APA says the new "Keep Jetstar Australian" rules will prevent Jetstar’s expansion
Airline Partners Australia Director David Coe has warned that any proposed new rules to keep the catering and maintenance operations of Qantas and its subsidiaries in Australia could stop Qantas owned low cost carrier Jetstar from expanding.
Mr Coe told a Senate hearing in Canberra that the Qantas Sale aka Keep Jetstar Australian Amendment Bill was unnecessary and there were existing laws, government policies and a deed of undertaking by the Airline Partners consortium that endured jobs and operations by Qantas and Jetstar remained in Australia.
He added, “The legislation could have the unintended intention of fettering Jetstar’s ability to grow,” adding, “You are not creating a level playing field if Virgin Blue or any other designated international carrier is not subject to the same constraints, it’s not a fair and level playing field”.
Mr Coe told the inquiry that the consortium could only commit to obligations during the term of their ownership and could not be responsible for the actions of future Qantas owners with he and two Qantas representatives saying that although Jetstar was not covered by the Qantas Sale Act, the Air Navigation Act ensured Jetstar’s ownership and operations would be Australia-based as long as it flew international routes from Australia.
Family First Senator Steve Fielding introduced the private member’s bill last month, with Airline Partners’ deed of undertaking with the government containing a series of obligations on the consortium in order to reduce support for Senator Fielding’s legislation.
Report by The Mole
John Alwyn-Jones
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