Qantaslink deal saves 400 jobs
Sat "Weekend Australian"
Qantaslink deal saves 400 jobs
By Steve Creedy
12feb05
UP to 400 jobs at Adelaide's National Jet Systems are safe after Australia's biggest aviation services contractor beat Jetstar for a contract to operate and maintain a fleet of eight Boeing 717s for Qantaslink.
NJS management and staff were celebrating yesterday after the company was named the preferred bidder to operate the 115-seat passenger jets on Qantaslink regional routes in Western Australia, the Northern Territory and northern Queensland currently serviced by smaller BAe 146 aircraft.
It is understood that pilots at NJS offered pay, productivity and training concessions to help win the contract.
"It really is a very wonderful day," said NJS managing director Daniela Marsilli, who confirmed that losing the contract would have caused job losses in four states.
"It was always going to be a huge loss for National Jet, but I think with this decision it's a win-win."
The Boeing 717s will be transferred to NJS from Jetstar from July as they are replaced by the bigger A320s. NJS will continue to fly two BAe146s for Qantaslink and will continue to use the aircraft to service its resources sector and freight contracts.
A decision in favour of Jetstar would have savagely curtailed a 14-year relationship between Qantas and NJS, which operates the BAe146s scheduled to be replaced by the 717s.
Qantas chief Geoff Dixon acknowledged yesterday that this was a factor in the Qantas decision, which he said was still subject to an operating agreement being negotiated.
The announcement coincided with confirmation yesterday that the future of Jetstar maintenance operations in Newcastle, where the 717s are serviced, was also assured.
Jetstar chief executive Alan Joyce announced that the airline would spend $29 million on an expanded heavy maintenance base at Newcastle Airport. Backed by a NSW government support package, Newcastle won against bids from New Zealand, Singapore and Australia.
Mr Joyce said the win would mean about an extra 50 skilled jobs at the base, and more if the airline went beyond its target of 23 aircraft.
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