Qantas critics 'playing safety card as a tool of industrial relations': Alan Joyce
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Version 0 of 1. The Qantas chief executive, Alan Joyce, has accused critics of “playing the safety card as a tool of industrial relations” and argued that changes to the Qantas Sale Act would not subject passengers to greater danger. Joyce’s testimony to a Senate committee hearing on Tuesday night came as the airline hit back at dramatic claims, aired last week, that passengers had been put at risk by a failure to properly secure three engines on a Qantas plane after maintenance conducted in Hong Kong in 2008. Joyce also told the committee he believed he had the unanimous support of the Qantas board but he had not spoken to each member individually. He brushed off questions about taking personal responsibility for presiding over a big decline in the share price, instead blaming the operating environment with major competitors being subject to different laws. The Senate economics legislation committee was investigating the Abbott government’s proposed legislation to abolish part three of the Qantas Sale Act, which imposes a 49% cap on the total foreign ownership of the company. This section of the act also requires that facilities, including maintenance and catering, used by Qantas in the provision of international services are principally located in Australia. Joyce began his testimony by saying the changes were needed to “level the playing field” with key competitor Virgin Australia, which had gained from injections of foreign capital, before turning his attention to union concerns about the safety of offshore maintenance. “We have seen a line being run by the unions that the prospect of repealing section three of the Qantas Sale Act will have negative safety implications. This is blatant fear mongering,” Joyce said. “It is playing the safety card as a tool of industrial relations.” Qantas issued a statement on Tuesday to address the Hong Kong maintenance case referred to by the Australian Licensed Aircraft Engineers Association (ALAEA). The airline said the issue related to washers, not bolts. One engine had three of the eight washers installed upside down while two engines had one washer installed instead of two on the bolts, the company said. Qantas “categorically rejected” suggestions the safety of the aircraft was at risk “as a result of what was a minor maintenance issue”. “The claim that the engines could have fallen off the aircraft during the flight as a consequence is false and alarmist,” it said. Joyce told the Senate committee that Qantas had an “absolute” commitment to safety and an “exemplary track record”. He said the majority of Qantas’s maintenance was done in Australia, but A380s and B747s were maintained overseas. “As always in aviation, there are multiple failsafes to account for the very small likelihood of human error. Suggesting that any mistake is a potential catastrophe is alarmist and deeply irresponsible,” Joyce said. The ALAEA federal secretary, Steve Purvinas, who raised the safety fears about the Hong Kong case, told the committee on Tuesday night that he still held concerns about oversight by the Australia’s Civil Aviation Safety Authority. Purvinas said maintenance conducted in Australia was subject to more supervision than in Asia. He said there was a “different culture” in relation to reporting of safety issues and fears of staff not having their contracts renewed. The Coalition government is unlikely to secure Senate support to remove the 49% foreign ownership cap on Qantas and the requirement for operations to be mainly based in Australia, with Labor and the Greens opposing the legislation. Tony Abbott has argued Qantas must be freed from the “shackles” of the Qantas Sale Act to compete on a level playing field, but its international operations would remain subject to a 49% foreign ownership cap under the Air Navigation Act. Senators questioned Joyce about the prospect of restructuring Qantas into a majority foreign-owned domestic operation and a majority Australian-owned international business. He said Virgin had the flexibility to site its heavy maintenance and call centre operations offshore and could attract foreign capital, and Qantas should gain the same flexibility. Qantas has already announced plans to cut 5,000 jobs as part of a $2bn cost-saving drive. Joyce did not respond directly to questions about the prospect of further cuts, and sending more jobs offshore, if the changes to the Qantas Sale Act passed the Senate. “It’s hypothetical,” said Joyce, who took a similar position when fronting a separate Senate committee hearing about Qantas on Friday. “I’m not going to rule anything in or anything out.” |