Qantas 'matches job trend'

SYDNEY - Qantas' threat to shift 7000 jobs offshore to cut rising labour and service costs would not be out of step with trends in the aviation industry, analysts said yesterday.

However, the timing of comments by chief executive Geoff Dixon were initially interpreted as posturing by the airline. Qantas is in the middle of pay talks with 300 Australian Airlines crew.

The remarks also come ahead of inter-government talks to be held next month to open Australia to more flights from Qantas' biggest regional rival, Singapore Airlines.

"We've got a bit of public posturing going on with the negotiations coming up," Centre for Asia Pacific Aviation managing director Peter Harbison said.

"But this is a constant theme, not just in Australia, but also for airlines around the world."

Dixon said the airline would have to source more of its products and services from overseas markets if it was to remain competitive. Qantas could not afford to remain "all Australian".

The Australian Government will next month hold talks with Singapore Government officials about opening up routes from Australia to the US to Singapore Airlines.

Qantas is firmly against the move, saying this would give its rival an unfair competitive advantage.

But Singapore Airlines regional vice-president, South West Pacific, Paul Tan said Qantas was just trying to protect its "cosy" position.

- AAP