From THE AGE... I have put some interesting excerpts in Bold. Current Jetstar pilots, if you needed further proof that you are being bent over... read on.
Jetstar's embrace of Australian Workplace Agreements (AWA) will continue, but the airline says it has a fallback option if federal Labor wins government and abolishes the controversial contracts.
Speaking at the National Aviation Press Club, the head of the low cost Qantas offshoot, Allan Joyce, defended the airline's plans to hire 250 pilots and engineers on individual contracts.
"Jetstar is seeking to pursue a more direct relationship across our workforce, to work cooperatively as management and staff, to drive our sustainable future growth path against this competition," Mr Joyce said.
The Jetstar chief said federal Labor had been listening to the Qantas group's concerns about industrial relations policy, but wouldn't elaborate on the content of the talks.
"I think they've been listening to what our industry has to say, both the mining industry and the aviation industry, they are listening to the issues
I've raised here about the flexibility that we need," he said.
Jetstar is keen to introduce the AWAs to circumvent the pilot seniority system currently in place.
The airline would like to provide greater incentive for captains at rivals companies to jump ship. (Yes, come to Jetstar and be paid 40% less than the market rate!)
AWAs would also allow the company to recognise new licensing standards for engineers and pay them accordingly.
But Mr Joyce said if AWAs were abolished, the flexibility sought could eventually be found in collective agreements.
"We've got very good issues with our pilot bodies and our engineers," Mr Joyce said.
"We probably over a period of time can build these into existing agreements and that is a possibility. (Ahhh the JPC!)
"The issue for us is that that does take a lot of time ... we can't respond as quickly as we could through the AWA mechanism."
In a speech about the opportunities and risks in the expanding low cost domestic aviation market, Mr Joyce pointed to the entry of Singapore Airways-backed Tiger Air.
"Whilst Jetstar takes any new competitor very seriously - one can't not help but think when Tiger's first year of pre-tax profit will come," he said.
"Their operations have and continue to lose money."
Tiger has promised rock-bottom airfares to the Australian public when it begins to fly here later this year.
Mr Joyce said Jetstar maintained faith in its model, amid rumours the rival Virgin Blue is about to announce the launch of an ultra low cost airline and massive fare reductions by struggling low cost carriers (LLCs) in Europe.
"Jetstar will not pursue the almost zealot-like approach of some European LCCs where the aspiration of offering low to zero fares will be supported by aggressive ancillary intakes," he said.
Since its launch three years ago, Jetstar has tripled in size.
The company plans to expand its operations in Asia, with Jetstar International offering an extra two flights per week from Sydney to Bali from late October.
It also aspires to being a pan-Asian carrier and wants 70 per cent of its operations to be international by 2011.
Mr Joyce confirmed Jetstar has increased its order for new Boeing 787 Dreamliner aircraft to 15, from 12, with the first planes due to arrive by August next year.
(There is no Jetstar order for 787's... they are all from the Qantas group.. CK)
The broader Qantas strategy of having two brands was working well, Mr Joyce said.
"One of the things that we've discovered was that on some of the routes where we both operate, we've got a better outcome than with one carrier," he said.
Both brands are making money flying to the Gold Coast, while internationally, the Honolulu route had also benefited from the strategy, Mr Joyce said. (Tell that to the passengers stranded there.)