Qantas upsets NZ union

By Phil Boeyen, ShareChat Business News Editor

Friday 5th October 2001

Qantas is under attack from New Zealand's largest union which is worried the Australian airline is about to start using foreign aircraft and crew on domestic flights.

The Engineering, Printing and Manufacturing Union says it understands that Qantas is planning to start using leased Air Pacific and Polynesian aircraft and crews on internal New Zealand flights, beginning this weekend.

The union is asking the government to step in and prevent the move, which it claims will harm the recovery of Air New Zealand (NZSE: AIRVA) and Ansett Australia.

Union secretary, Andrew Little, says Qantas is already flying leased Air Canada planes with Canadian pilots and crews on trans-Tasman routes, using the aircraft to replace its own planes, which it wants back in Australia to compete with Ansett mark II.

Mr Little has written to Transport Minister Mark Gosche asking him to prevent the use of "wet leased" aircraft in New Zealand.

"The government has just spent nearly $900 million of taxpayers' money bailing out Air New Zealand for the good of the country. It is entitled to protect its investment."

Mr Little also says he is disappointed with the lack of response from Australian unions to the Qantas move.

"The Australian Government told Qantas that it couldn't fly leased planes with foreign crews in Australia, but using them on the Tasman will do just as much to risk the recovery of Ansett Australia and Air New Zealand."

"The Australian unions were prepared to make a big noise and effectively hold our Prime Minister hostage, but they're not prepared to do anything now, when it really counts."

Mr Little says he plans to get in touch with his counterparts in Australia, urging them to take seriously the threat posed by Qantas to the two airlines.

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