The Australian and International Pilots Association has today congratulated the Fair Work Ombudsman for commencing legal action against Jetstar for allegedly contravening workplace laws. Today’s announcement comes after AIPA lodged a complaint in May 2011, referring the matter to the FWO complex investigations unit.

Jetstar made headlines last year when four Australian pilot cadets were sent by the company across the Tasman to open New Zealand bank accounts and apply for New Zealand tax file numbers. The cadets signed contracts to be paid in New Zealand dollars.

By establishing the contract in New Zealand, Jetstar was able to avoid paying the Australian Modern Pilots Award. Following public exposure, the arrangement was altered by Jetstar, with the cadets signed to Australian common law contracts, although still below the rates stipulated in the relevant Enterprise Agreement.

AIPA President Captain Barry Jackson said today’s news, that the FWO is moving to commence legal action Jetstar over the arrangement, was welcome.

“We congratulate the Fair Work Ombudsman for investing time and energy into examining AIPA’s complaint,” Captain Jackson said.

“Essentially, what Jetstar was trying to do was to employ Australian pilots, flying in Australia, but operating under New Zealand labour conditions.

“This sort of situation would be instantly recognisable as wrong in just about any other industry, but because of the itinerant nature of pilot work, Jetstar was able to attempt to muddy the waters. Today the Fair Work Ombudsman has shown Jetstar those attempts have not worked.

“When AIPA received news of this arrangement last year we said it had the potential to erode pilot safety standards in Australia. Circumventing Australia’s system by using offshore jurisdictions to establish contracts is a slippery slope indeed.

“If Jetstar and other Qantas subsidiaries are allowed to operate in Australia, yet legally hire cadets overseas to avoid employment conditions here, then things will start to slide pretty fast. Thankfully, the Fair Work Ombudsman has shown Jetstar’s management they will not be able to get away with this as easily as they might have originally hoped.”

Anil Lambert (Mountain Media) 0416 426 722

The Australian and International Pilots Association has raised concerns about Qantas’s newly announced Jetstar Hong Kong venture.

AIPA President Captain Barry Jackson said pilots were worried that the fifty-fifty venture between Qantas Group and China Eastern Airlines looked to be following a well-worn path.

“Since the collapse of management’s much trumpeted ‘Red Q’ joint venture plan in Malaysia, they have justifiably been under enormous pressure from investors and the flying public to put a clear plan forward for Qantas,” he said.

“My suspicion is that today’s announcement has been rushed out to keep the shareholders from banging down the backdoor for a little while.

“Like so much of what this current management does, it has a smoke and mirrors feel about it and I suspect nothing will happen anytime soon.

“This management sadly has a pattern of triumphant announcement followed by slow disintegration. This announcement once again looks to be following the path of raising more questions than answers.

“Will Jetstar Hong Kong take over seven years to turn a single dollar like Jetstar Asia? Or will it be more like Jetstar Pacific by sucking money out Qantas Group for years before being resumed by the National Carrier?

"How does Qantas management intend to get over the regulatory hurdles? Hong Kong has ver strict Incorporation and Principle Place of Business (IPPB) legislation that protects the city’s economy, so Jetstar must ensure they have done their homework.

“How will the fifty-fifty split with China Eastern Airlines work in practice? Who will take responsibility for standards? If things go pear-shaped, as they have in the past with other joint ventures who will carry the can? As yet not one cent has come back to Australian investors so it is understandable that they are nervous.

“This current Qantas management seems intent of pursuing tricky, high-risk manoeuvres in Asia while jettisoning the strengths that have been built into the Qantas brand for over 90 years.

“That kind of approach is not good for investors, it’s not good for staff and – most importantly - it’s not good for the flying public.”

Anil Lambert (Mountain Media) 0416 426 722



While a Senate Committee report into the Air Navigation and Civil Aviation Amendment (Aircraft Crew) Bill 2011 and the Qantas Sale Act Amendment (Still Call Australia Home) Bill 2011 has avoided addressing the difficult issues facing Australian aviation, Senator Nick Xenophon’s dissenting report offers important recommendations that must be acknowledged by the government, the Australian and International Pilots Association said today.

AIPA Vice President Captain Richard Woodward said it was disappointing that the majority Senate Committee report had failed to consider important amendments to the Still Call Australia Home Bill, which addressed initial concerns of unviability.

However, he noted that the dissenting report, endorsed by Senator Xenophon and Senator Madigan, contained important recommendations that showed the way forward.

“It is unfortunate that the majority report has essentially ducked the key problems that need to be addressed in Australian aviation,” Captain Woodward said.

“The Still Call Australia Home Bill would have ensured that the national interest was served while at the same time allowing Qantas to thrive. It is curious that while the federal government is introducing laws to ensure the ongoing viability of the Australian shipping industry, the Australian aviation industry seems to be a somewhat of a blind spot.

“Senator Xenophon’s dissenting report, on the other hand, attempts to find solutions and for that reason it needs to be acknowledged and acted on by government.

“The dissenting report recognises that the Qantas Group has been using Asian cabin crew on what are, in effect, Australian domestic routes. These workers are paid just a fraction of the Australian minimum wage, despite performing work – in Australia – that has traditionally been performed by Australians.

“The Qantas Group has been able to get away with this by ‘tagging’ international flights that come into Australia with an international flight code, despite those flights operating on domestic routes once in the country.

“Flight codes are the only means used to judge whether a flight is international or domestic, which is highly problematic, seeing as those codes are designated by the airline itself.

“Self-regulation is self-delusion. Senator Xenophon’s dissenting report would address this ridiculous and damaging situation by making sure domestic flights are recognised as such.

“We know current management at Qantas is intent on outsourcing the jobs of Australian Qantas workers to Asia. Senator Xenophon’s recommendation in this area would prevent them from hollowing out the Flying Kangaroo in this country.”

Richard Woodward (AIPA) 0416 030 529, Anil Lambert (Mountain Media) 0416 426 722