Strikes cost Australia's Qantas over 72 mln USD so far

Australia's airline Qantas said on Friday that the ongoing industrial action from the three unions has had a significant financial impact on the company, costing it 68 million AU dollars (72.58 million U.S. dollars) to date. Qantas said in a statement that the financial impact on the company from the industrial campaign being taken by the licensed engineers' union, pilots' union and Transport Workers' Union had reached 68 million AU dollars, higher than the recent volcanic ash cloud, which cost Qantas 49 million AU dollars (52.3 million U.S. dollars). The airline said the uncertainty caused to passengers by the industrial action was costing Qantas an additional 15 million AU dollars (16 million U.S. dollars) a week in lost revenue. Qantas Chief Executive Alan Joyce said the situation was now very serious and impacting both passengers and the company's bottom line. "This drawn-out and coordinated industrial campaign by these three unions is now having a major impact on Qantas," Joyce said in the statement. Joyce said agreeing to the unions' unreasonable demands would have a far greater cost on the company. Qantas estimated the total number of passengers impacted by the passengers impacted by the industrial action since August, including Friday's strikes by the Transport Workers' Union (TWU), is 70,922 from 129 canceled flights and 387 delayed flights. In addition, Qantas had grounded seven aircraft due to ongoing concerns about the reliability of the fleet and a backlog of maintenance due to union action. This had led to the cancellation of 500 flights and the removal of 88,000 seats from sale, Qantas said. Qantas predicted a volatile outlook for the remainder of first half of financial 2012, as it faces the uncertainty in global economic conditions, higher fuel prices and foreign exchange rates, as well as the unfavorable industrial relations environment.