Qantas Chief Executive Alan Joyce has opposed proposed changes in the Qantas Sale Act and cabin crew laws. He warned that planned changes being discussed in the Australian parliament could lead to job losses and reduced aviation access.

Mr Joyce said that if Qantas subsidiary, Jetstar, would be forced to perform the bulk of its heavy maintenance in Australia, it would place in peril the budget air carrier's capacity to run its business. If Jetstar would be mandated to pay foreign crew at Australian rates when the plane is on the Australian leg of overseas trips, Jetstar would need to reduce services to Europe and Asia.

Rather than increase protection for Qantas, Mr Joyce said the planned legislative changes would only result in serious and unintended consequences for the flag carrier, but it would not make Qantas more Australian.

"If Australians want a truly competitive national carrier this parliament cannot tie up Qantas in this way."

"You would be responsible for making Qantas less competitive just when we most need the freedom to compete," Mr Joyce told senators.

He said that forced changes in the Qantas Sale Act such as keeping maintenance in Australia and restrictions on the use of foreign cabin crew could lead to the company selling Jetstar.

Mr Joyce added that the planned changes went beyond the proposed amendments made by Senator Nick Xenophon to limit majority ownership of Qantas to Australian stockholders. He said such a move would strangle the firm's capacity to run its business.

There are two bills being discussed in the Australian Parliament in relation to Qantas. One aims to force the air carrier to keep its main operations in Australia and the other to ensure no Australian airline could have an aviation licence unless the salaries and work conditions it provides to overseas-based flight and cabin crew are the same as that of Qantas employees.

The embattled Qantas chief executive got the support of Transport Secretary Mike Mrdak who said that Australian air carriers require continuing flexibility to put in place business strategies that keep in line with changing market circumstances.

Qantas is still suffering from the impact of its prolonged labor row with three unions involving pilots, ground crew and aircraft engineers which led to the dispute being arbitrated by Fair Work Australia after Mr Joyce unilaterally grounded the air carrier's fleet in November. Since then, Qantas has settled with the aircraft engineers' union and is in discussions with the two other unions.

Last week, Qantas and Jetstar also announced plane fare increases due to higher aviation fuel costs and carbon taxes. The fare hike would take effect on Feb 9 for domestic flights and Feb 15 for international trips.

It would be collected through higher surcharges of passengers of up to 24 per cent which would boost one-way plan fare between Sydney and Melbourne by up to $5 and by up to $60 for international flights.

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