Qantas suffering huge losses

Posted 29/10/2011

Qantas is suffering financially but agreeing to workers’ demands could risk its future, says the airline.

Chief executive Alan Joyce said industrial action by the licensed engineers’ union, pilots’ union and Transport Workers’ Union is costing Qantas $15 million a week in lost revenue.

He said the situation was very serious and was impacting both passengers and the company’s bottom line.

But he added: “Agreeing to the union’s unreasonable demands would have a far greater cost on the company including risking the future of Qantas.”

Speaking of the engineers at the Qantas annual meeting, Joyce said: "They want to be paid to do work that no longer exists due to new generation aircraft. Effectively they want a veto on management decision making."

The total number of Qantas passengers impacted by the industrial action since August is 70,922 from 129 cancelled flights and 387 delayed flights.

In addition, Qantas has grounded seven aircraft - four Boeing 767s and three Boeing 737s – due to ongoing concerns about the reliability of the fleet and a backlog of maintenance due to union action.

Outside the Qantas annual meeting, TWU federal secretary Tony Sheldon told reporters that baggage handlers and other ground crew had endorsed further industrial action at hour-long stop work meetings.

By Travelmole Asia
 

Originally published 29 Oct 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/19a180cc/l/0L0Stravelmole0N0Cstories0C11499980Bphp0Dmpnlog0F1/story01.htm