Qantas chief execitive officer Alan Joyce has attacked proposed aviation industry legislative reforms saying there were ’’grave fears’’ for the future of the airline should they proceed.
In an opening statement to a Senate inquiry into aviation industry legislative reform, Mr Joyce said the proposed amendments would restrict the airline’s ability to compete and constituted a ’’major threat’’ to the business and Australian jobs.
He said the amendments to the Qantas Sale Act, which aims to ensure Qantas remains a majority Australian-owned carrier and to restrict is expansion overseas, would strangle the airline.
’’These amendments would not increase protection for Qantas. They would not make us more Australian. They would not save or grow Australian jobs. They would have the opposite effect,’’ Mr Joyce said.
’’Measures targeted at lowering our competitiveness, closing us off from global markets, and raising our cost-base is not patriotic, nor are they smart. Frankly they are not workable.’’
He said further amendments proposed by senator Nick Xenophon would mean either Jetstar would fail or would have to be sold to enable it to succeed in the international aviation environment.
Mr Xenaphon’s proposals is for Jetstar to conduct the majority of its heavy maintenance in Australia.
Mr Joyce said this meant the airline could not meet competitors which enjoy a lower cost base by undertaking maintenance overseas.
He said amendments to the Cabin Crew Bill would not preserve Australian jobs but force Qantas to pay uncompetitive wages compared to foreign airlines.
He said if international crews were given the same wages and conditions on domestic legs of international flights as Australian employees, the airline would no longer be able to viably operate those international services, including connections between Darwin and Cairns to Asia and Europe.
’’The impact on regional tourism and development would be immediate and negative. It would result in loss of employment and investment in regional Australia, with flow-on effects for the rural communities who rely on regional centres,’’ Mr Joyce said.
Do you think the changes are necessary for the industry?