Monday, February 6, 2012

Qantas threat to air services

After a string of positive news on flight connections into Cairns Airport, this morning Qantas boss Alan Joyce delivered a warning before a Senate inquiry on proposed restrictive labour legislation for the airline:
"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 said.

"The impact on regional tourism and development would be immediate and negative. Strangling our international business and forcing us to pay uncompetitive wages compared to our foreign airline competition is no way to make us stronger, better or more Australian."
Joyce also suggested that it may force Qantas to sell Jetstar to enable it to survive outside the Qantas Sale Act. When Joyce grounded Qantas I previously posted that a win for Qantas would be a win for Cairns. That may offend the ideological sensibilities but is the reality of our position for connections with Asia.  

Further coverage at Cairns Post, and also at BusinessSpectator.

1 comment:

  1. I agree. The airline business is one of the most competitive in the world and we shouldn't be hampering it with inappropriate regulation. Qantas is in a lot of trouble with Borghetti at Virgin, which has really lifted its game lately and is attracting a lot more business flyers than previously.