Media reports say that Jetstar may be forced to add Qantas to its name if the airline’s full service parent loses a Federal Court action contesting whether it is legal for Qantas to operate international services under a different trading name.
Qantas registered two new business names, Qantas Jetstar and Jetstar Qantas, just two days after the Australian International Pilots Association launched a legal action arguing that the Qantas Sale Act forbids Jetstar from flying overseas services.
Confirming a move that will further blur the so-called independence the low-cost subsidiary has from Qantas, Jetstar spokesman Simon Westaway admitted that the business names were registered on Jetstar’s behalf, adding, “Even if they (AIPA) were successful, Jetstar as a business wouldn’t miss a heartbeat, it would be a tweak to how we do business”.
Mr Westaway added, “In any case, the registration of the new business names ensured Jetstar’s recent foray into Asia would not be affected if the court action went against the airline”, adding, “We believe the union is wasting their members’ money by pursuing this matter”
The pilot’s union has argued that Section 7(f) of the Qantas Sale Act prevents the Qantas Group from flying operations under another name, this is despite Qantas already operating two subsidiaries into Asia with different names, Australian Airlines and Australia-Asia Airlines.
The registration of the new business names – on February 28 – came the same day Qantas Executive General Manager John Borghetti issued a memo to Qantas pilots that said the court action was “without legal foundation”, saying “The case appears to have been bought by AIPA as an opportunistic attempt to obtain media coverage.”
The court action follows AIPA’s failed bid to have Qantas Group employ Qantas and Jetstar pilots under the same working conditions, with Jetstar international pilots not only receiving less pay but having to pay $33,000 for their training.
Report by The Mole
