The Federal Government is expected to up the ante today in a bid to persuade Qantas to keep up to 2000 heavy maintenace jobs in Australia.
Today’s budget is tipped to include a Government commitment to scrap the tariff Australian airlines pay on aircraft parts.
Axing the tariff will help all airlines, but it will boost the dominant player Qantas’ competitiveness and make it more attractive for the airline to keep its maintenance facilities and workers in Australia.
It is believed that Qantas has lobbied the Government for several years to axe the duty, arguing that it imposes an unnecessary cost on the aviation industry and fails to protect Australian jobs, either for the airline or for other manufacturers.
It has also asked for a range of other policy measures to strengthen its position in the international aviation market.
Qantas wants the rules changed to allow more foreign investment. It also wants new and more generous depreciation rules for its aircraft, which apply in some countries, but not in Australia.
Qantas maintains and services up to 150 large aircraft each year. The company has recently announced plans to close its Sydney maintenance facilities and shift critical work to Avalon in Victoria.
