Wirraway
27th Jul 2004, 08:37
news.com.au
Airline rage: Business travel at risk after shake-up
By DANNY ROSE
July 27, 2004
TASMANIA'S commuting business executives could be forced to leave the state because of the discount airline shake-up.
Labelled the state's "knowledge workers", there are about 200 of the wealthy elite spread across the island and they earn up to $30 million a year combined.
The businessmen and women, who own or hold down senior positions with companies usually in Melbourne or Sydney, have been caught out by the emergence of discount airline travel.
One such Tasmanian is Hobart-based consultant Gerard Castles, who flies interstate on business 40 weeks of the year.
Mr Castles said yesterday Tasmania risked seeing many of his peers move interstate because they could not afford to be cut off from their jobs.
The warning comes as the State Government and executives from discount carrier Jetstar meet for talks in Launceston today.
"Business travellers are finding a major hurdle has been placed in front of them," said Mr Castles, 43, of Mt Stuart.
"One this week told me he's seriously looking at moving back to Sydney.
"There are a lot of what are called `knowledge workers' here and they pull a lot of income into Tasmania.
"It's not an obvious industry but it's worth about $30 million and it is being put at serious risk."
Mr Castles said the group remained angry at being disadvantaged by the airline shake-up, which has seen Qantas slash flights into Tasmania that include business class and other seats that accrue frequent flyer points.
The void has been filled with flights on the discount airlines, Qantas subsidiary Jetstar and its bitter Virgin Blue, but they fly at times and offer a service not geared towards the business traveller.
Mr Castles also pointed to Jetstar's recent cancellation of 15 flights from July 21 to the end of this month, and said the business travellers he knew had little faith in the service.
"I arrived 45 minutes early for a Jetstar flight and I still almost missed it due to being stuck in a slow queue," he said.
"There is actually no guarantee that if you book a flight you'll get on it.
"We need a service where business travel is easy, right now it is relatively hard."
Legislative Council president Don Wing backed the call for improved services yesterday.
Mr Wing said federal funding was required to underpin a guaranteed level of air services to Tasmania, like the Commonwealth's Bass Strait Passenger Vehicle Equalisation Scheme.
"We get it for sea which we appreciate but it covers just 20 per cent of people who cross Bass Strait," he said.
"The Federal Government doesn't fund just 20 per cent of the road and rail that crosses other state borders.
"We have a strong case."
Meanwhile, Tourism Minister Ken Bacon was talking tough yesterday ahead of today's meeting with Jetstar chief executive Allan Joyce.
They will meet at an independent tourism operators' conference in Launceston, and Jetstar's controversial move to cancel the 15 Hobart-bound flights will be on the agenda.
"We've been assured the flights will be restored from August 1," Mr Bacon said.
"But I'll be making the point that advertised schedules are there for a reason. The disruption can't be dismissed lightly."
Mr Bacon also said he was disappointed at a lack of consultation over the move surrounding Hobart, and said there were ongoing concerns with Jetstar's schedule into Launceston.
Before Jetstar's midwinter cut in flights, Tasmania's flight capacity was put at 52,664 seats across the Jetstar, Virgin Blue, Qantas and Rex air services.
This was 24 per cent up on the same figure in the first week of July last year, according to State Government figures.
Opposition Leader Rene Hidding welcomed today's talks, saying air links were of critical importance to the economy.
But he also criticised the State Government for "sending in the junior minister" in Mr Bacon.
"[Premier] Paul Lennon should be at the meeting to make as strong a case as possible to Jetstar that the Tasmanian community will not take lightly cuts to services without any consultation given our special circumstances as an island state," Mr Hidding said.
Virgin Blue said yesterday it had no intention of matching Jetstar's cut in flights.
Spokesman David Huttner said: "At this point, we're pretty happy with the schedule as it is loaded today.
"As long as people in Tasmania keep supporting us we will support the people in Tasmania."
Qantas responded late yesterday that it still offered 330 business class seats in and out of Tasmania per week.
No comment could be obtained from Jetstar.
The Mercury
========================================
Airline rage: Business travel at risk after shake-up
By DANNY ROSE
July 27, 2004
TASMANIA'S commuting business executives could be forced to leave the state because of the discount airline shake-up.
Labelled the state's "knowledge workers", there are about 200 of the wealthy elite spread across the island and they earn up to $30 million a year combined.
The businessmen and women, who own or hold down senior positions with companies usually in Melbourne or Sydney, have been caught out by the emergence of discount airline travel.
One such Tasmanian is Hobart-based consultant Gerard Castles, who flies interstate on business 40 weeks of the year.
Mr Castles said yesterday Tasmania risked seeing many of his peers move interstate because they could not afford to be cut off from their jobs.
The warning comes as the State Government and executives from discount carrier Jetstar meet for talks in Launceston today.
"Business travellers are finding a major hurdle has been placed in front of them," said Mr Castles, 43, of Mt Stuart.
"One this week told me he's seriously looking at moving back to Sydney.
"There are a lot of what are called `knowledge workers' here and they pull a lot of income into Tasmania.
"It's not an obvious industry but it's worth about $30 million and it is being put at serious risk."
Mr Castles said the group remained angry at being disadvantaged by the airline shake-up, which has seen Qantas slash flights into Tasmania that include business class and other seats that accrue frequent flyer points.
The void has been filled with flights on the discount airlines, Qantas subsidiary Jetstar and its bitter Virgin Blue, but they fly at times and offer a service not geared towards the business traveller.
Mr Castles also pointed to Jetstar's recent cancellation of 15 flights from July 21 to the end of this month, and said the business travellers he knew had little faith in the service.
"I arrived 45 minutes early for a Jetstar flight and I still almost missed it due to being stuck in a slow queue," he said.
"There is actually no guarantee that if you book a flight you'll get on it.
"We need a service where business travel is easy, right now it is relatively hard."
Legislative Council president Don Wing backed the call for improved services yesterday.
Mr Wing said federal funding was required to underpin a guaranteed level of air services to Tasmania, like the Commonwealth's Bass Strait Passenger Vehicle Equalisation Scheme.
"We get it for sea which we appreciate but it covers just 20 per cent of people who cross Bass Strait," he said.
"The Federal Government doesn't fund just 20 per cent of the road and rail that crosses other state borders.
"We have a strong case."
Meanwhile, Tourism Minister Ken Bacon was talking tough yesterday ahead of today's meeting with Jetstar chief executive Allan Joyce.
They will meet at an independent tourism operators' conference in Launceston, and Jetstar's controversial move to cancel the 15 Hobart-bound flights will be on the agenda.
"We've been assured the flights will be restored from August 1," Mr Bacon said.
"But I'll be making the point that advertised schedules are there for a reason. The disruption can't be dismissed lightly."
Mr Bacon also said he was disappointed at a lack of consultation over the move surrounding Hobart, and said there were ongoing concerns with Jetstar's schedule into Launceston.
Before Jetstar's midwinter cut in flights, Tasmania's flight capacity was put at 52,664 seats across the Jetstar, Virgin Blue, Qantas and Rex air services.
This was 24 per cent up on the same figure in the first week of July last year, according to State Government figures.
Opposition Leader Rene Hidding welcomed today's talks, saying air links were of critical importance to the economy.
But he also criticised the State Government for "sending in the junior minister" in Mr Bacon.
"[Premier] Paul Lennon should be at the meeting to make as strong a case as possible to Jetstar that the Tasmanian community will not take lightly cuts to services without any consultation given our special circumstances as an island state," Mr Hidding said.
Virgin Blue said yesterday it had no intention of matching Jetstar's cut in flights.
Spokesman David Huttner said: "At this point, we're pretty happy with the schedule as it is loaded today.
"As long as people in Tasmania keep supporting us we will support the people in Tasmania."
Qantas responded late yesterday that it still offered 330 business class seats in and out of Tasmania per week.
No comment could be obtained from Jetstar.
The Mercury
========================================