Qantas to shed almost 300 jobs as it closes its Avalon maintenance facility near Geelong

Updated

Sorry, this video has expired Video: Qantas to close heavy maintenance facility at Avalon (7pm TV News VIC)

Qantas has announced it is closing its Avalon heavy maintenance facility near Geelong in Victoria, resulting in the loss of 300 jobs.

The airline has confirmed that the plant, which maintains its ageing fleet of Boeing 747s, will close by the end of March.

It said 53 Qantas employees and 246 contractors would be affected.

"We're gradually retiring our 747 aircraft, which means there's just not enough work to keep the base at Avalon viable and productive," Qantas Australia chief executive Lyell Strambi said.

Avalon: Key facts Boeing 747 heavy maintenance base

Commenced operation on May 13, 1998

One of the largest aircraft engineering and maintenance organisations in the Asia-Pacific region

Employs approximately 900 people

Three out of six hangars are customised for Boeing 747 use by Qantas

Was the airline's only 747 heavy maintenance base in the world

But Qantas is now moving away from Boeings, towards Airbus aircraft

"Over the next four years there are 22 months with no scheduled maintenance at Avalon for our 747 aircraft. During this time there will be no aircraft in the hangar for our employees to work on."

"When it comes to Avalon the facts are clear, we cannot keep running a facility that is inefficient now and will become more and more unviable into the future.

"That simply would not be responsible, nor would it be in the best interests of the Qantas group as a whole including the 30,000 employees across Australia."

The job losses come after 250 workers were made redundant at Avalon facility earlier this year.

Qantas says it didn't want a series of government hand-outs to keep the plant open

But Mr Trambi dismissed suggestions the closure was part of a long-term move to base the airline's maintenance operations in Asia.

Sorry, this video has expired Video: Qantas Australia CEO Lyell Strambi speaks to reporters (ABC News)

"I think that's a nonsense notion, actually," he said.

"We still have around 4,500 engineers. It's an enormous operation still that we have within Australia. And of course there are a lot of things that you must do always at your home base."

He said the Federal and Victorian governments had both offered assistance to keep the site open but said the closure was a "structural" decision.

"While we could go to the government looking for a handout, then we would be going back to the government the following year for another handout, and the following year," he said.

"We don't want to get into that cycle because I don't think it does the right thing by Qantas, nor does it do the right thing by the government and the people of Australia."

Workers 'furious' and worried there is no market for their specialised skills

Peter Ryan has been working at the Avalon maintenance facility for the past 15 years and he has decided to move out of Geelong.

"I think we're all going to struggle to find work after this. And I guess I'm the lucky one who's been in numerous industries," he said.

"There's a lot of people in there that have only worked in this industry. So I guess they'll hurt."

"At the end of the day it's not our fault. We've done nothing wrong."

Ben Davis from the Australian Workers Union says staff at Avalon are bitterly disappointed.

"We started getting phone calls as soon as management texted them to call them into a meeting [this morning]," he said.

"They're gutted and just devastated but they're furious with Qantas, and well they should be.

"They work in a very specialised trade and a very specialised profession. They will struggle to find employment in their industry in Australia."

Federal Member for Corangamite Sarah Henderson said the closure was a "black day" for Avalon and the Geelong region and called on Qantas to commit to maintaining its Jetstar operations at the Avalon airport.

"It's a very devastating day," she said.

"There are another 90 jobs out there with Jetstar. We want to see Avalon airport grow. Frankly, this has a great potential as a jobs hub, as an infrastructure hub over the next 10 years."

Victorian Premier Denis Napthine says he is "extremely disappointed" about the job cuts but there is not much his Government can do.

"We've been working with Qantas for some time, fighting hard for those jobs ... but there is a clear decision from Qantas, which is a decision of Qantas that they explained to us, that there is a changing airline industry."

Unions spoke to airline for two months before today's announcement

Earlier, Steve Purvinas from the Licensed Aircraft Engineers Association said unions had been in talks with Qantas for eight weeks.

"They've put all these problems before us that are going to prevent them from keeping Avalon open," he told ABC Local Radio.

"We believe we've more than adequately answered all of those concerns that the airline have had.

"I got a letter late last night from Qantas saying they have rejected all of our proposals. It looks almost certain that they're going to close this facility sometime next year, which is a real shame."

Mr Purvinas expects some of the jobs to be relocated to a maintenance centre in Brisbane.

"But they cannot fit it in there. They're already about 500 people short-staffed in that facility. So the work is going to go offshore," he said.

"We know Qantas regularly use offshore facilities in Singapore, Hong Kong and the Philippines."

Topics: business-economics-and-finance, work, air-transport, unions, geelong-3220, vic, australia

First posted