CANBERA (dpa-AFX) - Australia's largest airline Qantas Airways Ltd. (QUBSF.PK) Saturday grounded all of its flights due to a deteriorating labor strike, media reports said.
The news comes as a big embarassment for the Australian government headed by Prime Minister Julia Gillard as she hosts the Commonwealth summit in Perth, with departure plans of 17 heads of state thrown into disarray. The 17 leaders had planned to travel on Sunday with the strike-hit aviation company, and are now being aided in flying out on other flights.
Qantas will see its domestic and international flights suspended until Sunday at the earliest.
Meanwhile, Fair Work Australia, the Australian government's industrial relations institution, has urged an end to the strike. Judges who heard Qantas' views on the strike have adjourned proceedings until Sunday.
It is reported that about 108 aircraft of Qantas were grounded in 22 airports globally, and travel plans of thousands of passengers have been put into peril.
Qantas' Unions comprising engineers, baggage handlers and pilots have been at loggerheads with the company over its plan to form two Asia-based airlines to boost growing demand in that region and reduce costs.
As part of its 5 year restructuring plan, Qantas also plans to cut 1,000 jobs and order new Airbus planes costing in billions of dollars, in a bid to resuscitate its unprofitable international operations, which has been hit a number of problems such as earthquakes, floods and engine trouble. Qantas also feels the Unions pay claims as being unreasonable.
The strike until now has cost the company about A$68 million.
Copyright RTT News/dpa-AFX