Qantas Faces Low-fare Quandary
Qantas continues talks with employee groups.
Qantas plans to retire four Boeing 747s as part of its international network restructuring. (Photo: Qantas)
Qantas plans to retire four Boeing 747s as part of its international network restructuring. (Photo: Qantas)

While Qantas participates in a series of negotiating sessions with three of its employee unions, it appears the threat of low-fare competition in the region won’t soon abate, raising tensions between the Australian flag carrier’s management and workers who fear losing their jobs to overseas “outsourcing.”

The airline drew the ire of its employee groups when it announced in August plans to open a new airline based in Asia “with a new name, new aircraft and a new look and feel,” along with a new low-fare venture with Japan Airlines and Mitsubishi called Jetstar Japan. Meanwhile, plans call for Qantas itself to shed 1,000 jobs as a result of a new international network strategy and retirement of aging aircraft. A series of “rolling strikes” ensued, prompting Qantas to shut down all operations for two days.