Strike Costs Qantas $68m

The industrial campaign taken by the licensed engineers’ union, pilots’ union and Transport Workers’ Union has so far purportedly cost Australian airline Qantas AUS$68 million (US$72.8m).  Furthermore, the airline says that the uncertainty caused to passengers due to the industrial action is reportedly costing the carrier AUS$15m (US$16m) per week in lost revenue.
CEO Alan Joyce stated that the situation was now very serious:  “This drawn-out and coordinated industrial campaign by these three unions is now having a major impact on Qantas,” he said.
Mr Joyce also pointed out that the financial impact on the airline due to the recent volcanic ash cloud was AUS$49m (US$52.4m).
However, Mr Joyce believes that:  “Agreeing to the unions’ unreasonable demands would have a far greater cost on the company, including risking the future of Qantas.”
The carrier claims that, since August, the total number of passengers impacted by the campaign is 70,922 from 129 cancelled flights and 387 delayed flights.  Qantas has also grounded four Boeing 767s and three Boeing 737s due to ongoing concerns about the reliability of the fleet and a backlog of maintenance due to union action.  According to Qantas, this in turn has led to the cancellation of 500 flights and the removal of 88,000 seats from sale.