Emirates Cans A380 Tasman Flights to Auckland

[Max123]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11931831

[ElZilcho]

The end of JetConnect?

QF mainline have already picked up the capacity with A330’s on SYD-AKL, assuming the same happens with BNE/MEL, how many sectors will remain on the 738’s and where’s the cost benefit of a subsidiary doing them? Not to mention, J* could pickup a few more.

Few friends at JC are rather nervous at the moment and eyeing up China before getting pushed.

[goodonyamate]

i wouldn't be too concerned just yet. Yes, two 737's are coming home but where are the crew to fly them? :confused:

Probably a different story in a few years. My understanding is, whilst the aircraft are utilised well, there is a real lack of flexibility with the airframes. Ideally, the aircraft should arrive from NZ and go somewhere domestically apparently.

[OzBob]

Fares could rise after Emirates cans A380 superjumbo flights from Auckland to Australia

Fares could rise after Emirates cans A380 superjumbo flights from Auckland to Australia - NZ Herald (http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11931831)

[Airbus A320321]

i wouldn't be too concerned just yet. Yes, two 737's are coming home but where are the crew to fly them? :confused:

Probably a different story in a few years. My understanding is, whilst the aircraft are utilised well, there is a real lack of flexibility with the airframes. Ideally, the aircraft should arrive from NZ and go somewhere domestically apparently.

Where did you hear 2 more 737's are going back to mainline? Internal memo?

[ElZilcho]

Where did you hear 2 more 737's are going back to mainline? Internal memo?
Not sure about "2 more" but 2 have been earmarked to return to QF for a few months now.

[dragon man]

What a joke this is, where’s the aircraft and crews to pick this up coming from? They are going to train Captains on the 747 now. It’s chaos on a day to day basis, the more they flog the crews the higher the sick leave and short notice resignations.

[Going Boeing]

M Rats is very short of pilots so they are cutting sectors wherever possible to get the best utilisation of their remaining crews. This is a fairly obvious decision, I'm just surprised that QF has the aircraft and crews to replace the trans Tasman capacity as Qants is short of both at present.

[maggot]

We don't...

[ElZilcho]

Perhaps in the short term, it's going to be a real struggle due to crewing. In the longer term however, more sectors should mean more jobs... more commands, possibly more Aircraft?

Probably worth 6-12 months of crappy rosters? Big picture and all.

[t_cas]

Perhaps in the short term, it's going to be a real struggle due to crewing. In the longer term however, more sectors should mean more jobs... more commands, possibly more Aircraft?

Probably worth 6-12 months of crappy rosters? Big picture and all.

Isn't there a thread running about some shortage of pilots?

Interesting to see this rather curious effect. EK short and QF being flogged..... not unique. That is a lot of seats to replace over the ditch.

[73qanda]

Rumour of the fix; QF mainline base in Auckland consisting of two 330's and nine 738's.
VH regos all around.

[Keg]

Probably worth 6-12 months of crappy rosters?

Training will be flat out at least until 787 #8 turns up in a December next year. Heaven help us if we bring any additional airframes into FY18/19.

Big picture and all.

Agreed. It's tough going at the moment buts it's a much nicer place to be than where we actually were just two years ago when the last of the demoted 767 crew were just checking out and the A380 F/Os were being RIN'd. What short sighted stupidity that turned out to be!

[maggot]

Short sighted? None are as blind as those who are unwilling to see (outside the plan, KPI segmentation and the spend money to save money restructuring)

[ElZilcho]

Yep never waste a crisis, even a fabricated one.

[dragon man]

Training will be flat out at least until 787 #8 turns up in a December next year. Heaven help us if we bring any additional airframes into FY18/19.

The additional airframes will be the 747 fleet remaining at 10 till late 2019 instead of 7 by late 2018.

[wheels_down]

Another thread taken over by whinging Quantarse pilots banging on about T&Cs and your precious little 787 that the majority of us couldn’t give two hoots about.. Whinge Whinge Whinge.... You lot are worse than my multiple ex wives mother-in-laws all put together!

Well don’t open the thread if you don’t want to read about QF.....No problem...Point Taken...Hold on a minute...I’m in a Emirates thread right?

[Iron Bar]

Nasty! :}

[C441]

I guess the fact that another airline is taking up the Emirates Tasman flying (apparently exclusively) mentioned in the title of this thread is an irrelevant point of discussion.

Fair enough. After all who remembers who lost (say) the AFL Grand Final. Why should we? Apparently only one team was playing if you read the headlines. :rolleyes: :)

[halas]

Adelaide? :}

halas

[Max123]

With Emirates leaving the Auckland routes is this good news for Air NZ? Surely they can compete with Qantas on cost.

[i_fly_planes]

Does anyone have any insight to what ramifications this may have on Jetconnect pilots in the long run?

Recall someone mentioned rumours of 2 aircraft heading to mainline fleet. If thats the case and hypothetically speaking all aircraft return to mainline over time what would happen to the pilots working there?

Cheers

[73qanda]

I would be surprised if QF didn't have a use for most of the Jetconnect 737 rated and current pilots. If they wrapped up JC and took the airframes home but not the pilots then instead of being 60 crews short on the 737 they would be 110 crews short.
If on the other hand they make the JC pilots mainline crew based in Auckland then the jets can do triangles through Syd Mel and BNE. The jet utilisation would be improved and the pilots would be able to fly the domestic sectors so could do more than they currently can ( 900 rather than 700hours).

[i_fly_planes]

I guess being absorbed by mainline would benefit the pilots in regards to pay scales to?

Thanks for the response too.

[smiling monkey]

I would be surprised if QF didn't have a use for most of the Jetconnect 737 rated and current pilots. If they wrapped up JC and took the airframes home but not the pilots then instead of being 60 crews short on the 737 they would be 110 crews short.


If this did happen, would their pilots automatically flow to mainline, or would they need to go through the interview process like other Qantas group pilots did?

[goodonyamate]

They would have to go through the recruitment process.

The only way they would continue to operate the 737 is on a temporary basis until current mainline crew were trained. The J C crew would be issued a seniority # at the bottom when they joined, and once a current mainline pilot was trained in seniority they would drop back to SO.

Can’t see it in the short term though. If they did elect to have a NZ base for mainline, which I also can’t see happening, it would be open to all mainline crew to bid for, meaning the JC crew could still end up as SO’s in Australia.

Hopefully for all th operators, the reduction in seats will allow prices to get where they should be!

[engine out]

I reckon JC to be wound up. JC pilots to be put on short term contracts to continue operating 737 on mainline conditions for a period of 1-2 years. This then allows them to operate domestic sectors when they arrive in Australia. They will be given a seniority number and when they finish contract they will be able to interview to stay at Qantas and be given a position there seniority allows.

Qantas has already had discussions about this with AIPA.

[Oakape]

Excuse my ignorance, but how does the withdrawal of the EK A380's & the replacement of them with QF A330's & more frequencies with B738's have a negative impact on Jetconnect?

[framer]

That depends on what you think is negative. There is potential to get extra hours out of both the jets and the pilots by having both jets and pilots be able to depart Auckland or Wellington at 0400 Australian time, arrive in Yssy or Mel or bne at 0730, fly a domestic sector and then cross the Tasman again. The problem is to achieve those efficiencies the pilots have to be able to operate a domestic sector, the negative part could be in solving that problem.

[ElZilcho]

Excuse my ignorance, but how does the withdrawal of the EK A380's & the replacement of them with QF A330's & more frequencies with B738's have a negative impact on Jetconnect?

Without EK, QF have lost their Widebody "Premium" product on the Tasman. While the Business offerings in a 737 beats economy, Air NZ are still operating multiple 777/787's daily on the Tasman. If QF don't provide a suitable alternative, they risk losing a lot of Premium passenger to the competition. (Which is fine, we don't mind taking them :ok:)

Then of course there's Capacity, at peak times, it makes a lore more sense to fill up a widebody, utilizing one crew and one frame rather than a convey of 737's leaving within 20 minutes of each other. For this reason, the increase in 738 flying is potentially a short term stop gap until more A330's can be found/crewed. Perhaps the arrival of the 787 will free up some A330's? I'm not familiar with the QF network.

Now, who would operate these Widebody A/C? I can't see QF putting any Heavies on ZK Rego purely for Tasman flying, and that's what has a few people worried.

[Oakape]

Yeah, but there is supposed to be an increase in B738 frequencies to cover the shortfall in seats, along with some A330 services. Even if the extra B738 services were done by Oz crew in VH tails, there would still be no detriment to the flying that Jetconnect currently does. The only possible negative impact may be in the future, if the QF group loses business to ANZ, with it's widebody services & the total number of QF group seats each day decreases.

[ElZilcho]

Yeah, but there is supposed to be an increase in B738 frequencies to cover the shortfall in seats, along with some A330 services. Even if the extra B738 services were done by Oz crew in VH tails, there would still be no detriment to the flying that Jetconnect currently does. The only possible negative impact may be in the future, if the QF group loses business to ANZ, with it's widebody services & the total number of QF group seats each day decreases.
Yea apologies, I edited my previous post for clarity around the extra 738 frequency. I was led to believe it's only temporary to cover the shortfall while QF shuffle the deck chairs, so to speak.

[SandyPalms]

There is a rumour that JC will be shut down. The pilots brought over as contractors in their rank, for a fixed period. After which they will apply to QF etc....... the same set up as the Ansett 737 (767?) pilots deal in 01/02.
AKL base seems very unlikely, but stranger things have happened.

Only rumours, but it been done before.

[NGsim]

An AKL base is really needed due to
Tasman timings.
But that said I can see major changes for JC upcoming. Why not have the crew operating VH aircraft on a lower NZ based contract the same as Virgin and JQ to save on compliance of a seperate AOC. Obviously AIPA would need to approve that

[goodonyamate]

There is a rumour that JC will be shut down. The pilots brought over as contractors in their rank, for a fixed period. After which they will apply to QF etc....... the same set up as the Ansett 737 (767?) pilots deal in 01/02.
AKL base seems very unlikely, but stranger things have happened.

Only rumours, but it been done before.

It would depend on how long the 'fixed term' was for. If QF want to move the frames back, they will do it, without considering the welfare of JC crew. Just look at their history. I can't see any mainline pilot accepting anything longer than that. From talking to AIPA reps, anything like this would have to be negotiated. Its the pilots that own seniority, not QF, and with the intricacies in the SH/LH award/seniority etc there would have to be some form of agreement. Nothing personal against JC crew, if you're good enough to fly a ZK QF 737, then you should be given a straight path to mainline (as should QLink/JQ etc etc) without jumping through the bull**** HR hoops. But with the 'lost decade' at QF, many of us are keen to see our careers progress, and any arrangement like this would need to be watertight as to not detrimentally effect mainline pilot careers (again)

300,000 seats is a lot of lost capacity. I thought with the initial QF/EK deal, the trans tasman market was one which the ACCC stipulated that capacity needed to be maintained?

[maggot]

An AKL base is really needed due to
Tasman timings.
But that said I can see major changes for JC upcoming. Why not have the crew operating VH aircraft on a lower NZ based contract the same as Virgin and JQ to save on compliance of a seperate AOC. Obviously AIPA would need to approve that

Why not?
Cause it's our ******* livelihood that's why

[Keg]

What this sounds like is that with more widebody flying on the Tasman there is less and less flying for JC crew. Thus the rumoured solution for them fly domestically seems more about keeping them working efficiently. The secondary benefit of assisting with shortages of mainline 737 crew is great in the short term but you can perhaps forgive mainline crew for being a bit cagey given how the Jetconnect operation has contributed to the adverse impact on mainline careers over the last decade plus.

[crosscutter]

There would be plenty of takers for a mainline 737 AKL base. New hires I've spoken to are happy to be heading to Perth so it's disingenuous to think AKL would be considered significantly different.

Moreover, if JC domestic flying requires both CASA and AIPA approval (I don't know), can you imagine the uproar should it be granted. AIPA might die along with the 4 engined beasts.

Might be time to start prepping for a Mainline gig before the next crises hits...or maybe that's what JC needs.

[Eaglet]

Any chance J C could convert to a widebody fleet 787/330? Doing trans-tasmans then continuing onto an Asian destination as part of a trip.

[Traffic_Is_Er_Was]

So the punter moves from the back of a major international airline's premier widebody to the back of an essentially domestic narrow body. That seems like a good deal and a win for everyone (the transit passengers through BNE will luuurrve it) :yuk:

[busdriver007]

What this sounds like is that with more widebody flying on the Tasman there is less and less flying for JC crew. Thus the rumoured solution for them fly domestically seems more about keeping them working efficiently. The secondary benefit of assisting with shortages of mainline 737 crew is great in the short term but you can perhaps forgive mainline crew for being a bit cagey given how the Jetconnect operation has contributed to the adverse impact on mainline careers over the last decade plus.

Slight problem is that one Domestic sector activates the FairWork Act and implies they must be paid as Australian Pilots under the Short Haul Award. The Company has outsmarted itself! What do they want efficiency or a Lower Cost base? You can't have both!

[Keg]

I think the lower cost base is secondary these days to simply crewing services. We are cancelling services on an almost daily basis due to lack of 737 (and A330) crew. In the meantime we look like reducing the amount of flying that needs to be flown by Jetconnect.

How does QF solve that problem in the short term? I suspect the lever they'll pull will be to use those JC crew domestically even if it means having to pay them more. It solves a bigger problem and means the training load can abate somewhat from 'manic' to 'simply chaotic'.

I don't like it and I don't agree with it but I reckon it'll happen. This has been a slow moving train wreck that was foreseeable from well before the demotion of 42 767 Captains, 60+ 767 F/Os and the RIN of various A380 F/Os to the A330 just two years ago.

[Keg]

Any chance J C could convert to a widebody fleet 787/330? Doing trans-tasmans then continuing onto an Asian destination as part of a trip.

No. Not a hope in Hades.

[dragon man]

I think the lower cost base is secondary these days to simply crewing services. We are cancelling services on an almost daily basis due to lack of 737 (and A330) crew. In the meantime we look like reducing the amount of flying that needs to be flown by Jetconnect.

How does QF solve that problem in the short term? I suspect the lever they'll pull will be to use those JC crew domestically even if it means having to pay them more. It solves a bigger problem and means the training load can abate somewhat from 'manic' to 'simply chaotic'.

I don't like it and I don't agree with it but I reckon it'll happen. This has been a slow moving train wreck that was foreseeable from well before the demotion of 42 767 Captains, 60+ 767 F/Os and the RIN of various A380 F/Os to the A330 just two years ago.

👍👍👍👍👏👏👏👏👏👏

The problem is there is no accountability, no heads will roll. It will be a train wreck for the next few years if not longer. The lunatics are well and truly in charge of the asylum.

[maggot]

👍👍👍👍👏👏👏👏👏👏

The problem is there is no accountability, no heads will roll. It will be a train wreck for the next few years if not longer. The lunatics are well and truly in charge of the asylum.

Accountability?

For what? They think it went perfectly lol

[PoppaJo]

Is AKL a engineering base for EK? One would assume with four supers in daily they would have a significant amount of resources over there, obviously not for much longer.

[haughtney1]

Is AKL a engineering base for EK? One would assume with four supers in daily they would have a significant amount of resources over there, obviously not for much longer.

What do you mean? Superdoopers never break...it's an Aeerboos, nuffin eva goes wrong.

[busdriver007]

I think the lower cost base is secondary these days to simply crewing services. We are cancelling services on an almost daily basis due to lack of 737 (and A330) crew. In the meantime we look like reducing the amount of flying that needs to be flown by Jetconnect.

How does QF solve that problem in the short term? I suspect the lever they'll pull will be to use those JC crew domestically even if it means having to pay them more. It solves a bigger problem and means the training load can abate somewhat from 'manic' to 'simply chaotic'.

I don't like it and I don't agree with it but I reckon it'll happen. This has been a slow moving train wreck that was foreseeable from well before the demotion of 42 767 Captains, 60+ 767 F/Os and the RIN of various A380 F/Os to the A330 just two years ago.

It is just a matter of convincing the IR department that their Jetconnect "win" in 2011 will be undone by what you are suggesting and the fact that Qantas has just employed a floor of Freehill people to replace Sue Bussell means their antagonistic approach to IR is not about to change anytime soon.

[Hold_Short]

The guys and gals over the ditch working for Disconnect (Jetconnect for the hard humoured) are trying desperately to tackle a new more attractive contract since April 2016. The company has done their utmost best to squash any sort of reasonable negotiations for the new contract. Delayed meetings, walking out of meetings, cancelling meetings last minute all to prolong the process. They have created a work environment which is so poor and disconnected nearly all pilots are moving on at the earliest convenience.

Who ever has seen, worked for or even considered working for this company has been quick to realise that the company is far beneath even the low cost operator running along side them in New Zealand. They have had to hire direct entry Captains for the first time because none of the FOs have the time on type to upgrade because those getting anywhere near have left for other operators. They are also wanting to drive down even further new entry FOs on only 60k under the new proposal in the contract. What a joke considering their Qantas counterparts are laughing at them across the ditch. They will shortly get a rude shock when the pilots depart the operation once again and there are no others coming along to accept such a poor a working contract.

[Steve Zissou]

An accurate post Hold Short. There seems to be a lot of rumours in this thread of JC being shut down. Haven't these rumours been around since JC first started? Admittedly though getting down to a fleet of 6 aircraft is starting to push the whole economies of scale with what is becoming a pretty small operation with a stand alone AOC, separate management etc.

It is hard to believe JC management aren't prepared to budge (with small exceptions) on the contract negotiations though in such a buoyant pilot market. Sounds like a few guys have had enough and are talking with their feet.

[engine out]

I would imagine JC management is controlled by QF management who pay the bills and will get what they want.

[ElZilcho]

I would imagine JC management is controlled by QF management who pay the bills and will get what they want.
I'm sure some of it is QF Management, but if there's any truth to what I've heard out of JC, a lot of stems from their own management...

[Rated De]

I would imagine JC management is controlled by QF management who pay the bills and will get what they want. As CEO of Disconnect Mr Paul Daff stated in in testimony to Fair Work Australia,

SC MOSES:So there's a letter of retainer between Jetconnect and that (law) firm?


CEO DAFF: 'I wouldn't say there's a letter of retainer, but we paid the bills. The bills came and we paid them.'


MOSES: Who paid the bills?


DAFF: We process the bills in our office and they get paid ultimately by Qantas.


MOSES: Qantas pay the bills?


DAFF: Well, Qantas pays all our bills, yes




He was as you said Mr Joyce; 'having a bad day'


Disconnect (I like that) commenced operations from the Ashes of Ansett New Zealand. It started as a labour hire company, reflected in the financial statements.


It quickly morphed into:


'The operation and management of aircraft to fulfill a schedule of trans Tasman commercial passenger flights.'




It is just a matter of convincing the IR department that their Jetconnect "win" in 2011 will be undone by what you are suggesting and the fact that Qantas has just employed a floor of Freehill people to replace Sue Bussell means their antagonistic approach to IR is not about to change anytime soonThat is a succinct statement, whilst it makes no commercial sense and as an 'airline' has few assets and not even a fuel bill, IR/HR will ensure that no expense is spared to save labour unit cost, whether it makes economic sense or not..

[Sykes]

Hold_Short

is on it!

The pay is bad, and the work is relentless. They can't get enough crew. The FO's they recruit are only there to get enough 737 time so that they can go somewhere else, and not hanging around for an upgrade.

The pay over there is similar to what a Q400 pilot earns in Australia; some FO's worked out they're financially better off on the Q400 in SYD instead of being a 737 FO in AKL.

JC comes under "Associated Airlines and Services" which includes all the smaller bits of the group, such as Network, Eastern/Sunstate, JC, and the governance of Cobham 717's.

All managed by Teflon John. Anyone who's seen an EA negotiated with him at the helm knows that he's like. He's more than happy to negotiate conditions that ensures people leave. He can blame the future pilot exodus on other factors and get away with it. He was responsible for two major decisions in the past three years that has left Eastern/Sunstate reeling; yet he's still there.

JC management are probably happy with the return of two airframes: means they can crew the remaining ones easier. Kind of like when Qantas announced that "due to customer demand" the CNS-POM Q400 flights would be replaced by a BNE-POM 737. Absolutely NOTHING to do with the fact that 40% of the Cairns base had resigned and they couldn't crew the flights anymore.

[moa999]

I'm struggling to see why people think that QF would want to transition staff away from JetConnect with its cheaper labour rates and ideal position for greater aircraft utilisation

[Hold_Short]

In my own opinion, I would think they would increase the work force even more over at Jetconnect as all employees there get paid roughly 35% less than their Aussie counterparts. To the travelling public, they see the Qantas tail, the Qantas uniform and an english speaking crew, so they assume everyone on the 'good old' Qantas contracts all round. Little do they know that all employees over the ditch are only there for a short time not a long time.

I find it quite odd that this type of business even exists in the first place from a political perspective. How the Australian Government allows this type of shonky overseas operation to portray a fake image of 'Australian' service is beyond my understanding. How does the Australian workers union allow this to happen makes me question the fact that if its okay to do it now, why don't they continue to expand the operation if it is so cost effective?

As per Sykes comments, god only knows why people would move over there to take up a job that is so underpaid its quite hilarious. The cabin crew and pilots contracts are even below that of their 'low cost' operator Jetstar, yet they operate a full service brand. One example is, that Jetstar turboprop pilots get 'guaranteed' Business class duty travel over Jetconnect pilot duty travel. They are left stuck in economy on the aircraft they operate. I call that a copout! :}:}

I have a few mates who work there now and I had considered going there for 'experience' however, listening to the talk within the crew, I'll stick to my job here. The type of managers there are the laughing stock of the bunch, they are do nothing more than drive down the moral within the group. Its a shame because it could be a great division of the Qantas group but from my perspective its on the lowest of rungs for a premium airline, or so to speak.

These two gents have interviews elsewhere and they say there are countless others who are going shortly too. Let hope their pilots call the shots and stop putting up with such a backwards set of managers and start getting some progress with their negotiations. :eek:

[Metro man]

Does this mean EK flights to Auckland will now be non stop from Dubai with the A380 or B777 ?

Will the EK, DXB - SIN - BNE - AKL route now terminate in BNE or miss it out ?

[neville_nobody]

Well if the Pilot shortage is real, and JC conditions so bad, then JC will start having crewing problems. If people keep turning up then it will continue.

[Going Boeing]

I'm struggling to see why people think that QF would want to transition staff away from JetConnect with its cheaper labour rates and ideal position for greater aircraft utilisation

Moa999, you are right that, geographically, crews based in NZ can have far more efficient patterns than Aus based crews and, coupled with the significantly lower wages, you would expect it to be the best option. Unfortunately, the cost of the Jet Connect operation is higher per sector than equivalent sectors in Australia and has been of concern for a few years. I don't know where the cost problem is, but it may be due to the high turnover of staff as well as the lack of "economy of scale". I don't think that JC will be closed down but there is definitely pressure to drive down the costs.

[ElZilcho]

Moa999, you are right that, geographically, crews based in NZ can have far more efficient patterns than Aus based crews and, coupled with the significantly lower wages, you would expect it to be the best option. Unfortunately, the cost of the Jet Connect operation is higher per sector than equivalent sectors in Australia and has been of concern for a few years. I don't know where the cost problem is, but it may be due to the high turnover of staff as well as the lack of "economy of scale". I don't think that JC will be closed down but there is definitely pressure to drive down the costs.
A 737-800 burns the same amount fuel per hour, requires the same maintenance and the same spare parts regardless of what rego' son the tail.

Jetconnect's cost savings is mostly Labour, with some added benefit of being Auckland based. No doubt they also stay in cheaper hotels than mainline?

Out of those reduced costs, they have to pay for a separate AOC, separate training department, multiple layers of management and operations, while having a higher turnover of staff increasing training costs.

How much is driven by Labour costs and how much is an industrial threat to keep mainline pilots in check?

[reubee]

A 737-800 burns the same amount fuel per hour, requires the same maintenance and the same spare parts regardless of what rego' son the tail.

Jetconnect's cost savings is mostly Labour, with some added benefit of being Auckland based. No doubt they also stay in cheaper hotels than mainline?

Out of those reduced costs, they have to pay for a separate AOC, separate training department, multiple layers of management and operations, while having a higher turnover of staff increasing training costs.

How much is driven by Labour costs and how much is an industrial threat to keep mainline pilots in check?

the economys of scale argument would be helped if Jetstars NZ and TT overheads also fell under JetConnect

[Rated De]

How much is driven by Labour costs and how much is an industrial threat to keep mainline pilots in check? JUSTICE BOULTON: Sorry, what's the sequence? Qantas pays Jetconnect and then Jetconnect pays the staff, or is it Qantas?
DAFF No.

BOLTON Who pays the staff
DAFF Qantas effectively

● BOLTON on behalf of Jetconnect?
DAFF Correct, yes.


All expenses met by Qantas, control held by Qantas, payment of staff by Qantas. Rolled into the Consolidated accounts at the whim of management...With no fuel bill, Amazing!

The magic eight ball suspects there is a sole motive for its continuance and it isn't economic!

[CurtainTwitcher]

Jetconnect Limited and And Controlled Entities Financial Statement 2003 (https://app.companiesoffice.govt.nz/companies/app/service/services/documents/5FDF44D4F3832096B96346B7AB91DA64)
Note 10: Investment in Controlled Entity
During the year, Qantas Investments (NZ) Limited was incorporated and issued 100% of its share capital to Jeconnect Limited for $2. The principle activities of Qantas Investments (NZ) Limited is to hold a loan note which is convertible to a 4.99% stake in Air New Zealand Limited

Note 11: External Investment
On 31 December 2002, the Jetconnect Group acquired a loan note which is convertible to a 4.99 percent stake in Air New Zealand Limited for $98.2 million. The Share price at June 30 2003 was $0.54, which is above the purchase price paid.


Jetconnect held the investment stake in Air New Zealand taken in 2003. That stake was sold in 2007, leaving it with assets of approx NZ$176 million (2007 financial Statement (http://www.societies.govt.nz/scanned-images/13/BC10055255713.pdf)).

It's latest financial statement (2016 (https://app.companiesoffice.govt.nz/companies/app/service/services/documents/1CA36235CEA2AF67EB66A0F3187AFFD5)) shows assets of only NZ$21 million.

One line of thought is that the continued reason Jetconnect continued to exist was to burn out the capital gain on the 4.99% ANZ stake, thus avoiding repatriating the profit attracting a tax liability. Now that the assets have diminished sufficiently, the reason for its continuation has ceased. Job done. But that is just speculation.

Jetconnect Documents including financial statements (https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/1143116/documents?backurl=%2Fcompanies%2Fapp%2Fui%2Fpages%2Fcompanie s%2Fsearch%3Fmode%3Dstandard%26type%3Dentities%26q%3Djetconn ect)

[Rated De]

Raison d' etre was tax and financial gain

One line of thought is that the continued reason Jetconnect continued to exist was to burn out the capital gain on the 4.99% ANZ stake, thus avoiding repatriating the profit attracting a tax liability. Now that the assets have diminished sufficiently, the reason for its continuation has ceased. Job done. But that is just speculation.
With a structure not resembling an airline, repatriating funds would attract taxation under the Australian taxation umbrella.

The auditor's opinion was verrry interesting!