Qantas overcharges to lose business

QANTAS is allegedly charging higher prices for ground handling than it needs to in a dedicated attempt to drive away business.

According to Tony Sheldon, national secretary of the Transport Workers Union, by shedding itself of business, Qantas will be able to cut jobs and outsource ground services to lower-paid contractors and actually end up saving money.

“Whoever heard of putting up prices, especially this much, in the middle of a recession?” he said.

Over the last half a year, Qantas has lost business from Etihad, its own subsidiary Jetstar and Philippine Airlines (from 16 May) by increasing prices by 30 per cent.

A Qantas spokesman, Joe Aston, said that Qantas had “adjusted our rates to be more in line with commercial prices”. Previously it had provided ground services at cost price.

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