Qantas

On Wednesday 15th May the AFAP met with Jetstar representatives for the first bargaining meeting for a new Enterprise Agreement (EA). The meeting was held in person at Jetstar’s Head Office in Collingwood.

Attending on behalf of the AFAP were JPF pilot representatives Chris Gibson, Dom Corcoran, Ben Bollen, Paul Hogan, Dan Blakemore and Jake Gainger, along with AFAP Senior Industrial/Legal staff Deanna Cain, Pat Larkins and Andrew Molnar.

Attending for Jetstar were Tyrone Simes (Chief Pilot & Head of Flying Operations), Michael Porch (Senior Manager Flying Operations), Leah Everton (Senior Manager Operational Insights & Strategy), Tim Faulkner (Employee Relations Manager - Flying Operations) and Vera Gorgievski (National Operations Advisor).

Network and Financial Briefing

The meeting commenced with Jetstar Chief Operating Officer, Matt Franzi, providing a brief network update which was extremely positive in terms of both Jetstar’s financial and operational performance. Key points included:

• Financially, the airline is tracking toward a record-breaking year, with April delivering the best results on record in terms of reliability and cancellations.
• Operationally, there’s been a clear shift in performance, with the airline out of the media spotlight and safety metrics continuing to improve post-COVID.
• Fleet developments are also significant - 20 A321LRs are now in service (with 5 more to come) delivering strong economics and will become the workhorse for domestic and short-haul international flying. The A320neo is progressively replacing the classics. Meanwhile, Jetstar has committed $130 million to reconfiguring the B787 fleet with enhanced business class and Class 1 crew rest, enabling future long-range flying to potential destinations such as North Asia, the Subcontinent, and Africa.
• Since the end of COVID, Jetstar has added 400 pilots to support this growth.
• The airline’s performance and profitability are likely to draw external attention, and while Jetstar is in a strong position, Jetstar needs to remain alert to competitive threats.
• Strategically, the airline is now in a fleet renewal phase - retiring older aircraft and scaling with more efficient assets.
• Overall, the outlook is one of continued incremental growth, with longer-term network expansion and stability in focus.

Jetstar’s Head of Finance Operations and Reporting, Nick Vouziotis, provided further insight into the airline’s financial performance. He confirmed that February delivered a record result and the airline is on track to achieve a full-year profit peak. Key highlights from the briefing included:

• Fuel prices have eased slightly, dropping from $200 to around $160 per barrel. Despite this, fuel and airport charges still account for approximately 50% of Jetstar’s overall cost base.
• The airline has significant U.S. dollar exposure as a net payer and is managing a projected capital expenditure of up to $5 billion, including new aircraft and fleet investment.
• With demand expected to remain stable, the business emphasis is on maintaining strong cash flow while managing CPI-related cost pressures.

While it is normal to receive these types of briefings at the outset of bargaining, the AFAP appreciated the candour shown by both Matt and Nick. Their narrative was factual and balanced, - something that was noted and welcomed in the context of bargaining.

AFAP EA Survey Results

Thank you again to those members who took the time to complete our recent EA survey.

Approximately 700 (of our nearly 900) members across all bases/ranks and fleets completed the survey which is a significant sample size and representative of over 50% of the Jetstar pilot group. Perhaps the most telling sign of the level of engagement with our survey and the EA process/outcome more generally was the volume and nature of comments in the open text responses.

The AFAP presented an overview of the key survey results to Jetstar representatives at the meeting, which included the following points:

Overall Satisfaction and Priorities:

• There is a very high level of dissatisfaction with the current EA (Overall Net Promoter Score (NPS) of 85.2 (i.e 85% of respondents were detractors/unhappy with the agreement)
• Increased base salary and days off were overall ranked the top two priorities for a new EA.

Salary and remuneration related Items:

• The most preferred option to increase pilot salaries was moving away from a single pay scale to reflect years of service and experience
• The least preferred option to increase pilot salaries was increasing the EFA trigger
• 75% of respondents confirmed their priority was increasing income through guaranteed salary rather than productivity-based payments.
• Only 25% of respondents support the AFAP prioritising pursuing a lower EFA trigger over guaranteed increases to base salaries
• 87% of total respondent do not subscribe to the Company’ consistent position in previous negotiations that pilots will need to pay for a reduction with a lower EFA salary.
• 70% of respondent want to see the ‘good will’ shown from pilots from the previous EAs recognised through increased base pay, only 8% would prefer recognition via lower EFA
• 70% of respondents support moving away from the Mercer Index and industry alignment to Table 8 of the relevant ATO determination for international allowances
• Strong support for Duty RIG (87%) and Trip RIG (55%), though 38% oppose Trip RIG due to triangle/W patterns

Lifestyle Provisions:

• In terms of lifestyle provision, additional days off most frequently ranked as the highest priority, followed by STB/AVAIL protections
• The priority for improving protections around DDOs is no reduction on the 60 hours around 2 DDOs or 84 hours around 3 DDOs, followed by later sign on time following DDO/s
• In relation to star days, the priority is to remain with the current 13 star days but allow for bids of 3 consecutive in a single roster period.

Standby:

• 80% of respondents are willing to offer additional standby in return for standby credits, increased base pay and other protections
• In terms of an alternate STB system, composite STB/flying rosters with an increased monthly cap and a standby credit applying to each standby day ranked number one, followed by annual cap on STB and full roster periods of STB
• Base salary increase was the number one priority for any change to current STB cap
• Most important protection around STB – eliminating displacement from rostered duty following STB/RAS callout including no overnight (multi-day trip) from, a single STB period

Trip Swap and Open Time:

• 60% of respondents support an Open Time system
• Current trip swap system widely viewed as unusable:
• 65% don't use it; 23% indicated their approval success rate <25%).
• Post roster publication 54% of respondents use personal leave if they need time off due to family or other commitments as no other feasible alternative.
• Most desirable feature of an Open Time system: Ability to offload flying.

Part-time Arrangements/VFL:

• 83% of respondents have interest in VFL now or in the future
• Main reason for seeking VFL is greater control over roster/lifestyle (43%)
• 8% of respondents seek VFL to avoid being rostered STB
• 53% of total respondents think it is reasonable for VFL pilots to share STB
• Strong desire for additional part time availability and PT options (i.e PT50)
• 78% of respondents aged 50 and over expressed interest in a Transition to Retirement (TTR) program.
• 62% amongst all age groups, expressed support for having retirement planning pathways available as part of the EA.

Carer’s Provisions:

• Pilots currently on CFL have moderate-high satisfaction with existing carer’s line provisions
• 60% of total respondents would like to see improvements to CFL in a new EA
• Top ranked enhancements to the existing CFL provisions were:
  
  • Ability to guarantee at least one weekend off per month
  • Less overnights / definition of limited overnights
  • Increased access beyond primary age/extended eligibility
  • Ability to apply and transition to CFL at any time during the year.
• Pilots currently on FTCL have moderate-high satisfaction with current arrangements
• 60 % of total respondents would like to see improvements to FTCL in a new EA
• Top ranked enhancements to the existing FTVL
  
  • Ability to guarantee at least one weekend off per month
  • Ability to be granted an FDO on a weekend
  • Less overnights / definition of limited overnights

Limited overnights:

• 71% favour limiting overnights by total nights per month, as oppose to trip length
• The consensus among pilots is that a “limited overnights” should mean no more than 3-4 overnights per month.
• Strong emphasis on clear, enforceable EA definition

Duty Travel:

• On an all economy service, pilots prefer an adjacent empty seat over an extra leg room seat
• On a Jetstar/Qantas service, 49% desire a firm economy seat upgradeable to business class. If not in business class, paid 100% pax credit (hard payment); 24% desire a firm business class seat
• Respondents have little confidence in Jetstar booking a firm business seat on JQ WB service if available at roster publication (average 3.65/10)
• Respondents have slightly more confidence in Jetstar booking an extra legroom seat on a JQ NB service if available at roster publication (average 5/10)

Accommodation:

• Hotel standard is the number one priority for 51% of respondents
• Hotel location is the number one priority for 39% of respondents
• Return to ‘Mercure standard’’ ranked poorly
• General dissatisfaction with hotel standards - many pilots feel current hotel arrangements are substandard, disrespectful, and fatiguing.

Check & Training Pilots:

• Current allowance rates seen as outdated.
• Many note that STPs have significantly higher responsibility yet receive no additional compensation beyond the standard training allowance
• Calls to create a distinct pay scale for STPs and accreditors.

AFAP Log of Claims

The extensive survey responses from AFAP members have been instrumental in shaping the AFAP’s log of claims. Over the past month, the AFAP negotiating team has spent considerable time formulating these claims in consultation with the broader JPF Committee, who have unanimously endorsed the final log.

At the meeting, the AFAP formally presented this 'without prejudice' log of claims to Jetstar, accompanied by a range of comprehensive proposals. As part of the presentation, we provided detailed explanations outlining the basis for each claim and why they are important to our members.

A copy of our log of claims is available here.

As you will see, several claims reference the AFAP’s proposals. We will be providing further details on each of these proposals in upcoming communications so please stay tuned.

Remuneration Package

The AFAP has not yet tabled any specific remuneration-related claims (e.g., base salary increases or other remuneration related items including an enhanced credit system), as we are first seeking to understand Jetstar’s response to our non-remuneration claims and gain clarity on the productivity improvements or changes the company may be seeking in bargaining. Once this is established, we will finalise our position on the remuneration package.

At the meeting, however, we presented detailed benchmarking comparing current Jetstar pilot remuneration with Virgin and Qantas, using realistic and credible like-for-like assumptions to the extent possible.

Key Benchmarking Outcomes:

• Captains: Jetstar Captains earn approximately 21–37% less than Qantas Captains, and around 19% less than Virgin Captains.
• First Officers: Jetstar First Officers earn approximately 35–43% less than their Qantas counterparts, and 17–38% less than those at Virgin.

We made it clear to Jetstar that the overwhelming sentiment from our survey was a strong expectation and desire for remuneration to be closely aligned with that of Virgin and Qantas. We also impressed on Jetstar that it would be difficult for the AFAP to support any final agreement that does not move significantly toward this benchmark.

While we are open-minded and flexible on how alignment can be achieved, the final remuneration outcome must reflect the market reality and expectations of our members.

We also conveyed key themes and sentiment from our survey’s open-text responses regarding remuneration:

• Frustration with Pay Disparity: Pilots consistently expressed frustration that despite performing the same or more demanding work as Qantas and Virgin pilots, they are paid significantly less.
• Same Job, Same Pay: There is a strong belief that Jetstar pilots operate the same aircraft types, fly similar or higher volumes of sectors and passengers, and deal with more operational complexity (e.g., shorter turnarounds, higher BOC flying). They should therefore receive equal remuneration and conditions.
• Workload and Fatigue: Many pilots noted that Jetstar flying is more fatiguing than at competitor airlines—due to more sectors per day, fewer guaranteed days off, and a higher EFA threshold.
• Low-Cost Carrier Model Critique: A widely held sentiment is that the “low-cost” model should end at the cabin door. Pilots argue that safety, responsibility, and professional standards are identical across the Qantas Group and must be equally recognised in pay and conditions.
• Record Company Profits: Numerous comments highlighted the disconnection between record Qantas Group profits and Jetstar pilot remuneration, which remains below industry standards.

We also presented comparisons with Virgin on key conditions, clearly demonstrating that Jetstar pilots are subject to significantly inferior terms and that there is considerable ground to make up.



Overall, the meeting was collaborative and positive. While Jetstar did not provide definitive responses to our claims, they asked thoughtful questions, sought clarifications, and appeared to understand the basis and intent of our proposals.

Although no formal feedback has been provided yet, it is clear the company is supportive of a collaborative approach to negotiations and genuinely committed to progressing discussions efficiently. This commitment is evident in the rostering relief provided to pilot representatives, allowing us to dedicate focused time to the bargaining process.

We acknowledge the Chief Pilot for recognising the volume of work required and for facilitating the preparation time that has enabled the AFAP to be fully prepared—this level of recognition is unprecedented and appreciated.

Meeting with AIPA

As outlined in our last update, the AFAP team reached out to the AIPA negotiators to arrange a meeting prior to bargaining formally commencing, which took place last week. The meeting was constructive and collegial.

We discussed our respective survey results and proposed claims, which were largely aligned. Both unions agreed to exchange our logs of claims following our initial meetings with Jetstar which this has now occured.

Importantly, the AFAP proposed, and AIPA agreed, that neither union would engage in disparaging or undermining the other in any communications. Both unions recognise that Jetstar pilots want to see our collective energy directed towards securing the best possible outcome.

The AFAP and AIPA have also committed to meeting again following the initial rounds of bargaining meetings, to ensure ongoing and regular dialogue as the process progresses.

Upcoming Meeting

The next bargaining meeting with Jetstar is scheduled for the week commencing 26 May, when we expect the Company to present its own set of claims and benchmarking data.

We will continue to keep you informed of developments.

If you have any questions, your pilot representatives are available to assist. Alternatively, you can contact your AFAP industrial officers Deanna Cain, Pat Larkins or Andrew Molnar via email deanna@afap.org.au; patrick@afap.org.au, or andrew@afap.org.au or call (03) 9928 5737.

Finally, if you're not yet a member but would like to receive all of the AFAP’s comprehensive EA updates and gain direct access to our extensive resources, including legal, industrial, Safety & Technical, and welfare support, you can join us here.

Regards,

AFAP Jetstar Pilot Federation Committee
Andrew Ward, Ben Bollen, Chris Gibson, Christo Hailes, Clinton Baxter, Daniel Blakemore, Darren Fielder, Darren Davis, Dominic Corcoran, Ed Greenidge, Jake Gainger, Jordan Moras, Paul Hogan, Raj Krishnan and Michael Dwyer.