Qantas boss enlists staff for ‘equal treatment’ fight with Virgin

Qantas CEO Alan Joyce appeals to employees to lobby their MPs against giving Virgin Australia anything more than other airlines.

Qantas CEO Alan Joyce has issued a call to action to staff, to try to make sure Virgin Australia gets no extra help from government. Picture: Adam Yip.

Qantas CEO Alan Joyce has issued a “call to action” to employees to lobby their local member of parliament to make sure smaller rival Virgin Australia gets no extra assistance beyond that of other airlines to survive the current coronavirus crisis.

Following on from his remarks on Friday when Mr Joyce said it would be unfair of the federal government to nationalise Virgin Australia, the CEO relayed those concerns to staff.

“Our response on this one is very clear – we think everyone is entitled to a fair go, and if the government is helping, it should help an industry not a particular company,” Mr Joyce said in a conference call.

“Governments aren’t there to pick winners and losers; governments are definitely not there to support a company that’s been badly managed for ten years, and governments are definitely not there to support a company that’s owned by Singaporeans, Chinese, Abu Dhabi and a British billionaire. They are there to do what’s best for Australia.”

Mr Joyce went on to appeal to employees to take up the issue with their local member of parliament, including the Prime Minister Scott Morrison.

“I’d ask all of our employees, because it is in your interest to make sure your member of parliament, if Scott Morrison is your member of parliament, to make it clear that you expect equal treatment for the airlines in this country. It would be outrageous if Virgin and our competitors were supported and Qantas wasn’t,” Mr Joyce said.

“It would be unfair to you, it would be unfair to the country and it would be unfair to the national carrier so I’d ask you for a call for action to make your point very clear to every politician in this country.”

On Friday, Virgin Australia CEO Paul Scurrah hit back at Mr Joyce, saying the current crisis was “not a game of Survivor” and it was in the interests of all involved to work together.

He declined to comment further as the airline continued to review its domestic schedule in the wake of state border closures, taking effect on Tuesday.

Virgin Australia CEO Paul Scurrah. Picture: Liam Kidston.

Both airline groups have been hit hard by the coronavirus crisis, suspending international services and drastically reducing domestic flights.

Mr Joyce announced last week two-thirds of Qantas’s 30,000-strong workforce would be stood down, and 150 aircraft grounded – more than half the fleet.

Virgin Australia has also taken extreme steps to curtail costs in response to almost non-existent demand for air travel.

The carrier is widely considered at risk of collapse in a prolonged coronavirus crisis, with Moody’s downgrading its credit rating to B3 on Friday.

However the Deputy Prime Minister Michael McCormack and Tourism Minister Simon Birmingham have both pledged their support for a “strong aviation industry” in a sign further help could be on the cards, in addition to that announced last week.

The $715m assistance package, dated from February 1 to April 30, offers airlines relief from government charges for things like Airservices, fuel excise and regional aviation security.

Regional Express (Rex) Airlines has urged the government to do more, and warned it will be forced to axe all domestic services other than a few regulated routes in Queensland, if no further support is forthcoming.