I49 Air and Space Transport

ACCC ticks Virgin-Qatar flights plan

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 14 & 19 : 19-Feb-25

The Australian Competition & Consumer Commission has backed Vigin Australia’s proposed alliance with Qatar Airways. The ACCC’s draft determination has concluded amongs other things that the wet-lease agreement will be advantageous to travellers by offering a greater choice of international flights, more convenience and enhanced loyalty program benefits. Qatar Airways will also acquire a 25 per cent stake in Virgin if the deal receives final approval from the ACCC, and ultimately the Foreign Investment Review Board and Treasurer Jim Chalmers.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, QATAR AIRWAYS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY

Sacked Qantas workers’ record $120m payout

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 3 : 18-Dec-24

Qantas has agreed to pay $120m in compensation to 1,683 ground handling workers whose jobs were outsourcd in 2020. The Transport Workers Union’s national secretary Michael Kaine has welcomed the deal; he says that "delivering justice" to the affected workers is "the first step in turning Qantas around". Economic and non-economic losses will be considered in determining each worker’s share of the payout. Qantas had argued that the outsourcing was necessary in response to the pandemic, but Federal Court ruled that the workers had been illegally sacked to prevent them from exercising their workplace right to take industrial action.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, TRANSPORT WORKERS’ UNION, FEDERAL COURT OF AUSTRALIA

Pay deal averts airport strike

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Original article by Robyn Ironside
The Australian – Page: 15 : 10-Dec-24

Over 1,000 ramp, cargo and baggage operations workers employed by Emirates-owned dnata had been threatening to strike for 24 hours on Wednesday in search of better rostering, job security and pay, with the proposed strike threatened to disrupt international flights. However, the strike has been averted after talks between dnata and the Transport Workers Union on Monday, with dnata agreeing to a number of demands, including a 11 per cent pay rise over two years and seven days’ notice of roster changes.

CORPORATES
DNATA CARGO AGENCIES, EMIRATES AIRLINES, TRANSPORT WORKERS’ UNION

Major airlines cashing in on Rexit

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Original article by Joseph Lam
The Australian – Page: 15 : 13-Nov-24

Data from the Australian Competition & Consumer Commission shows that Qantas and Virgin have benefited from the collapse of Rex Airlines. The major carriers’ revenue per passenger on capital city routes has risen to $98.40, compared with $86.80 in July when Rex went into voluntary administration and ceased servicing these routes. The ACCC has warned that market concentration means that further increases in airfares are likely, while it may take some time for a serious third competitor to enter the domestic aviation market. Meanwhile, the federal government will provide Rex with $80m of taxpayers’ money to keep servicing its regional routes.

CORPORATES
REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED – ASX REX, QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Qantas, ACCC agree on $120m penalty for ghost flights

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Original article by Robyn Ironside
The Australian – Page: 15 & 19 : 9-Oct-24

The Federal Court has approved a settlement between Qantas and the Australian Competition & Consumer Commission regarding the former’s "ghost flight" scandal. Qantas has agreed to pay a $100m fine and pay affected customers a total of $20m in compensation for selling tickets for flights that had already been cancelled during the pandemic. The ACCC was represented by Chris Caleo KC, who argued that complying with consumer law must be a priority for Qantas, given that it is the nation’s largest airline and carries millions of passengers each year.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FEDERAL COURT OF AUSTRALIA

Virgin boss says Qatar partnership will boost competition

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Original article by Amelia McGuire
The Age – Page: Online : 2-Oct-24

Virgin Australia CEO Jayne Hrdlicka has defended the proposed deal to sell a 25 per cent stake in the carrier to Qatar Airways. As part of the deal with Qatar, Virgin aims to commence ‘wet lease’ services to Doha from mid-2025 using the Qatari airline’s fleet of aircraft. Hrdlicka adds that it would take six years for Virgin to gain access to enough planes to begin its own long-haul international flights. The Transport Workers Union has expressed concern about the implications of the wet lease deal for Virgin employees, given that its international flights will use Qatar Airways pilots and cabin crew.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, QATAR AIRWAYS, TRANSPORT WORKERS’ UNION

Qatar to take 25 per cent stake in Virgin Australia

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Original article by Robyn Ironside
The Australian – Page: Online : 1-Oct-24

Qatar Airways will become a cornerstone investor in Virgin Australia following lengthy negotiations with Bain Capital. The Qatari carrier has agreed to acquire a 25 per cent stake in Virgin, although the latter’s CEO Jayne Hrdlicka concedes that regulatory approval from the Foreign Investment Review Board and the Australian Competition & Consumer Commission cannot be taken for granted. The two airlines have been codesharing partners since 2022. Bain Capital is still expected to pursue an IPO for Virgin before the end of 2024 or in the new year.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, QATAR AIRWAYS, BAIN CAPITAL LLC, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Qantas, Virgin defend higher fares in the wake of Rex’s exit from domestic trunk routes

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Original article by Robyn Ironside
The Australian – Page: Online : 18-Sep-24

Australia’s two major airlines have downplayed data which suggests that economy airfares have risen by more than 12 per cent since July. This coincided with the collapse of Rex Airlines and its withdrawal from capital city routes. Qantas contends that the Bureau of Infrastructure & Transport Research Economics’ data does not represent the average fares that customers are paying for domestic flights. Virgin Australia in turn argues that factors such as football finals and school holidays traditionally result in price variance in September compared with July.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED, REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED – ASX REX, AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT, COMMUNICATIONS AND THE ARTS. BUREAU OF INFRASTRUCTURE AND TRANSPORT RESEARCH ECONOMICS

Administrators for Rex to axe another 73 jobs at troubled regional airline

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Original article by Kate Ainsworth
abc.net.au – Page: Online : 20-Aug-24

Some 594 employees of Rex Airlines have been retrenched since EY was appointed as the failed carrier’s administrator in late July. EY has advised 261 of Rex’s remaining employees via email that 73 of them will be sacked because they are surplus to the requirements of an airline that is now solely focused on servicing regional areas; all of the staff to be retrenched had been a part of Rex’s ill-fated expansion into capital city markets. Rex will have about 1,200 employees following the latest job cuts, which is similar to its staff levels prior to its expansion and the COVID-19 pandemic.

CORPORATES
REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED – ASX REX, ERNST AND YOUNG

Rex’s expansion push could leave regional travellers paying the price

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Original article by Sezen Bakan
The New Daily – Page: Online : 31-Jul-24

Rex Airlines has advised that EY has been appointed as voluntary administrators of the Regional Express listed entity and a number of subsidiaries. Rex also announced that its fleet of Boeing 737s have been grounded and all flights on capital city routes have been cancelled; however, flights to regional destinations will continue to be serviced by its fleet of Saab 340s. Professor Pierre Benckendorff from the University of Queensland says airfares on capital city routes are unlikely to be affected if Rex is liquidated; he adds that airfares on regional routes could rise sharply due to lack of competition, and some routes may be discontinued.

CORPORATES
REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED – ASX REX, ERNST AND YOUNG, UNIVERSITY OF QUEENSLAND