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Qantas CEO will not move on pay
Geoff Dixon, Chief Executive of Qantas has issued a terse warning to the airline’s long haul pilots that Qantas will not increase its pay offer or back off from its decision to start a new international carrier.
Mr Dixon issued the warning in very straightforward letter to the airline’s long haul pilots, saying that undertaking an active campaign to vote no on the new enterprise bargaining agreement would not have any influence on Qantas’ strategy to take launch Jetstar international.
As reported earlier in TravelMole, Qantas’ Pilots have serious concerns regarding plans to set up Jetstar International and the airline’s plans to start a second officers’ base in Singapore.
Mr Dixon said that the proposed agreement provided for back pay, a 3% annual pay rise and what he described as “some sensible efficiencies” and if the proposed agreement is voted down, the current enterprise agreement, and the current pay rates will continue until a new agreement is accepted.
Mr Dixon took the stand of saying that the Union can approach Qantas with a new claim, but he could assure pilots that the 3% pay offer will not be increased and threatened that neither will the offer for back pay be repeated.
Mr Dixon has made it very plain that he will not shift from the airline’s strategic direction and that Jetstar had grown new routes, protected Qantas’ market share and strengthened the mainline brand and yield, adding that the same rationale and principles would underscore its international operations.
This clearly indicates that although Mr Dixon has denied that Jetstar will operate on QF routes, nothing is off the agenda in terms of Jetstar’s doing so and in particular potentially QF’s classic long haul routes, if it makes commercial sense to the company and drives better profits.
Report by The Mole
Graham Muldoon
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