Pilots at Qantas’ unit halt planned two-day strike

Qantas planes are seen at Kingsford Smith International Airport in Sydney, Australia, March 18, 2020. REUTERS/Loren Elliott/File Photo Acquire Licensing Rights

Oct 31 (Reuters) – Pilots at Network Aviation, the charter subsidiary of Qantas Airways (QAN.AX), would not go ahead with a planned two-day strike this week, the Australian Federation of Pilots (AFAP) said on Tuesday.

AFAP on Friday said that Network Aviation pilots will stop work on Wednesday and Thursday in a bid to negotiate wages.

Qantas said it had put contingency measures in place, including using aircraft from the wider Qantas Group and other airlines to replace services that would have been impacted.

“It is too late to unwind these contingency plans so changes will stay in place,” the company said on Tuesday.

Qantas shares rose 2.6% to A$4.93 as of 0357 GMT.

Australia’s industrial relations tribunal, the Fair Works Commission (FWC), presided over a series of talks between pilots and the airline on Monday.

AFAP members – who make up 90% of the pilot group at Network Aviation – won’t be engaging in protected action until next week’s bargaining sessions are completed, the pilots’ union said.

The union will attend in-person bargaining sessions facilitated by the FWC from Nov. 7.

Meanwhile, Qantas expressed disappointment over the union choosing to “cause disruption and uncertainty” by threatening the strike, a few days before a meeting with the FWC.

The halt of the strike is unlikely to be the end of the story given the gulf that still exists between the parties, Tim Waterer, chief market analyst at financial trading platform KCM Trade, said.

Qantas is committed to exploring all reasonable avenues to make an agreement to benefit pilots and meet the needs of the business, the flag carrier said.

The airline will continue to work with the FWC over coming weeks to seek a resolution, it added.

FWC did not immediately respond to a Reuters request for comment.

Reporting by Rishav Chatterjee in Bengaluru; Additional Reporting by Ayushman Ojha; Editing by Mrigank Dhaniwala and Rashmi Aich

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