerful Transport Workers Union (TWU).

The possibility remains that Jetstar which has regularly employed foreign flight attendants to work domestic flights a breach in immigration laws that could have far-reaching consequences for more than just the national tourism and airline industry around Australia.

Among the casualties would be the Northern capital Darwin which could lose a vital international air service.

Amid the restructuring, Qantas-owned Jetstar could lose its daily service between Singapore and Cairns - via Darwin - if legislation proposed by firebrand Senator Nick Xenophon last month lands in Canberra.

Last month Joyce fronted an inquiry after the airline signaled in a statement that the price of any changes where foreign crews enjoyed the same rates as local staff would make the route " unviable."

The airline said: "If the intent of the proposed amendments is to protect Australian jobs and encourage investment in the Australian economy, they fail."

Joyce has told reporters, "We have grave fears for the future of Qantas if these legislative proposals come into effect."