Qantas Chief Executive Alan Joyce and some aviation experts are of the opinion that Fair Work Australia (FWA) would rule in favour of the air carrier to settle the industrial dispute with unions.

Mr Joyce believes that Qantas's argument that the job security guarantees sought by the unions would harm the air carrier financially and lead to future job losses is strong enough to sway the FWA decision,

The same opinion was given by some industry observers. Macquarie Group analyst Russel Shaw said that the regulator is unlikely to back any union conditions that would limit Qantas's ability to create new airlines in a bid to reverse $198 million annual losses from its international operations.

"We would be surprised if any of the arbitrated decisions put operational constraints on the business.... We view a favorable arbitrated outcome as likely," Bloomberg quoted Mr Shaw's report to clients.

While the Transport Workers Union (TWU) said on Tuesday that it intends to negotiate and proceed with compulsory arbitration under FWA, the union hinted it will exercise their rights if TWU would not be satisfied with the FWA decision.

"If the company refuses to negotiate with us in good faith, leading up to and through the arbitration process, then there is every possibility that there would be further disruptions that would occur in the aviation industry," The Sydney Morning Herald quoted TWU National Secretary Tony Sheldon.

Members of Australian and International Pilots Association (AIPA) also sought an inquiry if Mr Joyce misled a Senate investigation on the grounding of fleet and crew three weeks ago. The chief executive declared under oath that the decision to ground was his alone, but two couriers claimed that days before the fleet grounding, the company drivers were booked to delivery lockout notices to 8,000 Qantas staff.

The long-haul pilots said the statement by the couriers show that Mr Joyce had planned to lock out the striking employees before Oct. 29, but kept the plans from stockholders.

In response to the pilots' claim, Mr Joyce said conspiracy theories will arise, but insisted the decision to ground Qantas jets was made on Oct 29.

The pilots estimate that the FWA arbitration process could take up to six months, which exposes both sides to an element of risk.

"We've got a fairly complicated agreement and there's a lot of expert witnesses we've got to bring in," AIPA President Barry Jackson told Bloomberg.

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