Bitter Dispute: Qantas Airways grounds entire fleet

Qantas Chief Executive estimated the latest move would cost the airline AUD20 million a day.

SYDNEY: Australia’s Qantas Airways grounded its entire fleet on Saturday over a bitter labour dispute in an unprecedented move that prompted the government to warn it feared for the airline’s future and would seek action to end the dispute. Qantas said it would lock out all employees from Monday night in a dispute affecting 70,000 passengers and 600 flights on one of the country’s biggest travel weekends. The grounding does not affect Qantas’ budget airline Jetstar. The announcement took passengers and the government by surprise, embarrassing Prime Minister Julia Gillard who was hosting a Commonwealth leaders’ summit in Perth. Some of those leaders are booked to fly home on Sunday with Qantas. Qantas Chief Executive Alan Joyce said, “(The unions) are sticking by impossible claims that are not just to do with pay, but also to do with unions trying to dictate how we run our business.” Joyce estimated the latest move would cost the airline AUD20 million a day.

Published in The Express Tribune, October 30^th, 2011.