Wednesday, July 31, 2024
Reading Time: 2 minutes
Qantas faces backlash as the TWU accuses the airline of dominating the aviation industry following Rex Airlines’ voluntary administration and job losses.
Qantas, a major player in the aviation industry, has faced criticism for its dominant position following the announcement that Rex Airlines, a regional carrier, has entered voluntary administration. Rex disclosed in a website statement that it had grounded its fleet of Boeing 737 aircraft, suspending all domestic flights between major cities while continuing regional services with its Saab 340 fleet. The statement confirmed that Regional Express Holdings Limited and several subsidiaries within the Rex Group are now under voluntary administration, with Ernst and Young appointed as administrators. This development follows Rex’s suspension of trading on the ASX 200 on Monday, raising concerns about the airline’s future.
The Transport Workers Union (TWU) has strongly criticized Qantas, labeling the airline as a ‘perpetrator’ for its dominant position in the aviation industry. This condemnation follows the announcement that regional carrier Rex Airlines has entered voluntary administration. The TWU argues that Qantas’s market dominance has stifled competition and contributed to the financial struggles of smaller airlines like Rex. The union’s comments come amid growing concerns about the future of regional aviation in Australia, as Rex’s financial troubles highlight the challenges faced by smaller carriers in an industry increasingly controlled by a few major players.
Approximately 360 Rex employees have been laid off, and the TWU has confirmed that 610 jobs will be lost due to the airline’s collapse.
The Australian reports that the company, which expanded to include capital city routes in 2021, was losing nearly $1 million per week between July and December 2023 in its public transport services.
On Wednesday, Shadow Finance Minister Jane Hume criticized the Albanese government for not encouraging competition in the aviation industry and for allegedly favoring Qantas.
The Transport Workers Union (TWU) has vocally criticized Qantas, accusing the airline of being a ‘perpetrator’ in dominating the aviation industry. This accusation follows Rex Airlines’ announcement of entering voluntary administration, which the TWU believes is a direct result of Qantas’s aggressive market strategies. The union claims that Qantas’s dominance has created an uneven playing field, making it difficult for smaller carriers like Rex to compete and survive. This situation has led to significant job losses, with over 600 Rex employees facing unemployment. The TWU is calling for government intervention to ensure fair competition in the industry, protect jobs, and support regional connectivity, which is crucial for many communities. The union’s statement reflects broader concerns about the concentration of market power in the hands of a few major airlines and the potential negative impacts on consumers, employees, and regional services.