Qantas Mulls Lending Surplus Pilots to other Airlines
Qantas Airways has revealed plans of loaning significant numbers of its pilots to other international airlines, claiming that they agreed to go on unpaid leave as the national carrier implements measures to reduce its costs.
Wracked by labour problems, dipping revenues on international routes and higher fuel prices, Qantas announced the 'mutually-agreed set up' and termed it as temporary but practical solution to ease some pressures off the company.
According to the Wall Street Journal (WSJ), at least 150 pilots will be affected by the scheme and many of them will mostly be hired by Arab airlines for at least three years.
"This is not an uncommon practice for Qantas and we have done so before when capacity has been reduced, such as during the global financial crisis," the airline was quoted by WSJ as saying in a statement.
The publication said on Wednesday that despite the planned absorption of excess Qantas pilots, some 400 more could remain floating as the Australian carrier finds ways to rationalise its operation and offset losses, mostly coming from its international service routes.
As of June last year, Qantas has reported that its international operation bled by at least $200 million and the company's woes were further compounded by rising costs that the airline claimed were 20 percent higher than its competitors.
By the last quarter of 2011, Qantas faced more problems with its employees as the company was forced in October to ground its entire fleet for a few days following work stoppage implemented by the airline's ground crews.
The federal government stepped in to remedy the situation and all parties concerned now await the outcome of the ensuing arbitration, WSJ wrote.
However, Qantas' latest actions were criticised by the Australian International Pilots Association (AIPA), claiming that by letting go of the pilots and putting some of them in 'limbo', many young careers will be jeopardised.
To stop losses and post profits, Qantas has been focusing its attention raising its stake on regional subsidiaries in Singapore, Malaysia and lately Japan, fronted by its budget carrier Jetstar.
Such move, according to AIPA president Barry Jackson, could eventually destroy the career paths of Qantas pilots, especially the young ones.
"A lot of young guys' prospects of a command post with Qantas are fast disappearing into the horizon with the grace of these partly owned subsidiaries," Jackson told WSJ.