The plan is simple, and becoming clearer. The plan is not for a low cost airline, the plan is for a low salary airline. A big difference. The plan is to expand and develop the Qantas group without the current staff and terms and conditions and the unions. The easiest way to do it without massive industrial disruption, is to do it through the back door. The back door is, and has always been the "Qantas Group" which Jetstar is an integral part.
Dixons words, "the first 10 787s are going to jetstar, the rest will go to where they are best utilised". Fair enough, every company has the right to do that, and would be bordering on negligence if they didnt. But lets think what that means for mainline terms and conditions. How are they going to compete? Match Jetstar rates, or the Qantas group will expand around them, without them, despite them.
Dont think it will happen? Casing point, Australian Airlines. As of July, the orange paint disappeared, the blue shirts swapped for white, the paint job back to red and white, business seats put back in, the tickets sold at Qantas premium prices, low and behold, the only thing that didnt go back to the Qantas standard was the staff salaries! Big surprise? No. What was the industrial comeback? Nothing. What was the regulators response? Nothing. What was the final result? Qantas mainline product being operated by people on less money than the mainline staff agreement.
Does anyone out there think that G.D didnt realise the the significance of this industrial change?
Now, look forward a few years from now, and tell me that GD doesnt have this trump card up his sleeve ready to play it on the introduction of the 787 into the "Qantas Group"? Mainline will still exist, as the Qantas brand is valuable, and worth keeping. Jetstar will still exist, as it serves a purpose of servicing a completely different market. Unfortunately only the staff stuck in the middle and closer to the bottom will suffer. That is junior Captains and FOs, and all SO's. Management sure as hell wont suffer, and those at the top of the QF seniority list wont. Just dont expect them to do anything to help the unfortunates about to be shafted.