Government Must Regulate Airlines

Date: 16 November 2001

ASU Secretary Michael Want believes that the only way to save Australia's aviation sector is by introducing fares regulation. While Mr Want recognises that many of the current problems facing Australia's airlines result from the effects of September 11, the industry was already spiraling out of control because of unrealistic and unsustainable pricing policies.

"What we have witnessed in Australia's airline sector over the past decade has been disgraceful" said Mr Want. "And as usual the workers have been left to pay the price."

According to Michael Want the collapse of Ansett and the loss of jobs must be blamed on the price wars and government policy where carriers were offering unsustainable prices to attract market share.

"This is a major contributor to the current crisis in the sector," said Michael Want. "We need a central body setting a minimum level under which prices should not be allowed to fall."

Mr Want believes the Federal Government must look at regulating the sector otherwise there will be no Australian airlines left. "No one denies there must be some competition, however when competition leads to denigration of both safety and services then it ceases to be an advantage for anyone."

Mr Want points to the demise of Compass, Impulse and now Ansett to emphasise the Union's position.

Mass meetings of ASU members have voted to call on the Federal Government to regulate the price of domestic airfares. "It is not a difficult process to determine a minimum fare which needs to be charged in order to keep an airline viable - this includes fair and equitable wages and a proper degree of safety," said Mr Want.

"To date, the price wars have only brought smiles to a few happy travellers. They might be quite happy to swap the on-board lunch for a vegemite sandwich but the real costs of running an airline often lies in what cannot be seen - quality staff and safety standards."

"At the end of the day if there's only one airline left then competition doesn't exist."

Mr Want emphasised that the airline sector is a responsibility of the Federal Government. "We saw what happened to the rural sector when Ansett closed it's doors - the government must play a role in setting realistic sustainable prices."

The outcome of this action would be fair competition based on product and service, with income and job security for employees. "This would also flow on to the tourism, transport and the hospitality sectors."

For more information please contact ASU Branch Secretary Michael Want on (02) 9265 8211 or 0409 128 164

For further information

Contact:	Michael Want
Union:	Australian Services Union NSW Clerical & Administrative Branch
Phone:	(02) 9265 8211
Fax:	(02) 9261 2265
Email:	office@asuclerical-nsw.asn.au
WWW:	http://asuclerical-nsw.asn.au/

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