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Qantas flights back to normal after grounding

Sat Oct 29, 2011 2:41 AM EDT
world-news, business, australia, as, qantas, qantas-airways, qantas-airways', ceo-alan-joyce
Kristen Gelineau, Associated Press
This Qantas passenger says it's been difficult to find another flight.
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showing 1 of 26 photos
<p>FILE - Qantas passenger jets are seen parked at their terminal at Sydney Airport in this July 13, 2003, file photo. The Australian carrier's entire fleet of 108 aircraft will remain grounded until unions representing pilots, mechanics and other ground staff reach an agreement with the airline over pay and conditions, Qantas chief executive Alan Joyce told a news conference in Sydney Saturday Oct. 29, 2011. Joyce estimated the grounding will cost the airline $20 million a day. (AP Photo/Mark Baker, File)</p>

FILE - Qantas passenger jets are seen parked at their terminal at Sydney Airport in this July 13, 2003, file photo. The Australian carrier's entire fleet of 108 aircraft will remain grounded until unions representing pilots, mechanics and other ground staff reach an agreement with the airline over pay and conditions, Qantas chief executive Alan Joyce told a news conference in Sydney Saturday Oct. 29, 2011. Joyce estimated the grounding will cost the airline $20 million a day. (AP Photo/Mark Baker, File)

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SYDNEY — Qantas Airways said its flights were back on schedule Tuesday, a day after an Australian court ruling ended 48 hours of travel chaos stemming from the airline's decision to ground its entire fleet.

Qantas, the world's 10th-largest airline, said all flights were operating on time and as scheduled, with the remaining backlog of passengers affected by the two-day grounding expected to be cleared by Tuesday afternoon.

The airline grounded its fleet Saturday in response to months of strikes by unions representing pilots, aircraft mechanics, baggage handlers and caterers. The move threw the travel plans of tens of thousands of passengers into disarray, and prompted the government to order an emergency court hearing.

On Monday, an arbitration court ordered an end to the strikes, which had forced the cancellation of 600 flights in recent months, disrupted travel for 70,000 customers and cost Qantas 70 million Australian dollars ($75 million). The court also canceled a staff lockout, and the airline began flying again about 12 hours later.

The court gave the airline and unions 21 days to reach an agreement. If no deal is reached by then, they will be forced into mandatory arbitration.

"The question is whether the parties can now act in a mature way," Transport Minister Anthony Albanese told reporters Tuesday in Australia's capital, Canberra. "We've called upon both Qantas and the unions to get down to business and to get this deal done."

Qantas enraged union workers in August when it said it would improve its loss-making overseas business by creating an Asia-based airline with its own name and brand. The five-year restructure plan will cost 1,000 jobs.

The airline also said in August that it had more than doubled annual profit to AU$250 million. But it warned the business climate was too unstable to forecast future earnings.

Australian and International Pilots Association president Barry Jackson said its negotiators were working hard to come to a resolution with the airline.

"The clock is ticking," Jackson told Australian Broadcasting Corp. television on Monday night. "I'm pretty confident that we'll get an agreement."

Qantas CEO Alan Joyce defended his decision to ground the airline, saying while it was costly in the short-term, it helped the airline overall.

"I'll make whatever tough decisions are needed to be made in order to ensure the survival of this great company," he said Monday.

Qantas shares closed up 1 percent to AU$1.63 Tuesday on Australia's stock exchange.

Qantas is the 10th-largest airline in the world by passenger miles flown, according to the International Air Transport Association, an airline trade group.

© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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  • Regions: Australia
  • Public Discussion (4)
Tony T Bear

What is missing from this story is the demands the unions are making on the airlines. Many unions cannot grasp that businesses at times must balance pay and benefits to sustain the business AND THE UNION.

Look at GM for instance, union workers full pay for doing nothing, labor rates for unskilled near professional rates.

There must be good reason thew airline would do such a drastic step, what are they???

    Reply#1 - Sat Oct 29, 2011 4:16 PM EDT
    Tony T Bear

    What are the union demands that caused the airline to take such a drastic step? This is a major deficiency of the article.

    • 1 vote
    Reply#2 - Sat Oct 29, 2011 4:18 PM EDT
    BXURZ

    I thought that something might be up when first a Qantas airlines flight was diverted back to it's Australian origin due to an overheated toaster one flight,.. and then a second diversion back to Bangkok for 'mechanical' anomalies,..

    Looks like it had to take governmental intervention to keep the business going forward since neither side will give in.

      Reply#3 - Sun Oct 30, 2011 1:41 PM EDT
      sceptical-2486196

      "We will be getting our aircraft back up in the air as soon as we possibly can," CEO Alan Joyce said in a statement within an hour of his court victory 2 a.m. Monday.

      'Victory' is a wildly optimistic description. Mr Joyce will be one of the casualties of the wash out of this.

      • 1 vote
      Reply#4 - Sun Oct 30, 2011 4:17 PM EDT
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