Qantas chief defends controversial Asia overhaul

The airline has faced a firestorm of criticism over the revamp that will see 1,000 jobs slashed as part of its new emphasis on Asia, aimed at staunching heavy losses from its international business.

"Under my leadership, Qantas will not withdraw into itself as our detractors would like us to do. Doing so would condemn Qantas to irrelevance and inevitable decline," the Irish-born Joyce wrote in The Australian.

His fighting talk saw the company's share price jump 3.28 percent to Aus$1.57 in a generally bullish market, recovering from a slight dip on Tuesday when the news was released.

As part of the plan, Qantas will spend US$9.5 billion on new planes and team up with Japan Airlines and Mitsubishi Corp. to launch a new low-cost domestic airline, Jetstar Japan.

It will also set up a joint-venture premium airline based in Asia and strengthen its code-share partnership with British Airways, which will carry more passengers between Qantas's Asian destinations and Europe.

Furious unions have warned of strike action, accusing Qantas of outsourcing jobs while threatening the company's iconic Australian image.

Tony Sheldon from the Transport Workers Union said ballots were now being taken on industrial action and he expected support from fellow unions in the United States, Britain and Southeast Asia.

"I'm confident that those countries will take actions in support of the actions that ourselves, our members, other unions decide to take over the coming struggle with Qantas," he said.

Sheldon added that it was essential to "keep the brand alive, to save the company from itself and save decent paying jobs in this country".

Joyce, who previously worked at Irish carrier Aer Lingus and the now-defunct Ansett Australia, accused the unions of "trashing the Qantas name".

"They're continuing to make false accusations about Qantas offshoring which is not true, about safety concerns about Qantas, which is not true, and they're continuing to make false accusations across the board," he said.

"That's not good for the 30-odd thousand people employed by the company ... we don't need the unions continuing to trash Qantas because this will damage their jobs."

He added that Qantas was one of the biggest employers in Australia.

"Of the 1,000 positions that will be made redundant, not a single job will be lost as a result of Qantas's plans to invest in a new premium airline in Asia," he said.

"Some of the numbers being quoted today by union leaders -- of between 5,000 and 10,000 jobs affected -- are completely unfounded."

In a series of television and radio interviews, Joyce added that the company could no longer afford to operate a loss-making international arm, and switching focus to the growth region of Asia was a sound business decision.

"Comprehensive reform is needed, but contrary to the hysterical claims made by a number of unions, this is not an 'attack' on the Qantas brand or 'destructive' for its future," he said.

"It is about making smart decisions that take a great Australian company further into the growth markets that are leading the world economy."

Joyce said the alternative was the airline dying a slow death.

Qantas has been grappling with disasters and surging fuel costs and Joyce has previously estimated that the company's international operations will record a loss of Aus$200 million (US$209 million) before tax this year.

Copyright AFP (Agence France-Presse), 2011