Qantas pilots’ pay deal to pave way for 787 Dreamliner fleet

Qantas has agreed to a pay deal with its 1300 long-haul pilots, paving the way for purchase of a fleet of Dreamliners.

Qantas has agreed to a critical pay deal with its 1300 long-haul pilots, paving the way for the airline to buy of a fleet of Boeing 787 Dreamliners by bolstering its balance sheet with an 18-month wage freeze.

The enterprise bargaining agreement, which the Australian and International Pilots Association recommended to members, looks to mitigate the pay freeze with a 5 per cent one-off bonus. It then provides for 3 per cent annual wage rises.

And in a significant move, it outlines terms and conditions for the introduction of the new-generation, fuel-efficient Boeing 787-9s.

Of the 1165 pilots’ union members eligible for the vote, 82 per cent were in favour of the deal, which will now be presented to the Fair Work Commission. “This is good news for the business and for our long-haul pilots,” said chief pilot Dick Tobiano in a message to colleagues yesterday. “As we have said along the way, there are several things that we need to build a strong business case for new ­aircraft coming into Qantas International. This agreement is a significant part of that.”

Qantas has options and purchase rights on 50 Boeing 787-9s at a heavily discounted price ­negotiated with Boeing.

However, the airline has said it wants to pay down $1 billion in debt and return to profitability before it completes the deal.

Captain Tobiano said: “We are also strengthening our balance sheet and ensuring that the business can generate an appropriate and sustainable financial return if we invest in these new aircraft,” he said.

Qantas has also negotiated a flexible order stream for the 787-9 planes, which burn less fuel per passenger and are bigger.

Last month, Mr Joyce said the pilots’ pay deal would make sure the Qantas International business case worked for the future.

“It is a significant move, the first time ever that they’ve put in an arrangement that’s a different arrangement for the new aircraft type,” he said. “That makes that a very productive arrangement going forward and we shouldn’t underestimate the size and the importance of this agreement with the pilots.”

However, while yesterday’s deal had the union’s backing, the “yes” vote was not a foregone conclusion.

Last week, short-haul flight attendants voted down a proposed enterprise agreement, which would cover up to 1600 staff and was endorsed by the Flight Attendants Association of Australia.

It’s understood the sticking point might have been a plan to broaden the bases that have ­access to the coveted Perth-­return route.

The 18-month wage freeze ­accepted by pilots has been part of 13 other enterprise agreements covering 7500 Qantas staff.