Qantas comes back online

AUSTRALIAN flag carrier Qantas kick-started the resumption of services earlier today, after industrial regulator Fair Work Australia ordered a hiatus to its long-running dispute with unions that culminated in the grounding of its entire fleet over the weekend.

The carrier announced on its website that “all domestic and international services have resumed from mid-afternoon on Monday 31 October”, adding that “all domestic (Australia) services on Tuesday 1 November are scheduled as normal” and “all international services are expected to be back to normal by late Tuesday 1 November”.

Qantas’ unexpected full-scale grounding over the preceding 46 hours, which CEO Alan Joyce said was in response to months of strikes by baggage handlers, engineers and pilots, had affected 108 planes across 22 airports, disrupting the travel plans of nearly 70,000 passengers in Australia as well as regional hubs such as Singapore, Hong Kong and Bangkok.

The union-organised strikes, against pay and restructuring plans that would see 1,000 jobs axed and the establishment of two Asia-focused airlines (TTG Asia e-Daily, August 16), have been costing the carrier an estimated A$15 million (US$16 million) per week.

Fearing the grounding would have far-reaching consequences for the Australian economy, the country’s Prime Minister Julia Gillard directed Fair Work Australia to step in to terminate the industrial action.

Qantas and the unions now have three weeks to settle their differences or face a mandatory arbitration decision.

Meanwhile, Qantas is providing full refunds and flexible re-booking options to customers whose travel was affected by the grounding. The carrier is also offering to reimburse affected passengers for reasonable out-of-pocket expenses, including accommodation, transfers, meals and incidentals up to a total value of A$350 per person per day.

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