More turbulence for Qantas
Qantas’s brand reputation has continued to improve under Vanessa Hudson’s
leadership, driven in part by increased on-time performance and enhanced customer
service. This improvement has been supported by a $230 million investment in
customer-focused initiatives, including a revamped frequent flyer program, Wi-Fi on
international routes, enhanced baggage tracking, and a more efficient boarding
process.
However, relations with staff remain a significant challenge. Qantas’s cost base is
likely to face serious pressure as its 14 unions push for better deals, especially
considering the airline reporting its highest and second-highest profits on record over
the past two years.
The Transport Workers Union (TWU) and Qantas will return to the Federal Court for
further discussions regarding compensation for the 1,700 ground workers who were
unlawfully dismissed. Additionally, the TWU plans to file two “same job, same pay”
claims against Qantas, aiming to increase the wages of ground crews employed by
labour hire companies performing work for Qantas Freight by up to 14%.
Under the Albanese Government’s recently introduced Secure Jobs, Better Pay
legislation, labour hire workers must now be paid the same wages as directly
employed staff in identical roles. This new law has already affected Qantas, leading
to wage increases for over 800 cabin crew employed through labour hire, at a cost of
approximately $60 million to the airline.
Qantas short-haul pilots have rejected a proposed 26% pay increase spread over
five years, while more than 400 Qantas engineers recently held four-hour stop-work
meetings as they campaign for higher wages and improved working conditions.
Another significant challenge for Qantas is the state-owned Gulf carrier Qatar
Airways’ plan to acquire a 25% stake in Virgin Australia. This move could
considerably strengthen Virgin Australia’s position in the Australian aviation market,
potentially intensifying competition for Qantas on its most profitable international
routes.
Qatar Airways and Virgin Australia are currently seeking regulatory approval
to expand their partnership, including the introduction of wet lease flights. Under the
proposed arrangement, Qatar Airways would provide aircraft, pilots, and crew for
flights marketed as Virgin Australia services, operating from Sydney, Melbourne,
Brisbane, and Perth to Doha starting in June 2025.
Source: Has Qantas met its match with rival Qatar Airways by Robyn Ironside The AustralianOct 11 th ,
Unions same-job, same-pay claim hits Qantas by Ewin Hannan The Australian Nov 14 th