Qantas boss Alan Joyce has warned that it would have to sell Jetstar and make further cuts to jobs and services if proposed changes to the Qantas Sale Act are passed.
In a frank opening statement to the Senate inquiry over amendments to the Act this morning, Joyce insisted the airline would be strangled and unable to compete.
He warned politicians that if they passed the amendments, which would require the group to treat international crews as Australian in terms of wage and conditions with all heavy maintenance to be conducted in Australia, Qantas would suffer.
“If Australians want a truly competitive national carrier, this Parliament cannot tie up Qantas in this way. You would be responsible for making Qantas less competitive just when we most need the freedom to compete.”
Joyce argued that Qantas has done nothing to contravene the “spirit or intent” of the bill which fundamentally exists to ensure Qantas remains a majority Australian-owned flag carrier.
According to Joyce, Senator Nick Xenophon’s proposed changes, would “strangle” the group to the point that some of its international services would no longer be viable.
“The proposed amendments would quite simply force the Qantas Group to withdraw from services connecting Darwin and Cairns to the tourism and trade markets of Asia and Europe,” he predicted.
Jetstar would also be a victim if the majority of its heavy maintenance had to be conducted in Australia. Competitors with no such restrictions would enjoy a huge advantage, leaving Qantas with a stark choice.
“[Either] allow Jetstar to fail within the confines of the Qantas Sale Act or sell it to allow it to succeed outside it ,” he said. “I want it clearly understood that the certain consequences of these Bills would be job losses and reduced aviation access.”
Australian Tourism Export Council (ATEC) managing director Felicia Mariani branded the proposed amendments “a direct attack on Australia’s tourism industry,” and underlined the impact of Qantas’ withdrawal from key international routes.
“Aviation is the lifeblood of the Australian tourism industry and ATEC is very concerned by Senator Xenophon’s narrow sighted view of Qantas’ role in our community,” she said.
