Wednesday, December 22, 2010

How Australian is Jetstar?

Below is a union point of view. It does however overlook the environment Jetstar is operating in. Jetstar could well cease to exist if it has to pay much higher salaries than its Asian rivals. Jetstar offers cheap and nasty travel. If people want better service and greater safety Qantas is positioned to offer that -- though whether it actually does would seem moot

The key take out that everyone in Australia got from the recent Qantas incident in Singapore is that pilot experience is critically important. As more and more information filters about just how serious the situation was with QF32, pilot training and experience are being widely acknowledged, from the CEO of Qantas down, as having arguably made the difference.

Given the travails of Qantas over recent weeks, you would think that Jetstar would think twice about its absurd plans to put less and less experienced pilots in the cockpit of its aircraft.

Until now Jetstar have employed pilots with a minimum of 2000 hours flight time and in fact, most, if not all, have more than 2000 hours flight time experience. What the company, however, is proposing to do in the near future is employ cadet pilots with as little as 200 hours total flight time.

Whilst the 200 hours will be supplemented by a further 1000 hours “supervised training”, what it neglects to mention is that some of this “supervised training” refers to actual flying time with fare paying passengers onboard.

That effectively means that pilots with a minimum of 200 hours total flight time experience will potentially be cutting their teeth with fare paying passengers onboard in an operating environment considered to be complex and demanding of even highly experienced pilots.

These cadets will pay up to $180 000 out of their own pockets for their training with no guarantee of employment at Jetstar. If they are indeed employed by the company they will be paid wages that are proposed to be less than half that of a regular newly recruited pilot at Jetstar.

In fact, their proposed salary is well below the Modern Pilots Award, which sets the minimum standards of employment in Australia.

Despite the cadets huge training debts they will be “bonded” to the company for up to 6 years and during that time will, based on my information, earn approximately $42,000.00 (New Zealand Dollars) a year, less than most secretaries or factory workers (before making the payments on their huge debts).

The people who are really paying for Jetstar CEO Bruce Buchanan’s aggressive cost-cutting strategy could be Jetstar’s fare paying passengers. Is a pilot with 200 hours actual flying experience as safe as a 2000 hours experienced pilot? Are you as competent a driver when you had your P plates for 2 months, as compared to now? You be the judge.

Jetstar’s Australian pilots feel their job security to be coming increasingly under threat as the company moves aggressively to undermine Australian working conditions by creating artificial offshore entities that are able to circumvent the Fair Work Act and pay pilots less than the relevant minimum Australian standards.

The company has recently offered employment to Australian pilots in off-shore entities to operate in and out of Australia and AIPA believes that if this trend is allowed to continue unchecked, the entire Australian Aviation industry could be off-shored using artificial foreign corporate entities to circumvent Australian workplace laws.

This would deprive an entire section of Australian society of their livelihood and irreparably diminish Australia’s reputation for aviation safety and excellence.

Mr Buchanan stated in his address to the National Aviation Press Club on the 15th of November that “Our cost base must reflect the markets we sell seats in and enable us to provide a competitive relevant offering to consumers in each of these markets. To achieve this we are developing significant local bases with locally relevant network offerings”.

Strategies such as these will see Australian Jetstar pilots, having to move their families to bases overseas, fly in and out of Australia, on third world pay rates.

What is the “regional relevance” of paying a pilot in New Zealand Dollars (less than the Australian Award) to fly an Australian aircraft from Sydney to Fiji or even worse, using these NZ$42,000.00-cadet pilots to operate domestically in Australia?

The passengers on those flights are paying their fares in Australian Dollars. It is Australian flying by an Australian company and they should be paying the appropriate Australian salary. It is not about obtaining “regional relevance”.

This term is merely a façade to justify employing people on third world wages to work for an Australian airline, doing Australian work. It begs the question, how ‘Australian’ is Jetstar? Is what Jetstar doing ‘Australian’?

Australian aviation is at the crossroads. I understand that everyone loves cheap fares but nothing is for nothing and those who run Jetstar have failed to comprehend the lessons from recent events: experience may cost a little bit more, but it certainly counts for much, much, more – and I don’t think the travelling public will disagree.

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One experience of the difference between Qantas and Jetstar

A few weeks ago I flew Perth-Melb-Newcastle…the first leg was Qantas, great - business class, Qantas lounge….

The second leg was Jetstar. I had a 3.5 hour wait at Melbourne, so I went straight to the check in line….HUGE. It took me a bit over an hour waiting in line to get to the counter, where I was informed by a very disinterested young girl, who had a smart mouth on her, that I couldn’t check in until two hours before the flight.

Fine…I grabbed my luggage (since Qantas and Jetstar couldn’t check anything through). I go back after having a bite to eat, wait in a longer line this time, get to the counter with 45 minutes to spare only to be told check-ins had closed for that flight!!

I calmly explain my predicament and highlight the fact that it was the second time I’d queued - tough luck. Turns out that flight was delayed by over 3 hours anyway…but they still wouldn’t let me on.

I refuse to use Jetstar ever again

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