Qantas will announce massive job cuts on Thursday despite federal government assistance looking likely.
PRESSURE is mounting on Qantas, with government MPs criticising its management and CEO Alan Joyce, and unions warning flights could be disrupted tomorrow when the airline announces the loss of up to 5000 jobs.
The future of Qantas dominated federal politics yesterday, Liberal MP Warren Entsch blasting its "mismanagement", while fellow Liberal Teresa Gambaro warned government help could turn Qantas into a "Godzilla".
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Labor MPs also attacked Qantas management.
The Herald Sun revealed yesterday that Qantas is set to slash up to 5000 jobs and is negotiating to sell off its long-term leases at airport terminals in Melbourne and Brisbane as it seeks savings of $2 billion.
Qantas CEO Alan Joyce Source: HeraldSun
The airline is seeking federal government assistance, and is expected to announce a $300 million half-year loss.
Mr Entsch told a meeting of Coalition MPs if there were to be an assistance package for Qantas, it ought to be "fair'' and available to other rivals.
But any package had to be accompanied by questioning the competency of the management, including Mr Joyce.
Ms Gambaro told the meeting the government should not give a debt guarantee to Qantas but if it did, help should also be given to its rival Virgin Australia — which has its HQ in her Brisbane electorate.
"Qantas is an 800-pound gorilla and if we do this we will turn it into a Godzilla," Ms Gambaro said.
To add to the pressure, Qantas engineers have threatened to raise safety concerns that could disrupt flights tomorrow, sending an early warning about what the heavily unionised airline could expect if job cuts are as deep as feared.
Pressure is mounting on Qantas as they are set to announce 5000 job cuts. Source: HeraldSun
Licensed Aircraft Engineers Association secretary Steve Purvinas sent an email to Qantas requesting a safety risk assessment for the hours after the cuts announcement.
"Some members ... have expressed concerns that the announcement is causing them to have trouble sleeping and this is leading to a situation of fatigue at work," he wrote.
The Federal Government is pushing ahead with plans to amend the Qantas Sale Act to remove the provision that requires Qantas to be majority Australian-owned, agreeing with the airline that the law makes it difficult for it to compete with foreign-owned competitors such as Virgin.
But Labor and the Greens, along with some Coalition MPs, do not support the changes, and a debt guarantee seems more likely.Opposition Leader Bill Shorten reiterated his party's view that the airline needed to remain Australian-owned.
"Eight of the world's top 10 airlines are owned by foreign governments. Labor doesn't see why Australia should hand away a national icon to a foreign government,'' he said.
ellen.whinnett@news.com.au
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