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Jetstar Planning For Proposed Strike
Australian low-cost carrier Jetstar is cancelling flights due to a workers strike.
The carrier has cancelled 90 flights after employees planned a strike due to safety and pay disputes.
Jetstar has started to consolidate services, including re-aligning flights and aircraft in order to meet its existing flight load. 10 percent of the carrier’s domestic network will be cancelled next month to prepare for the strike.
Employees at the carrier have been requesting more breaks during the day and a wage increase of four percent. Those changes would result in a 12 percent increase in costs.
“It depends how long it goes for and what form that it takes,” said Gareth Evans, chief executive officer of Jetstar regarding the financial impact of the strike.
“What I can say though is that we want to get to an agreement, but not at any cost,” added Evans.
Jetstar estimates the action could impact its earnings by $14 to $17 million USD.
The strike comes after ground crew walked-off at airports across Australia this past Friday.
In terms of fleet re-alignment, the carrier predicts that three Boeing 787-8s will be removed from service in order to remain profitable. The carrier currently operates 11 aircraft of the type.
These three Boeing 787s are reportedly used on “loss-making and marginal international routes.”
“A business case has been developed to sell these three aircraft, with capital to be reinvested in other parts of the Qantas Group or returned to shareholders,” said the airline in a statement.
Unions involved in calling the strike have been pressuring the airline to investigate working conditions at its airports after a health and safety regulator with the state of New South Wales issued a notice last month regarding risk to workers’ health and safety.
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