'Strike grounds planes and flights'

QANTAS will ground another two aircraft and cancel a further 80 domestic flights over the next month in response to industrial action by its engineers.

The airline has announced that two Boeing 767 aircraft will be grounded from Monday, which will cause some flights, mainly between eastern states and Perth, to be cancelled.

That takes the number of aircraft taken out of service by Qantas to seven, and the number of flights cancelled as a result to about 500.

Qantas chief executive Alan Joyce says a ban on overtime by the Australian Licensed Engineers Association has forced the grounding of the aircraft.

News of the grounding sent the airline's shares down more than 5 percent.

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