AVALON’s Jetstar operations are under threat as Qantas flags losses of up to $300 million for the second half of this year and 1000 job cuts across the country.
Avalon faces some 230 job losses as the Qantas discount carrier admits to heavy discounting to fill seats and under-performing as a result.
Victorian Premier Denis Napthine told new crews this morning the State Government would spend “many millions of dollars” to keep Jetstar at Avalon and help stave off a local economic impact of some $87 million.
Qantas’ share price tumbled 15 per cent on the back of the reports.
“The outlook for the second half of FY14 remains volatile and, given the uncertainty in global economic conditions, fuel prices and foreign exchange rates, it is not possible to provide further guidance at this time,” the airline said in a statement.
The latest blow to Geelong’s fortunes follows a warning by Ford on its product development operations future unless the Federal Government’s comes up with more handouts. The R&D arm was to remain after the closure of the car-maker’s manufacturing operations in 2016 but now appears vulnerable.
The Jetstar strife comes as Premier Napthine visits Geelong to announce projects including $50.2 million to a community hospital at Waurn Pond and $500,000 to dredge of the Barwon River to safeguard local rowing events.
Mayor Darryn Lyons foreshadowed a crisis meeting tomorrow morning to consider the Jetstar situation and welcomed the government contribution but called on Avalon to commit to helping keep Jetstar going as well.
“I’d like to see the owner/operator at Avalon come to the party too and match what the State Government puts up,” Cr Lyons said.
“Avalon Airport has had a huge amount of help from the City of Greater Geelong and this is about jobs and jobs stability.
“Jetstar needs to look seriously at its flight times too. It’s not an easy schedule and they have to invest more strategically and provide flights when people want to use them.”
The Federal Government has focussed sharply on Geelong in recent days, announcing grants of some $8 million towards the Golden Plains Food Production and Employment Precinct at Lethbridge, the Geelong Centre for Emerging Infectious Diseases, works at Torquay’s Banyul Warri Fields and the Meredith Integrated Community Hub.
_ noel.murphy@geelongindependent.com.au
WHAT QANTAS SAYS: www.asx.com.au/asxpdf/20131205/pdf/42lf195c6j7ss1.pdf
