New Zealand

Tribunal rules for Qantas over NZ subsidiary

23:21 pm on 6 September 2011

A major pilots union has failed in its bid to have Qantas Airways' New Zealand subsidiary covered under Australian cockpit crew wages and conditions.

Fair Work Australia on Tuesday rejected the Australian and International Pilots Association's (AIPA) application to have pilots flying for Jetconnect covered by the Qantas short-haul pilots' award. AAP reports.

The majority decision, written by senior deputy president Justice Boulton and commissioner Peter Hampton, found Fair Work Australia had no basis to rule on AIPA's application.

Qantas set up Jetconnect as a wholly owned New Zealand-based subsidiary in 2001 and it flies a number of routes across the Tasman using Boeing 737 aircraft leased from Qantas and carrying the airline group's QF carrier code.

Pilots, cabin crew and other staff are hired in New Zealand and paid under New Zealand wages and conditions. Jetconnect has its own Air Operators Certificate issued by the Civil Aviation Authority of New Zealand.

The union estimates pilots employed by Jetconnect are paid about 30% less than a pilot of similar seniority and rank working for Qantas in Australia.