1. We're not trying to sidestep IR laws on training: Jetstar
JETSTAR has rejected accusations that its cadet training scheme is a sham designed to evade the Australian industrial relations system and pay trainees in New Zealand dollars.
The Australian and International Pilots Association has written to the federal ministers for finance and workplace relations asking for investigation into whether Jetstar's cadet scheme flouts Australian workplace and tax laws.
The move comes after three cadets from a New Zealand-based training scheme were stood down operationally after they completed their line training. The association says the advanced cadets were asked to go to New Zealand for three days of observational flying, during which time they received Kiwi bank accounts and tax file numbers.
They then did their endorsement training in Britain and their line training in Australia while being paid in New Zealand dollars.
"They've always been resident in Australia, always been flying in Australia, they've never been resident in New Zealand," AIPA vice-president Richard Woodward said, noting that New Zealand legislation prevented the cadets from flying a jet in that country.
one of the cadets was sitting in a Sydney hotel room on allowances and no pay, and another was at home with his girlfriend while they waited for operational clearance.
"It's a total sham," "One of the cadets was bright enough to ring the tax office and say: 'If I'm flying an Australian-registered aircraft and I'm an Australian citizen, should I be paid Australian wages and be paying Australian tax?' The answer was yes, so he was a bit concerned."
Jetstar denied it was not paying the cadets and said it was always the intention to switch the pilots to Australian contracts when their training was completed.
Jetstar spokesman Simon Westaway said cadets were trained by CTC in Hamilton and were on New Zealand individual employment agreements during training. He said cadets were being paid in full while unable to fly in Australia.
He said a delay in the paperwork was because the system was new but future transitions would be "much more seamless". "We hadn't to this time finalised an Australian contract for our cadet program," he said.
Mr Westaway said the cadets had been flying in Australia because the airline's check and training organisation was predominantly positioned here.
2. Air New Zealand raises fares as fuel price climbs
Air New Zealand is to raise its base domestic fares between the main centres by 17 per cent in response to the rapidly rising cost of fuel.
International fares will also rise. The increases are the second in a month by the national carrier.
Domestic and short-haul international fares to Australia and the Pacific islands would rise an average of 7 per cent. Long-haul fares will go up an average of 8 per cent.
However, the cheapest domestic fares between Wellington and Auckland would increase by $10 to $69 one way.
An Auckland-to-Sydney "works fare" goes from $250 to $269 one way. And a return economy ticket to London is to cost $400 more.
Air New Zealand said the cost of jet fuel had risen 14 per cent in the past month to US$130 (NZ$175) a barrel, adding almost US$10 million a month to its operating costs.
Qantas also said this week that it would increase fuel surcharges on international flights again on tickets issued on or after March 17.
The airline said oil and fuel prices were an increasing concern for the aviation industry and its surcharges would not recover the full impact of the latest oil and fuel prices.
3. China Southern announces new China/New Zealand service
China Southern Airlines - a member of SkyTeam and the largest airline in The People's Republic of China will begin three-times-weekly direct air service between Guangzhou and Auckland.
The new service begins April 8 and will use Airbus A330-200 aircraft.
With launch of the new service, China Southern will be the first airline company in mainland China to provide direct air transportation to New Zealand.
Mr. Kevin Bowler, CEO Tourism New Zealand, said that “I see great opportunities for closer tourism links between our two countries. New Zealand currently welcomes more than 123,000 visitors from China each year, making it New Zealand’s fourth-largest visitor market after Australia, the UK and USA. China is also one of New Zealand's fastest growing visitor market and many New Zealand tourism businesses are excited about the future of tourism between our two countries.”
He added that, “developments such as this new China Southern Airlines direct connection between Guangzhou and Auckland help foster even stronger links between China and New Zealand in tourism and in education, and in business, bringing both our countries closer together.”
Mr. Tan Wan’geng, President & CEO of China Southern Airlines said, “As China’s economy continues to grow and exchanges between China and New Zealand deepen, the number of passengers travelling between the two nations is quickly rising. We are pleased to announce that China Southern will launch this new Guangzhou-Auckland service in the 2011 Summer/Autumn schedule with three initial weekly flights and there will be a gradual increase of flight frequency as markets mature.”
He added that, “the aviation marketplace in Oceania where China Southern has distinctive advantages has been of significant importance to our airline. We estimate that by 2015, China Southern will be operating more than 110 weekly return flights to Oceania and offering Oceania connections to Europe, the US, Japan, Korea and the Middle East via our Guangzhou hub with the goal of developing Guangzhou into one of the best transit points for passengers travelling between Oceania and the rest of the world.”
4. New Zealand aviation sector stands firm after earthquake
A post-earthquake message from the CEO of Aviation New Zealand:
The New Zealand aviation industry is deeply grateful for the generosity, sympathy and support they have received from around the world since the Christchurch earthquake of 22 February 2011.
The earthquake was confined to Christchurch and Lyttelton, and many businesses there are already back up and running.
New Zealand remains open for business, and appreciates the continued support of our international and domestic partners – it shows the importance and strength of those personal and business relationships.
Christchurch’s aviation industry comprises aircraft maintenance repairs and overhauls, engine overhauls, aircraft fit-outs, component manufacture and refurbishment, pilot training, ground support equipment, fuel supplies, aviation services, and air transport operators (ranging from airlines to small helicopter operators).
Some aviation industry members in Christchurch suffered extensive or total loss to their homes and, in some cases, their factories.
However, Christchurch Airport opened again the day after the earthquake. After thorough checks of facilities, the Christchurch Engine Centre and major Air New Zealand maintenance base in Christchurch resumed operations. Other companies in the vicinity of the airport are operating normally.
The aviation industry is distributed throughout New Zealand and most of it was not affected by the earthquake.
In terms of practical support for Christchurch aviation businesses, overseas customers should remain in contact with them and continue doing business. The same ‘world-class’ products and services are still available from Canterbury companies.
If you wish to support the people of Christchurch with practical assistance, New Zealand's Prime Minister John Key has launched the Christchurch Earthquake Appeal, a global fundraiser for the recovery effort in the city and the Canterbury region.
In the rest of New Zealand, life and business continue as usual. We are working together to rebuild Christchurch and showcase New Zealand during the Rugby World Cup later in 2011. The biggest sporting event of the year, will kick off as planned in Auckland on 9 September and all matches will be played in New Zealand.
The New Zealand aviation industry will have significant showcasing events throughout the Rugby World Cup. These include vintage aircraft displays in Blenheim, Gore, and Masterton; supply chain seminars in Auckland and a display/innovation event, FLAIR 2011 in Hamilton.
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