Qantas is grounding its entire fleet and locking out its staff in response to unions' industrial action.
The airline is fighting with its pilots, ground staff and engineers over pay, conditions and the outsourcing of jobs overseas.
Qantas boss Alan Joyce said all domestic employees involved with the dispute will be locked out as of 8pm (AEDT) Monday, but the fleet will be grounded immediately.
"It's an unbelievable decision, it's a very hard decision ... we have no alternative," he said.
Both the international and domestic fleet will be grounded indefinitely.