Union: Don't Believe the Hype, Qantas Still in Deep Trouble

Feb. 22, 2013

The Transport Workers' Union of Australia issued the following news release:

Despite the spin from the CEO and money from Boeing for not supplying planes, Qantas remains in deep trouble and until such time as the Board of Directors pull together a coherent strategy that involves investing in staff, planes and Qantas mainline, the Flying Kangaroo remains at risk of being culled. That's according to Tony Sheldon, National Secretary of the Transport Workers' Union.

Tony was speaking today (21.2.13) in Brisbane after the Qantas Group posted its half-yearly results. "Despite the spin from the CEO, Qantas has only returned to profit because Boeing is paying Qantas $125 million for not delivering planes and because management didn't shut the airline down during this period and cost the company $194 million. Even a cursory analysis of the results shows that Qantas Domestic and Jetstar's earnings are well down."

"No one wants a profitable and successful Flying Kangaroo more than the Qantas workforce. Despite the actions of management over the past few years, TWU members are incredibly proud of working at Qantas. But everyone knows that today's results are papering over the cracks and a growth strategy that is based on being paid for not having planes in the air, a new credit card and not locking out your workforce is no strategy at all."

"It is clear that senior management, led by the CEO and Chairman Leigh Clifford, remain determined to spin the figures. If they want staff, investors and the travelling public on board then they need to come clean on how much Qantas mainline is paying to support the Asian expansion of Jetstar. While they are at it they should explain why they think it is ok to pay Thai flight attendants as little as $247 dollars per month to fly Australian domestic routes. "

"Qantas must also come clean about Board member Corinne Namblard's links to an Italian banking corruption scandal and exactly when the Board became aware of this. And while they are at it they should explain why another Director, Paul Rayner, is selling his own company's wine to Qantas."

Tony Sheldon concluded "The TWU will always remain committed to keeping Qantas flying, but until such time as we see a clear strategy and some honesty from this senior management team we will continue to ask the hard questions."

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