Qantas sets up base in Wellington

[Wirraway]

NZ "Dominion Post"

Qantas sets up base in capital
13 August 2003
By MATHEW LOH HO-SANG

Qantas is taking advantage of lower labour costs to set up in Wellington.

Jetconnect (the business name for Qantas' New Zealand operations) general manager Grant Lilly confirmed yesterday that 80 crew would be based in Wellington.

The newly recruited flight attendants and pilots would start serving the trans-Tasman market, flying between Wellington and Brisbane, Sydney and Melbourne, from September 1.

"Jetconnect is Qantas' New Zealand domestic service with five 737s, but from September 1 we will add two more 737s and take over Qantas' trans-Tasman services out of Wellington," Mr Lilly said.

But the Flight Attendants' Union is unhappy that Wellington-based crew will be paid less than Australian-based staff doing the same work.

To save money and provide a Wellington base for Qantas, Jetconnect has recruited 41 cabin crew and 15 pilots, who will live in Wellington. This will increase to 60 cabin crew and 20 pilots by November.

Mr Lilly said the move would save money, but consumers would not benefit from immediate cuts to fares. "It's all about economics and we can deliver the product from a cheaper cost base from Wellington," he said. "And while we won't be cutting fares, we are focusing intently on getting into fighting shape so we can deliver competitive benefits in the long-term."

The flight attendants would be paid New Zealand market rates, which meant they would earn less than their counterparts in Australia.

"They do get significantly less, but that's the market rate and is just a reflection of a more competitive, lower cost employment environment."

Mr Lilly declined to detail the pay of Wellington-based flight attendants, but sources said they were being offered about $27,000.

Union spokesman Billy Boreham said Jetconnect were not paying market rates. The Wellington recruits were getting less than half the take-home pay of their Australian counterparts.

"That's not market rates."

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[Next Generation]

They will save even more by only requiring a maximum of 3 Flight Attendants per aircraft !

[Kaptin M]

But does anyone seriously doubt that they'll have any trouble filling the positions?
The applications will be over-subscribed - guaranteed.

I wonder what position Mr Grant Lilly held, prior to becoming GM of Jetconnect, and whether he took a pay decrease - bet the answer's a big "NO"!
This operation, which "won't be cutting fares", could quite conceivably have been crewed by QF pilots, F/A's, etc, using EXISTING infrastructure, without going to the expense of setting up an entirely new company.
But that would NOT have allowed for the creation of so many more "management" positions with the associated mega-salaries, bonuses, and other benefits that bleed airlines.
These are the REAL beneficiaries, and the REAL reasons for setting up these offshoots.
The water lillies of airlines. How apt that this is in fact this GM's name!

[The Enema Bandit]

How much do the Jet Connect pilots get paid? I bet they don't get staff travel benefits. What about supernnuation and sick leave, do they get that?

[hoss]

I think Mr. Grant Lilly was involved in Airlink,NJS. Can anyone confirm?

[ditzyboy]

Biscuit-
You'd better believe it!

[Blue Ruin]

I think New Zealand regs allow 1 Flight Attendant per 50 pax.

[Kaptin M]

That's the minimum number, Blue Ruin - we (in Japland) also use that number. They were also working on 20 minute turnarounds here, but with a high pax numbers, it just wasn't workable.

The cabin crew here also do the cabin clean-up on through and turnaround flights, but after ferrying about 90 or more pax who carry their own refreshments onboard and leave the debris strewn everywhere, the ground engineers and traffic staff are usually almost always involved in the cleaning to try to get out on sched, in 30 minute breaks between sectors!

Additionally, there is only a "candy on request" service for flights less than 1 hour - flights over 1 hour are drink (tea, coffee, juice) only, but when the seat belt sign is on for extended periods and with pax numbers 100+, this becomes almost impossible to achieve for 3 F/A's.
And WHY should they go the extra?
They're being paid sh!t (and treated like it).

We're starting to see about a 40% attrition rate by the time they've been in a bit over 3 years - leaving for better paid jobs, some with other airlines, some in media, etc.
But "management" don't seem to care - training is only a few (about 5) weeks, and there are plenty more pretty young things who had always dreamed of "being an air hostess".

This job sure cures them of that in short time!

The lack of exposure is highlighted at the annual emergency revals.
Lucky the SLF don't get to see some of the performances (or lack thereof), and it makes you wonder what would happen in a real emergency. :(

[Sqwark2000]

Where are these 15 pilots coming from?

I take it they are additional to the crew currently employed for the 5 exisiting aircraft, so where are they coming from?

I hope that a NZ company would hire NZ'ers before looking overseas even though it is a Qantas/Oz outfit in disguise.

Anyone?

S2K

[Anti Skid On]

Sqwark2000 there was talk of them coming from Origin Pacific on that thread.

[kavu]

I hear that an ex Op's Manager from Eagle is now finishing up his training with Jet Connect.

[The Enema Bandit]

So how much are they paying??

[Pigs Arse]

Capts get paid about $90000 nz F/O's a lot less. No super, 4 weeks leave. Sick leave not sure about. But thats just what I've heard.

[Anti Skid On]

From www.pilot.staffcv.com (sorry can't post it directly as a link as it'll be on my login!)

Crew Base

Jetconnect crew are currently based in Auckland and Wellington. However they are required to overnight at other ports due to rostering requirements.

It is a condition of employment that successful applicants are willing to relocate to Auckland or Wellington.

Destinations

Auckland, Wellington, Christchurch, Queenstown, Sydney, Melbourne and Brisbane.

Fleet

Current fleet of 7 x 737-300.

Flight Crew Remuneration (Provided as a General Guide Only): -

Pilots are paid an annual salary of: -

1) First Officers:

NZ$55,000 (First Officer with less than 500 Flight Hours on a B737-300 or higher), or
NZ$66,000 plus a NZ$9,000 Retention Supplement (First Officer with 500 Flight Hours or more on a B737-300 or higher).
2) Captains:

NZ$110,000 plus a NZ$15,000 Retention Supplement.
Note: - The Pilot Retention Supplement is designed as an enhancement to a pilots remuneration package to incentivise pilots to remain employed by Jetconnect. Eligibility for payments under the Pilot Retention Supplement will arise after each Anniversary Year is complete.


Allowances: -

In addition the telephone and dry cleaning allowances all Flight Crew also receive a Daily Travelling Allowance (DTA) of NZ$3.20 per hour or part thereof from sign on to sign off whilst away from home base.

The information provided above has been supplied so as to provide some general guidance to those interested in the remuneration offered by Jetconnect Limited. The details specified above are in no way binding on Jetconnect Limited for any future employees.

I think the last line is of interest - last in - don't expect the same as other guys - we reserve the right to pay less than the market rate.

[Wirraway]

Fri "The Australian"

Kiwi fare game for our fliers
By Steve Creedy
August 15, 2003

AIR NEW Zealand's website is running hot as Australians looking to take advantage of trans-Tasman fare cuts of up to 36 per cent book flights at up to seven times previous record levels.

The Kiwi carrier this week unveiled everyday low-cost fares to New Zealand starting from $243 one-way as part of a pared back "Tasman Express" service.

It expects the move to boost its traffic across the Tasman by 10 per cent over the next year.

"Our internet bookings on the first day increased sixfold over the previous highest level, and on day two they climbed to a sevenfold increase, as passengers and travel agents embraced online bookings," said Air NZ vice-president Australia Paul Donovan.

"The Tasman is an extremely competitive market, and for Air New Zealand an extremely important market.

"We see the strong and very positive response to Tasman Express as an endorsement not only of our new fares policy but of our total product between Australia and New Zealand, and of our strategy for this market going forward."

Air NZ is not expected to have the market to itself for long, with both Virgin Blue and Qantas promising to remain competitive.

The cheap fares will be permanently available on a quarter of all the airline's trans-Tasman seats and up to a 40 per cent on some routes.

Business-class fares have been reduced by an average of 26 per cent.

Tasman Express begins on October 29 and retains two classes with inflight entertainment and a more basic food service.

Economy fares have been simplified to three tiers, but will now attract a $20 "user pays" booking fee per one-way sector if booked through Air NZ call or travel centres.

Booking via the Web is free, but travel agents will also have the option of applying the fee.

As well as the non-refundable Smart Saver fare, the airline is offering a mid-range economy fare with the flexibility to change flights for a fee of $100.

The new fares apply to routes between more than 20 New Zealand destinations and Sydney, Melbourne, Brisbane, Cairns and Perth.

Norm Thompson, Air NZ's senior vice-president sales and distribution, said the new fares were possible because of fundamental changes to the airline's trans-Tasman business model, including the introduction of more cost-efficient A320 aircraft.

Air New Zealand carried 11 per cent of all passengers into Australia in the year to March, 2003, and the new fares were welcomed as a win for tourism in both countries.

TTF Australia chairman Les Cassar said the move reduced trans-Tasman airfares by an average of 20 per cent when business fares were included.

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[Hudson Hawk]

Kavu,

Did Jetconnect offer him a laptop as part of his package or do you think he'll just pick one up lying around the Wellington Base? :E:

HH

[kavu]

HH

Now that's funny:ok: :D :D :D

[Vmo248]

Heard all ANZ crew on A320 were to be issued with laptops, such is the technological rqrmnts of their operation! Pens are so 20th century - only required to sign tech log?!

[Jet Man]

Heard today from a mate that VB are starting WLG and CHC bases later in year. He also sais pay will be higher than Jetconnect and Freedom.

This process sounds alot more advanced than I thought!

Anyone else heard anything about VB in NZ?

[Pimp Daddy]

Heard today from a mate that VB are starting WLG and CHC bases later in year.

One would suspect they would set up a base in AKL first, given that is where the bulk of the traffic is.

The Jetconnect base is only in Wellington because WLG has 2 737s o/n for international ops and is 737 only.

[Johhny Utah]

Jet Man - I find it hard to believe that DJ would come into the market and offer to pay MORE than the going rate - after all, look at the salaries offered in their Australian operation. :(

Given the (relatively) low wages being offered in NZ, it will be interesting to see just how low Virgin think they can offer & still get away with it...but hey - who needs to be well paid...? :rolleyes:

[Anti Skid On]

watch out for all the falling low time 737 right seaters who'll all want their turbo prop jobs back.

If DJ come to party where will

a) all the 737 type rated folk come from and?

b) where will they go when it goes ar5e up?