Jobs on the line in airline decision
Wed "The Australian"
Jobs on the line in airline decision
Steve Creedy
February 09, 2005
SEVERAL hundred jobs at Adelaide-based National Jet Systems are hanging on a imminent decision on who will operate and maintain a fleet of Boeing 717s for Qantas regional unit Qantaslink.
The decision, which could be announced as early as this week, will resolve a hard-fought battle for the work between NJS and Qantas low-cost subsidiary Jetstar.
Qantaslink announced in October that from July it would begin replacing eight 65-75 seat BAe 146s operated by NJS with a similar number of 115-seat 717s.
Qantaslink plans to use the planes in Western Australia, the Northern Territory and Queensland. It will retain two BAe 146s whose leases do not expire until the end of 2006.
Jetstar currently flies the 717s in a 125-seat configuration, but is progressively replacing them with bigger Airbus A320s. It has lodged a bid to keep maintaining and operating the planes for Qantaslink and says a decision in its favour could accelerate its expansion to Western Australia.
Jetstar staff have flown and maintained the 717s since they arrived in Australia under the Impulse Airlines banner and the airline has a heavy maintenance base at Newcastle, NSW.
But incumbent NJS is also competing for the contract to replace the work it currently performs with the BAe 146s.
As well as its work for Qantas, NJS provides freight services to Australian Air Express and flies for an array of resource companies in Western Australia.
It has had a long-term relationship with Qantas and is an experienced operator of outsourced services.
Last night neither side knew who had won the competition, but both have previously expressed confidence that they would prevail.
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