Although this was brought up on the 'Skygods'..
AJ's not Happy..thread it is worth regurgitating here..
Friday's Oz (Note: Not Steve Creedy, must be on hols..
):
Call to probe health of Qantas
A SENATE inquiry into Qantas has said a repeal of the Qantas Sale Act to allow more foreign ownership was an inadequate solution for the airline and has called for an “urgent” review of the national aviation sector.
A Senate committee says Qantas, led by chief executive Alan Joyce, has ‘no clear and consistent policy in terms of its future direction’ The rural, regional and transport affairs references committee, dominated by ALP members, said the government should first determine the “current financial situation” of Qantas beyond public reports before deciding on the type of parliamentary action required to help the airline. “The ‘Qantas problem’ cannot be fixed with a band-aid solution such as the Qantas Sale Amendment Bill 2014 proposed by the government or the debt guarantee proposed by the opposition,” the committee reported.
It called for a review of the “broader aviation sector in Australia” and the “challenges faced by Australian Airlines on a geographical and regulatory basis”.
“(We recommend) that the government take no further action on legislative or other reform and provide no assistance or guarantee to Qantas until an independent audit of the company has been completed,” the committee wrote.
“(That audit) should also seek to establish the level of any costshifting between Jetstar and Qantas.”
The transport unions — in claims pushed by committee member and independent senator Nick Xenophon — allege Qantas has shifted some of the costs of its Jetstar International expansion on to Qantas International operations.
The unions argue the Jetstar foray into Asia, a key aspect of Qantas chief executive Alan Joyce’s tenure, has been a disaster and the failures are being masked to some degree by “cost sharing”.
Qantas has repeatedly and strenuously denied those claims.
The committee called for the Air Navigation Act 1920 to be amended to “address the apparent loophole that allows the foreign investment cap to be obviated” as was “demonstrated by the restructure of Virgin Australia”.
The government “as a matter of urgency” should consult with industry and other relevant bodies to formulate terms of reference for a “comprehensive review of Australia’s aviation sector”, the committee said.
That review should include examination of the Open Skies policy and its impact on operators and consumers and should be undertaken by the productivity commission, the committee said.
It criticised Qantas as having “no clear and consistent policy in terms of its future direction” or at least not one “they are willing to discuss in the public sphere”.
“Legislative changes made by the government or other measures, including a debt guarantee, may not have the intended impact if there is not the ability or the will within Qantas to take advantage of them”.
The committee said Qantas had not stated a “strong position: on what specific changes it needed to recover, “other than insisting it is operating on an ‘unlevel playing-field’ compared to Virgin Australia”.
“It would perhaps be more useful and inspire greater confidence on the part of employees and consumers if Qantas were to have a clear strategic plan and a ‘wish list’ of actions for the government. This would demonstrate an engagement on the part of Qantas and assist the parliament in ensuring any action taken has the desired outcome.”
Committee member and Greens senator Lee Rhiannon accused the ALP of siding with Qantas via the committee.
“This inquiry was set up to investigate options available to the government to financially assist Qantas in the interests of protecting jobs and the national carrier,” Ms Rhiannon said.
“It’s clear Labor has caved to the pressure from Alan Joyce and senior Qantas management.
“They are willing to sell off the heart and lungs of the airline while trying to dud us into believing they want an Australian owned Qantas,” she said.
Surprisingly, for a MMSM publication, this article is not quite so pro-RedRat...
.
Also surprising is the fact that the reporter appears to have not quoted from the Laborial sections of the RRAT report but from Nick X's dissenting section, see
here (page 39-45).
(
Comment: Funny how aviation bi-bartisanship doesn't stretch to the big Q..
)
Nick's recommendations:
Recommendation 1
That the Government, as a matter of urgency, consult with industry and relevant bodies to formulate terms of reference for a comprehensive review of Australia’s aviation sector, including the Open Skies policy, and its impact on operators and consumers, to be undertaken by the Productivity Commission.
Recommendation 2
That the Government take no further action on legislative or other reform and provide no assistance or guarantee to Qantas until an independent audit of the company has been completed, which should also seek to establish the level of any cost-shifting between Jetstar and Qantas.
Recommendation 3
Subject to Recommendation 1, that the Air Navigation Act 1920 be amended to address the apparent loophole that allows the foreign investment cap to be obviated, as demonstrated in the restructure of Virgin Australia.
Maybe the penny has finally dropped, within the boffins in MMSM land and Laborial land, that in the comparatively small insular world of Oz aviation that all paths are intrinsically linked to the big Q...
I might add that the good Senator X would appear to have worked this out quite some time ago..
Nick X quote: “Jack Lang used to say ‘In politics, if you nurse a mug for long enough, he’s bound to die in your arms,’” Nick said. “It’s time for the Government to take a step back from Qantas and consider the bigger picture, or they’ll be the biggest mugs of all.”
TICK TOCK!
Addendum:
FNQ Wazza speaks out against Irish bomber bombing Q's Cairns Base..
Mr ENTSCH (Leichhardt) (10:22): I rise today to speak on behalf of the members of the Qantas crew base in Cairns, who received the shattering news four weeks ago that their base will be closed. One hundred and ten crew and their families were given just two weeks to decide whether they would relocate to another base, or resign and take a redundancy. Staff members have contacted me telling me how the closure would impact on them. One said—and this is typical of the comments:
As a family we love living in Cairns and we are not planning to relocate anywhere in the future. Qantas has forced us to uproot our lives, take our kids out of day care, forced my husband to leave his job, and made major changes regarding our financial stability.
We have been challenged and distressed by Qantas's decision. Our family enjoys living and working in Cairns. We share a sense of passion and engagement amongst the community and the diverse environment.
As locals on flights, we give great advice on what to see and do in Far North Queensland. We recommend locally owned operators and businesses. No other port in Australia has a crew so dedicated to promotion of their area.
Our outstanding commitment and performance has been overlooked by the upper echelon of corporate Qantas.
These comments are backed by the fact that Cairns consistently rates high in its customer service scores, as voted by the passengers, coming first in Australia in January, December and November. This is adding to Qantas's bottom line as a fantastic customer service. It has economy and value and encourages repeat and referral bookings.
I wrote to the CEO of Qantas, Alan Joyce, on 4 March and asked him to reconsider his decision, allowing the base to remain, with a reduction in staff size if absolutely necessary, or to phase out the base over an extended period of time, with a review in 12 months.
To date, unsurprisingly, I have received no response. Today I have learnt that some crew have accepted redundancies because they are unable to relocate to a major city. They finish on 4 May. Those crews that are in a position where they have to uproot and move to Brisbane, Sydney, Adelaide, Melbourne and Perth will be gone by 30 June. This is very disappointing news.
Consider that the Qantas board of directors had a choice of three people to take on the CEO. Their choice took a world-class, full-service airline and transformed it to a low-cost, no-frills carrier. On the other hand, one of the unsuccessful candidates moved to a low-cost, no-frills carrier and turned it into an outstanding full-service carrier. One ponders on who got the best deal: Qantas or Virgin. I would suggest many of Qantas's woes could be addressed if the board were to revisit that decision.
Qantas is a great airline with great staff and a great future. What it needs is a leader with comprehensive knowledge and the commitment to rebuilding and maintaining a full-service airline.
(Time expired)