Talks drag on as pilots ponder a Sunrise long-haul deal

Qantas pilots have questioned whether the Project Sunrise business case stacks up.

Qantas CEO Alan Joyce speaks to student pilots at the new training academy in Toowoomba.

Qantas pilots have suggested that if the Project Sunrise flights hinge on a new pay deal with them, then perhaps the business case is too flimsy in the first place.

A decision on the ultra-long-haul flights between Australia’s east coast and cities like London, New York and Paris is due in March, with pilots in ongoing negotiations with the airline.

A new short haul agreement that delivered a 3 per cent a year pay rise and 50 per cent increase in sick leave was approved this week by 61.5 per cent of pilots.

The deal had been endorsed by the Australian and International Pilots Association, which president Mark Sedgwick believed was key to it getting across the line.

He said they would now focus on finalising a long haul agreement which would include Project Sunrise flights but warned there were still many issues to resolve. “Certainly we’re not in agreement at the moment in the long haul space, not at all,” Mr Sedgwick said.

“We did a deal in 2015 to assist Qantas with acquiring new aircraft (B787-9s) but I don’t think that’s something you can do every time you’re looking to refleet.

“We don’t believe these multi-billion-dollar investments hinge on pilot paying conditions. If they truly did then perhaps they’re too marginal to consider in the first place.”

He said the end of March deadline for a new deal was realistic but the parties would “have to be pretty heavily aligned” for that to occur.

“At the moment we’re not in agreement and the feedback we’re getting from pilots who’ve seen what the company is offering is that potentially there may not be an agreement there but we will keep working,” said Mr Sedgwick.

“We think the sentiment is they’re feeling a little bit disengaged from the company and where it’s trying to go to, which is particularly crucial at a time when you’re trying to convince pilots there are growth opportunities but you’re asking them to make some sacrifices for that.”

Speaking in Toowoomba this week at the official opening of the first Qantas pilot training academy, Alan Joyce said he was very hopeful of reaching a deal with the pilots in March and placing an order with Airbus for new A350-1000 aircraft.

“What’s happening with the bushfires, what’s happening with coronavirus is a reason why Qantas has to be disciplined,” Mr Joyce said. “We’re not going to be offering anything above (3 per cent a year). We’ve made that clear.”

He said the A350-1000s were offered to Qantas at an “amazing” price following a “fair and aggressive competition” between Airbus and Boeing. “At the end of the day the A350 won for a number of reasons,” said Mr Joyce.

“Airbus is modifying with an extra fuel tank and higher maximum takeoff weight for us. It can do the missions that we want with good economics and the price of the aircraft, which obviously has a big impact on the economics, was very attractive.”

The prospect of pilots being able to operate both A330s and A350s in the Qantas fleet was something both the airline and AIPA were keen to explore.

“AIPA is certainly supportive of its pilots doing multi-variant flying. It’s how that gets incorporated and valued in an overall package that is crucial for the pilots,” Mr Sedgwick said.