Jetstar cuts January flights in response to industrial action

Jetstar will slash 800 domestic flights in January and may reduce its fleet size, in a move that would cost up to 50 pilots their jobs.

Jetstar says it is considering selling some off some Boeing 787-8 aircraft. Picture: Richard Gosling

Fallout from industrial action at Jetstar could see up to 50 pilots lose their jobs and another 50 demoted due to a reduction in the airline’s Boeing 787-8 fleet.

The low fares carrier has today flagged the possibility of three 787-8s being sold following a network and fleet review in the face of dwindling profits.

The Australian understands that would mean the loss of as many as 50 pilots while another 50 could be redeployed to less senior roles across the network.

It comes after Jetstar warned it would not give in to pilots’ demands for upfront pay rises it says amount to 15 per cent.

The Australian Federation of Air Pilots has denied they are seeking that much and have urged Jetstar to return to the negotiating table.

Jetstar announced on Monday the cancellation of 800 domestic flights in January, equivalent to 10 per cent of their schedule, to provide passengers with certainty in the face of ongoing disruption.

More than 90 services were axed on the weekend due to four-hour stoppages by pilots on Saturday and Sunday and strikes by ground crew, including baggage handlers.

Combined with the reduced services in January, Jetstar estimated it would lose between $20m and $25m in revenue over the summer holiday period.

CEO Gareth Evans said the wage claims being made by the AFAP and the Transport Workers Union were unsustainable.

“There’s no doubt that industrial action is expensive and frustrating but we have to hold the line on costs or it threatens the long term sustainability of our business,” Mr Evans said.

“We apologise to customers whose plans have been caught up in what the unions are doing.”

AFAP executive director Simon Lutton said they were frustrated by Jetstar “continually inventing figures to suit themselves”.

“Is is highly convenient for Jetstar management to claim that two four-hour work stoppages over the weekend will result in flight cancellations in January when no pilot action is planned past this Friday (December 20),” Mr Lutton said.

“Our aim is to reach a fair and reasonable agreement. It is important that Jetstar returns to the bargaining table to reach a resolution.”

TWU national secretary Michael Kaine said they were appalled Jetstar would “pull the plug” on passengers’ holiday plans.

“With the money Jetstar is spending on cancelling flights and upsetting holiday plans it could have solved this issue by now,” Mr Kaine said.

“Our claims are modest. All the average baggage and ramp worker is looking for is at most an extra 90 cents an hour; that means for many an increase of just $19 a week.”

Weakness in the low cost leisure market has been dogging Jetstar since the May federal election and there has been speculation of a reduction in fleet size for some time.

The review undertaken by the airline identified three 787-8s serving loss-making and marginal international routes, and a business case developed to sell the aircraft.

A final decision will be made early next year with capital from the sales to be reinvested in other parts of the Qantas Group.

Jetstar currently operates 11 787-8s and 51 A320s and A321s.

.