Offshoring and Cabotage
It certainly appears that the opponents of the latest Jester oops sorry Jetstar machinations to use overseas pilots are entirely missing the point regarding the validity of the strategy undertaken by Buchanan and his cronies. This is notwithstanding the fact that obviousely management have a vested interest in minimising costs so that they are eligible for their performance bonuses, however that is another thread.
1. The basis for the strategy seems to be founded on the ability of Jetstar to enter into commercial arrangements with overseas operators to fly international routes. What an overseas entity does, whether Jetstar is a shareholder or not, is really of no consequence to Australian pilots, providing the routes are not included in any of the Australian bilateral arrangements.
2. Once the flying comes under the auspices of an Australian determination it changes the game entirely. Jetstar essentially cannot just give away seat capacity to a subsidiary entity, or anyone else for that matter unless they are intending to give away the revenue stream and any profits that may result. This would obviousely be pure fiction and nothing less than subterfuge on Jetstar's part should they claim this outcome while being a shareholder.
3. These joint service agreements are still strictly controlled and note that pooling of revenue is disallowed as is independance of service provision. Jetstar will be drawing a very long string if and when it moves to the next step, as I believe they intend to do, and that is have their foreign entities operating their bilateral capacity with Australian Pilots who are contracted to their subsidiaries. This is an abuse of their entitlement to bilateral seating capacity and a blatant use of cabotage, illegal everywhere in the world except, would you believe, Chile and Australia.
We are indeed on a rapid descent to the third world level.