Chapter 2Key issues
2.1This chapter outlines key issues raised by individuals and organisations affected by Qantas' decision to close staff bases in Canberra, Hobart and Mildura, including:
impacts on individual pilots and crew affected by the decision;
impacts on affected communities;
Qantas' consultation and decision-making process; and
potential impacts on regional aviation networks.
2.2The also chapter considers evidence from Qantas responding to these concerns.
Impacts on individuals
2.3The decision to close staff bases in Canberra, Hobart and Mildura impacts 71 individuals, of which 38 are flight crew (pilots) and 33 are cabin crew (flight attendants):
Mildura—five pilots and three cabin crew;
Hobart—17 pilots and 15 cabin crew;
Canberra—16 pilots and 15 cabin crew.
2.4Following a period of consultation and negotiation, Qantas has offered a package of conditions and benefits designed to support employees to either relocate to a major base, or commute from their current home cities. A majority of these employees (at least 42) do not wish to leave their homes. According to Qantas:
of the 38 pilots, 13 have chosen to relocate, 23 have elected to commute, and two have not yet decided; and
of the 33 cabin crew affected, 10 have decided to relocate, three will commute as Qantas employees, 13 will transfer to Qantas 'long haul' while staying in their home cities, three have decided to leave the business, and four have not yet decided.
2.5Those who were undecided were required to decide by the end of 2025.
Cabin crew
2.6Cabin crew affected by the decision were represented by the Flight Attendants' Association of Australia (FAAA), which surveyed affected members. Eighteen cabin crew responded to the survey, and of the 18 respondents:
11 have lived in their region for over 20 years;
12 own their own homes;
10 have partners who own local businesses;
eight care for elderly parents; and
six care for children with disabilities.
2.7Federal Secretary of the FAAA, Ms Teri O'Toole described these members as 'pillars of their communities', saying:
We have members such as Paul, a foster carer for vulnerable children. We have Catherine, whose child relies on a specific local team of therapists for a disability; and Natasha, the sole supporter for two parents in their eighties. For them, relocation was not a choice and it was impossible. We have Michelle, a proud Indigenous woman, whose daughter and grandchild moved to be on country and close to her for support. She describes her base not just as a job but as her forever home.
2.8The FAAA would have liked Qantas to reverse the decision, but believed this to be impossible, so focused its efforts on securing the best deal for its members.
2.9For some of its members, both moving and commuting posed unreasonable challenges. As such, the FAAA negotiated 'alternative redeployment options' for these employees, such as moving to different roles in their local airport, or a Qantas contact centre, or moving to Qantas' international section (long haul), 'where the ability to commute was easier'.
2.10Noting that this 'business efficiency measure' represents a 'personal catastrophe' for many of these employees, Ms O'Toole outlined the benefits the union was able to secure for its members through negotiations with Qantas, which include:
for those who are 'forced to resign', a separation payment of $20000;
for those who choose to commute:
$36400 in allowances paid at $700 a fortnight for a period of two years;
two years of 'duty travel' (airfares) from their home bases; and
'roster protections' to minimise time away from home and single days off;
for those who choose to relocate, a $36400 lump sum payment to cover the 'real cost of moving'—'bond, stamp duty, setting up a new life', along with paid leave 'to view properties and assistance from the Qantas Global Mobility team'; and
support for regional crew transferring to Qantas long haul roles, to cover accommodation during their initial training period.
2.11Ms O'Toole highlighted the emotional and psychological toll the decision has taken on staff who have worked together for years, saying, it's 'almost like a family breaking up'. Employees are stressed about the financial impacts of moving to a more expensive capital city, and many are unable to move for other reasons. For instance, one has animals that cannot be relocated, and one just secured a first home buyer's mortgage in the ACT, which requires you to live in the property for at least 12 months.
2.12While the benefits achieved by the FAAA for its members were better than most were entitled to under their enterprise agreements, Ms O'Toole emphasised that the agreed package is for a two-year period, 'which is really a reprieve to give them time to actually make decisions and think about what they want to do with their future'.
2.13The FAAA was also concerned about how the commuting will work in practice; for instance, what will happen if a crew member cannot get to their new base on time due to a flight cancellation? According to Ms O'Toole, this information has not yet been provided.
Flight Attendants' recommendations
2.14The FAAA would like to see the decision overturned. However, if that is not possible, it recommended:
ongoing assistance—beyond two years—to enable those who have chosen to commute to continue to do so;
flexibility for those who have chosen to commute to change their mind (and still access the separation payment) if doing so proves to be too onerous; and
a guaranteed right to negotiate on rosters going forward, particularly after some time has passed and employees have a sense of how the rosters are working.
Pilots
2.15Pilots affected by the base closure decision were represented by the Transport Workers Union (TWU), some gave evidence to the committee in private session, and one pilot made a name withheld submission.
TWU evidence
2.16Director of Organising at the TWU, Mr Sam Lynch, told the committee that the employees affected by this decision 'are real people and have real lives'. These workers have families, children in schools, and partners with businesses in the local area. In particular, Mr Lynch highlighted the fact that some of the pilots affected by these closures were forced to relocate from other cities a few years ago when other regional bases were closed by Qantas.
2.17The TWU submitted:
When Qantas announced that it was 'reviewing its footprint' in Hobart, Canberra and Mildura bases, it had only recently endorsed movements of pilots to any base of their choice on the premise that all bases would continue operating.
2.18According to Mr Lynch, at that time employees were promised 'that they could have a long-term career in Hobart in particular, only to a few years later find out they were once again being relocated'.
2.19The TWU surveyed pilots and submitted that one-in-five has previously been affected by Qantas base closures, one-in-two Hobart pilots have children under 18, and 68 per cent of those surveyed 'will consider other employment' as a result of the decision.
2.20Mr Lynch was keen to highlight the significant impact Qantas' decision is having on these employees, saying:
Although we can talk about what a relocation package might look like or what even a redundancy might look like, at the end of the day these are people's lives and you can't really put a dollar figure on that.
2.21The TWU shared deidentified quotes from affected pilots, who said:
I will be forced to choose between my job and children. Leaving Hobart will mean no longer seeing my children.
…
It would split my family up. My partner will not leave Canberra, and I would have to leave my son.
…
After the Perth closure we had two options, Canberra or Melbourne. We got Canberra, and we have rented here for three and a half years due to the uncertainty … We finally bought a house in December 2024.
…
After promises that bases were safe, this is a swift kick in the guts. Families have made major financial decisions based on assurances from management.
2.22According to the TWU, Qantas is not currently offering redundancies for affected pilots, and TWU members have indicated that the 'current offer is not ideal'. Mr Lynch said the TWU's members would like the decision reversed to 'allow these workers to keep doing what they love doing, and that's working for Qantas in the town they live in'.
2.23The TWU's other recommendations are outlined further on this chapter.
Evidence from affected pilots
2.24Pilots impacted by the decision gave evidence in camera (private session) to assist the committee to better understand the range of impacts on this cohort. To protect the identity of these pilots, their evidence is deidentified, is used here in a general sense, and is not referenced. In addition, one pilot made a name withheld submission to the inquiry.
2.25The decision to close staff bases in Canberra, Hobart and Mildura is impacting pilots who have lived in these places for many years, as well as those who have recently moved to one of these locations.
2.26One of the pilots who gave evidence told the committee that he had moved to one of the impacted areas as part of a 2024 Qantas program designed to improve staff morale by allowing pilots to nominate a base they would like to move to. At the time, the pilots who took up this offer were told there was 'no intention to change the base footprint'. After buying and renovating a house, the pilot explained that receiving the news the base would now be closing was devastating.
2.27Another pilot who appeared in camera is a long-standing member of his community, as are most of the pilots impacted by the closure of his base. He admitted being surprised that the decision had not been made earlier, such as following the COVID-19 pandemic, when the airline made a number of consolidation decisions. When the base survived that era, he had hoped it was safe from closure.
2.28The pilot who made a name withheld submission explained that they have worked for National Jet Systems (NJS)—a Qantas Group subsidiarity— for over 13 years. This pilot observed that, over time NJS has gone from a largely regional employer to one centralised in Australia's three largest cities.
2.29The submitter provided the following timeline of changes to the NJS employment locations:
Darwin:
Downsized in 2016
Closed in 2018
Cairns:
Downsized in 2016
Expanded in 2017
Downsized in 2018
Closed in late 2020
Perth
Expanded in 2018
Closed in late 2020
Melbourne:
Opened in early 2021 (with most staff relocated from Cairns and Perth)
Canberra & Hobart
Both opened in 2015
Both to be closed in 2026.
2.30The submitter noted that 'some crew and their families have been involuntarily displaced more than once within a period of a few years', which has significant impacts on mental health and family finances.
2.31According to this submitter, Qantas has a habit of closing bases, then later resuming operations 'by utilising a different subsidiary or contractor with a similar size aircraft type':
Despite Qantas continuing to serve these locations, it is not easy for crew to transfer between business units to stay in their desired location. Additionally, if a crew member changes between Qantas owned subsidiaries it can come at the expense of rank and seniority. If the desired location is subsequently serviced by a contractor and not a Qantas owned subsidiary, not only would the crew member possibly lose rank but forgo accrued benefits such as long service leave.
2.32Noting many of the affected pilots are over 50, one pilot talked about the daunting prospect of starting a new life, in a new city, when some are just a few years off retirement. He said Qantas' offer for relocation assistance does not account for the discrepancies in house prices between these regional locations and places like Sydney, Melbourne and Brisbane—where the cost of an equivalent house could be more than double.
2.33Like the FAAA, pilots were concerned about how the commuting rosters might work in practice and whether pilots may be out of pocket for accommodation after the $700 fortnightly allowance runs out.
2.34One pilot concluded that the benefits package offered by Qantas has:
… been designed to be able to say to the public that they have provided the ability for staff to stay in their desired location whilst in reality it is likely to be untenable for the employee to maintain a true work and family life balance without relocating.
2.35Pilots highlighted the fact that the base closure decision occurred at a time when morale was already low for many Qantas pilots, with some having been uprooted by previous base closures, and traumatised by the behaviour of the company during previous enterprise bargaining rounds.
2.36Regardless of how Qantas justifies the decision, the witnesses felt that it represents a 'kick in the teeth' to regional pilots, many of whom have given over 20 years of service to the company.
Qantas response
2.37Qantas responded to questions about the timing of this decision and the impact on pilots who had recently relocated. QantasLink Chief Operating Officer, Captain Nick Collie, acknowledged that certain pilots were offered the opportunity to 'move to a base of their choice' prior to the February review:
When we commenced the review in February 2025 and an accelerated 220 delivery profile, what that is showing us is where the bases are and where the flying comes out of. So we understand that, and we understand that people made those decisions, which is, again, why we are supporting our people and why we are doing things differently here—because we understand that some people simply cannot move.
2.38Qantas acknowledged that redundances are not being offered for pilots. The airline emphasised that no one is being made redundant, and it has 'jobs for everyone'. Following negotiations, Qantas offered a separation payment for cabin crew who choose not to transfer. However, according to the airline, the pilot group 'has not made such a request'.
2.39Asked if Qantas would support redundancies for pilots, CEO of QantasLink, Ms Rachel Yangoyan, confirmed the company 'would absolutely work with them on what that might look like'.
2.40In response to concerns about rostering, Qantas submitted:
A quarterly review committee will be established that will, in consultation with unions, monitor impacts including to rosters and time spent at home across the pilot bases.
Qantas will also provide roster support to reduce the number of commuting trips and maximise time at home including:
maximising multi-day trips;
pairing with single-day trips or single-day reserves;
prioritising allocations of duties off reserve 24 hours in advance where available; and
allocating paired [rostered days off] RDOs where possible.
2.41Qantas was asked how the $700 per fortnight commuting allowance was set, with senators echoing witness concerns that this rate would be insufficient. Captain Collie said the company will be working to 'minimise people's time out of base' and will also conduct a quarterly review to ensure the settings are right; he said, '[t]his is not something we're going to set and forget'.
2.42Qantas noted that the company intends to extend the commuting arrangements 'beyond two years' for some individuals in Hobart because of their specific circumstances.
2.43Asked if she would guarantee that Qantas will extend the two-year period for those who wish to continue commuting, Ms Yangoyan said: 'We've said to all our people we're going to work with them individually. That is our commitment to them, and we will make sure that happens'.
2.44Asked if Qantas would consider reversing the decision, Ms Yangoyan said:
I'm confident that this decision is setting us up for future growth … This decision is locked in. … This is an operational business-as-usual process that were going to go through because things do change in this industry. Demand changes and, where we fly the aircraft changes. Things in the future may change. But right now, I can tell you that on the network and the schedules that we're going to operate, we've made this decision. As difficult as it is for the 71 people that we're absolutely supporting, this is the right decision for regional Australia.
Impacts on affected communities
2.45Inquiry participants talked about the impact of this decision on their communities, including the loss, over the long term, of highly skilled, well-paid, secure jobs, and the impact on community confidence.
2.46As well as the loss of aviation jobs, pilots who gave evidence in camera talked about the loss of the skills and expertise their partners provide in their communities, some of whom are nurses or teachers, or run local businesses.
Canberra
2.47The ACT Chief Minister, Mr Andrew Barr MLA was disappointed by the decision, submitting that '[r]eliable and affordable air services are critical to the economic, social, and strategic interests of Canberra and its surrounding region'. The Chief Minister outlined the ACT Government's view that Qantas' decision to 'consolidate operations in major capital cities … further erodes regional engagement and undermines aviation's role in supporting regional communities'.
2.48The Chief Minister noted that the ACT community provides 'a diverse and high-value market', including 'government, business, education, diplomatic, and leisure travel', which 'delivers strong yields' for Qantas. Mr Barr said the decision to close the Canberra base 'diminishes Canberra's role as a strategic aviation hub' and a city which 'supports a diverse, highly skilled professional community'.
2.49ACT Senator, David Pocock, asked Ms Yangoyan if she considered it appropriate to maintain a Qantas base in Canberra because of the significant investment in flying with Qantas that is made by the Australian Public Service. MsYangoyan replied, 'I think what is most important as the national carrier is that we can continue to serve all of regional Australia viably into the future'.
Hobart
2.50Hobart Airport and Hobart City Council were both invited to make submissions and give evidence at the public hearing into this matter. Neither accepted the committee's invitation. However, Tasmanian Senators who attended the hearing voiced concerns around the impacts to that state of losing around 30well-paid, skilled aviation sector jobs.
2.51At the time the decision was announced, Qantas outlined its 'commitment to Tasmania':
… Qantas and Jetstar currently operate around 285 flights per week to and from Tasmania and we are growing our network with the relaunch of Qantas flights from Hobart to Perth. There will be no impact to flights to and from Hobart as a result of this decision.
Qantas is also deploying the A220 on four routes to and from Hobart and Launceston and will be opening a new Qantas Lounge at Hobart Airport.
Additionally, Qantas continues to employ more than 120 people at its Hobart Contact Centre and will shortly recruit an additional 13 people.
2.52Nevertheless, as noted in Chapter 1, Tasmanian Members of Parliament remained concerned about the long-term impacts on that state.
Mildura
2.53Mildura Rural City Council and Mildura Airport submitted that, despite reassurances that flight schedules 'will remain unchanged', the closure of the Mildura staff base 'weakens regional connections, reduces local economic activity and indicates a shift toward centralisation'. Further:
Uncertainty—whether from airline decisions, fare volatility or lack of government support, creates hesitation for businesses and residents, discouraging investment and increasing social isolation.
2.54The Council—which owns and runs the airport, at a loss—was keen to point out that aviation is 'essential infrastructure' for the community, which is six hours by road from Melbourne and four hours from Adelaide: 'Without reliable and affordable air services, Mildura faces significant barriers to economic growth and equitable access to essential resources'.
2.55CEO of Mildura Airport, Mr Andrew Elliott maintained there is a lot of concern in the local Mildura community about the impacts of this decision on those affected, their spouses, families and schools. Mr Elliott was also concerned about the signal sent by the decision:
It's lack of regional connections, reduced local economy activity, business investment—those sort of things—jobs and skills. An airport of Mildura's capacity in Mildura, it's a big business. It's a big deal in town. We're a big employer. Some of the career paths that are offered not only through the airport but through the airlines and through the ground handling companies are good career paths that can lead to people having successful careers.
2.56However, according to Mr Elliott, the decision does not change operations at Mildura airport. In fact, in his view, while Mildura airport still has an aircraft that 'stays overnight', that 'constitutes a base'. He did, however, acknowledge the significant impact on affected employees. Nevertheless, Mildura Rural City Council and Mildura Airport recommended government develops 'policy frameworks to protect regional aviation jobs, preventing further erosion of local capability'.
2.57In addition, Mr Elliott recommended 'state-level operational support for isolated airports in Victoria', including government funding to help out with 'compliance costs, security screening, Civil Aviation Safety Authority (CASA) obligations and major infrastructure renewal'. He also talked about the high cost of regional airfares and suggested fare subsidies, or 'minimum service guarantees to address affordability and equity for regional communities'.
2.58These issues will be discussed in more detail in the committee's final report.
Reliability of regional flights
2.59As outlined in Chapter 1, Qantas argued that its decision to close the bases is aimed at improving reliability and resilience for its regional services. However, unions, pilots, crew and others disputed this claim.
2.60Mr Lynch said that this decision will mean 'fewer crews based in regional cities, which will necessarily cause more cancellations and reduce resilience for people who are flying out'. Mr Lynch contended that closing these bases may provide Qantas with 'a marginal benefit in decreasing cancellations or delays for the major cities' but is likely to actually increase cancellations and delays on regional routes, and that those delays are likely to be more significant (hours, rather than minutes).
2.61Mr Lynch noted that data indicates QantasLink is already performing well, especially in regional areas, when it comes to on time-service, and that the union believes these changes will make it worse in regional areas.
2.62Ms O'Toole similarly disputed the airline's claim that closing these bases would make Qantas' regional services more resilient, saying:
It doesn't really make a lot of sense. If you have a base, you have what we call 'standby'. It means that, if you have 15 people in a base, you have people who aren't working on that particular day who may be available to the company to use. When you don't have a base, that's worse. For instance, let's say a flight left Brisbane to go to Hobart. On that flight, one of the crew gets sick or two crew get sick. When that flight lands in Hobart, how are you crewing it out of Hobart? I don't understand how no base helps with their problem of people being sick.
2.63Canberra Airport submitted that passengers from the ACT and southern NSW 'rely on consistent services' and need to 'have confidence that the progress achieved in improving reliability will not be undermined by the closure of the Canberra crew base'. According to the Airport, having experienced pilots and cabin crew in Canberra 'has long contributed to the stability and reliability of services to and from the region'. The Airport was concerned the departure of these personnel 'may impact the operational resilience of Qantas' services from Canberra Airport'.
2.64The Chief Minister also noted the importance of operational resilience in Canberra, 'particularly during parliamentary sitting period or adverse weather events', saying a decline in reliability 'could significantly impact economic activity'.
2.65The TWU submitted that base closures have the potential to cause more cancellations, particularly in Canberra. FAAA said that centralising crews 'to major hubs increases the risk of total network paralysis during hub-centric disruptions'.
2.66Mr Lynch noted Tasmania's 'heavy reliance' on the tourism industry—which is sensitive to any reduction in air services—and the need for healthcare workers to fly into Tasmania, saying, the decision 'could have much broader societal implications if we do see those run times and those cancellations increase for Tasmania'.
2.67However, when Mr Lynch was asked if the TWU had noticed differences in services to other regional communities where bases had closed, such as Cairns, he acknowledged the union has not looked into it—but probably should.
2.68The TWU confirmed suggestions that the Hobart base currently provides 'a resource that can be drawn upon' when there are staff shortages in other, smaller airports in Tasmania, like Launceston, Burnie and Devonport. Mr Lynch said:
You're taking that resource away and the implications are then going to be that it's not just Hobart, where if you have one overnighter who falls ill then that's it for the day really; you're going to have the same in all the other Tasmanian airports that [Qantas] fly into.
2.69Similarly, Canberra Airport said that it understands the current arrangements mean that illnesses and unexpected staff leave in Canberra can be covered by the Canberra-based crew, ensuring vacancies are 'filled in a timely and convenient manner, with limited disruption to the flight schedule'. Canberra Airport was concerned that closing the Canberra base increases the risk of 'unreasonable disruptions to services'.
2.70Pilots who gave evidence in camera agreed that the closure of regional staff bases would likely increase delays and cancellations on regional routes.
2.71Ms Yangoyan insisted that the closure of these three bases 'will not result in any reduction in flights or impact reliability to and from these cities'. Asked if she would be willing to stake her reputation on it, Ms Yangoyan replied, 'base changes are not going to impact cancellation or on-time performance'.
2.72Ms Yangoyan was asked to explain an existing issue with high cancellation rates on the Canberra to Sydney route. The CEO stated that the predominant reasons are 'weather, engineering and air congestion into Sydney'. She added that Qantas' 'engineering and fleet health' also needs to improve.
2.73Canberra Airport submitted that Qantas has worked constructively over recent months 'to address reliability issues, particularly on the Canberra-Sydney route'. The airport noted that cancellation rates 'have declined noticeably, reflecting a genuine commitment to better serve passengers'.
Consultation and decision-making process
2.74A significant issue for impacted employees and their representatives was the brief period of consultation, and a sense among staff and unions that the decision had already been made by the time the review was announced on 10September 2025.
2.75Inquiry participants also questioned Qantas' stated reasons for the decision, and the fact that the decision came shortly after a number of pilots relocated to these bases through a Qantas program.
Consultation period
2.76According to the FAAA, Qantas commenced discussions with the union on 10September 2025—the same day the review was publicly announced. The first meeting was held on 16 September, where Qantas representatives 'provided a presentation about the review'.
2.77Industrial Lawyer, Mr Andrew Boulton said when they first contacted the FAAA, the Qantas industrial relations team 'were adamant that no decision had yet been made'. However, asked if the union was informed that a decision would be made by the end of the month, Mr Boulton said 'no'—the announcement on 1 October came as a shock.
2.78Mr Elliott said that Mildura Airport was only informed about the review two weeks before the 1 October decision, by his commercial contractor at Qantas. Then one week later, Mr Elliott was told that 'Mildura would be closing'. MrElliott confirmed he was not invited to provide any information to the review.
2.79Following the announcement, Mr Elliott explained there was a lot of concern among councillors, the mayor, and local member, Dr Anne Webster MP. MrElliott communicated these concerns to Qantas, which provided responses that Mr Elliott relayed to these stakeholders.
2.80The TWU questioned Qantas' statement that it had 'undertaken extensive consultation', saying, 'with the significant political, workforce and public outcry over the closures, it is clear that the decision had already been made before consultation began'.
2.81Pilots who gave evidence in camera also believed the decision had already been made when the review was announced on 10 September, as Qantas would not choose to cause unnecessary distress by publicly announcing the review unless it intended to close the bases. They also believed the decision had been under consideration for much longer, referring to rumours about possible base closures from months earlier.
2.82One pilot suggested that the 3-week 'base review' was simply a publicity exercise, designed to limit the likelihood of litigation against the company, and reduce public backlash.
2.83Another submitted that Qantas management 'chose to overlook' genuine concerns of staff regarding 'inefficient rostering practices that were in place and how they could be rectified', and did not listen to concerns about 'the emotional toll [the closures] would have on staff and their families'.
2.84Ms Yangoyan was asked when she, as the CEO, became aware that the Hobart, Canberra, Mildura bases were going to close. She responded, '[i]n February the team started to do the work, and I became aware of it a few months after that'. She later responded to a suggestion from Senator Pocock that the decision had been made before consultation started on 10 September by saying:
No, Senator. We certainly had a hypothesis that it was going to provide resilience and ultimately better the network. But consultation was a very important part of this process because we learned a lot about the impact to our people, and that was really important to help design packages that were going to be reflective of their needs. So, no, the decision wasn't made. But did we have a hypothesis that we needed to do this for the strength and resilience of our network: yes.
2.85Ms Yangoyan was asked when Qantas developed the 'hypothesis' that the bases would need to close. Her response was unclear, again referring back to February 2025, when Qantas commenced the modelling that would lead to the decision. Captain Collie offered the following clarification:
We did work from a period of February 2025 up to 10 September, when we communicated we were doing a review. The hypothesis was generated close to 10 September, when we had done all that work in terms of our recruitment profile, our network and what that looks like over the period of time. That's when the consultation kicked off. The hypothesis was reached a few days or weeks just before that in terms of once we'd completed that work.
Avoiding redundancy payments
2.86The FAAA submitted that Qantas 'initially refused to pay redundancy, relying on "Alternative Employment" clauses', which state that redundancy does not have to be paid where 'acceptable employment' can be found for employees:
Qantas argued that a job in Sydney was 'acceptable alternative employment' for a Hobart resident. The FAAA argued that for a person with a mortgage and a partner with a local business in Hobart, a job in Sydney is not an acceptable alternative.
2.87While Qantas stated that pilots have not asked for redundancies, the TWU said it did make representations on behalf of pilots for redundancies to be an option, but Mr Lynch 'understand[s] that's been rejected by the company and that remains the position'.
Reasons for the decision
2.88Ms Yangoyan said the decision to close staff bases in Canberra, Hobart and Mildura 'will strengthen the resilience of the QantasLink network, improve reliability for customers and better position our airline to grow frequencies across regional Australia'.
2.89The decision is connected to Qantas' fleet renewal. Ms Yangoyan explained:
… we are undertaking a very significant fleet renewal program, in particular with our A220. We currently have nine of those aircraft, and we have another 20 to come over the next two years. As we look forward, we need to recruit almost another 150 or so pilots and close to 350 more cabin crew. We want to make sure that as we're recruiting, we're setting those bases up for success, for where our schedule and network will be based. What we do is we look forward at our network and our schedule and we build what's called pairings. Pairings are basically a string of routes that ultimately sit on a crew member's roster. When we do that, we've got a number of optimiser tools that take these schedules and networks and then they look at all of the things around the flight rules, limits, roster rules, fatigue rules for our cabin and tech crew, and they determine how to create these patterns. Eighty-five per cent to 90 per cent of those patterns will be based or originating out of those major cities of Brisbane, Sydney and Melbourne.
2.90During the hearing, Ms Yangoyan said the decision was based on information produced by optimisation software. When asked to quantify the benefit of relocating these 71 roles, including what proportion of flights would be saved (not cancelled), Ms Yangoyan said, 'close to 40 per cent', but was unable to further explain this data.
2.91On notice, Qantas provided broken-down data to explain Ms Yangoyan's statement. Figure 2.1, below, indicates that 13.3 per cent of total flight cancellations for the A220 aircraft type are due to crew-related factors (such as illness or unavailability). Of that, 21 per cent are due to crew in the three bases that are being closed. Qantas submitted that 38 per cent all crew-related cancellations (for the A220) could be avoided if crew were rostered reserve in major city bases (instead of in Canberra or Hobart):
Table 2.1Cancellation and delay rates for 12 months from 1 December 2024 to 30 November 2025 by fleet type
| | |
Cancellation rate | 5.7% | 4.2% |
Cancellation due to crew as a percentage of total cancellations1 | 13.3% | 14.5% |
Cancellation rate due to Canberra, Hobart and Mildura crew as percentage of crew cancellations2 | 21% | 0% |
Cancellations that could have been recovered if crew were rostered reserve in major bases | 38% | n/a |
Delay rate | 31.0% | 20.7% |
Delays due to crew as a percentage of total delays3 | 10.7% | 7.8% |
Source: Qantas, response to questions on notice, public hearing 28 November 2025 (received 5 December 2025), [p. 2].1. subset of overall cancellation rate. 2. subset of cancellations due to crew.3. subset of overall delay rate.
2.92Qantas also acknowledged that under-utilisation of crew was a factor in the decision to close these bases, saying:
Crew in smaller bases are often underutilised and do not necessarily provide coverage across the whole day for reserve duties.
With the rebasing of pilots and cabin crew to Sydney, Melbourne and Brisbane, crew can be more effectively deployed among larger crew pools to support more flying across the entire network.
For example, a crew member on reserve in Hobart will cover only one or two flights compared with a crew member in a major port who can cover three or four flights. Based on the past six months of operations, a Hobart-based reserve pilot is 47 per cent less likely to be used as a reserve compared to the network average.
2.93Figure 2.2, below, shows the utilisation of crew members who are on reserve (standby) in a number of Qantas staff bases over the last six months (to December 2025), noting Mildura does not have reserves:
Table 2.2Utilisation of reserve personnel at Qantas bases, compared to the network average
| |
Hobart | -47% |
Canberra | -16% |
Brisbane | 8% |
Melbourne | 3% |
Sydney | 41% |
Source: Qantas, response to questions on notice, public hearing 28 November 2025 (received 5 December 2025), [p. 3].
2.94Qantas submitted that the decision 'was driven by operational improvements across the network, not by cost savings'. Asked to quantify the cost savings anyway, Qantas explained there is 'an estimated saving of ~$3 million per annum steady state, however this is being reinvested in pilot and cabin crew support packages to either commute or relocate'.
2.95Airlines for Australia and New Zealand submitted that the Qantas Base Review and closure decisions align with global practice and consumer benefits:
Airlines worldwide routinely review the location of aircraft and crew bases. This is standard industry practice, adopted by major carriers globally to improve operational efficiency and customer service. The Australian Government similarly reviews the location of its personnel and assets, as seen in recent Defence relocations. Qantas' decision is therefore consistent with global trends and best practice.
2.96The FAAA disputed Qantas' stated reasoning for the decision, submitting that it obtained presentation documents which show that Qantas justified the closures based on 'operational "inefficiency"'. FAAA said these documents cite '"fixed costs of running the bases" as a primary driver' of the decision, 'rostering inefficiency', and 'lost productivity from paxing (being a passenger on an aircraft) crew to main bases for recurrency training'.
2.97The FAAA noted that the closures are not based on poor performance at these bases, with Qantas a saying all three bases 'have delivered excellent service'.
2.98Disputing Ms Yangoyan's claim that the decision was not about saving money, FAAA said:
The decision to close the Hobart, Canberra, and Mildura bases is a commercial decision by Qantas that carries a profound human cost. It treats loyal, long-serving regional staff as transferable assets, ignoring the complex web of family, economic, and social ties that bind them to their communities.
2.99Mr Elliott was asked to comment on the suggestion that closing these bases would improve reliability. He said, '[n]o, I wouldn't agree with that. … As I said, there was no change to the operation in Mildura at all, but potentially some reduction in costs'.
2.100The TWU was asked if it had been provided with any data or metrics from Qantas to justify the decision to close these bases. Mr Lynch replied:
The impression that we got was that the consultation was never genuine. We don't have any detailed explanation. They have given an explanation that they tried to summarise, but there was nothing more substantively detailed than that.
Views on Qantas' culture and approach
2.101The FAAA and TWU were highly critical of Qantas' treatment of employees over the last five years.
2.102Mr Lynch drew a connection between the decision on the bases, and Qantas' decision during the COVID-19 pandemic to 'illegally' outsource ground handling jobs.
2.103Qantas took a decision to restructure its business during the pandemic (when leisure flying ceased almost overnight) after estimating it would experience around '$20 billion in revenue losses' by Christmas 2021, and 'statutory losses across two financial years [of] over $5 billion'. Speaking to the Senate Select Committee on Job Security in October 2021, Qantas representatives said the company 'acted early to raise capital and restructure its business … to protect the national carrier from collapse and, in doing so, preserve as many jobs as possible'.
2.104As with the current base closure decision, Qantas claimed the decision to outsource ground handling was not about saving wages, but creating efficiencies, as specialised ground handling companies could to do the work faster and cheaper.
2.105The TWU took Qantas to court in 2020 and won the case. The Select Committee noted that Federal Court Justice, the Honourable Michael Lee agreed with the union's argument that Qantas had chosen to outsource its ground handling operations at that time 'to prevent employees engaging in protected industrial action and to circumvent enterprise bargaining'.
2.106Qantas was made to pay $120 million in compensation to affected workers and, in 2025, was ordered to pay a record fine of $90 million for breaching the Fair Work Act 2009 by unlawfully terminating these workers during the pandemic. Justice Lee ordered that $50 million of the fine should be paid to the union, 'partly to act as a deterrent that "should encourage others to pursue compliance with industrial relations laws"'.
2.107Referring to this case, Mr Lynch noted the court found that, 'although Qantas apologised, it might have been the wrong kind of apology—not a genuine apology but rather trying to say the right thing'. Closing these three bases simply confirms the 'judges' worst suspicions'.
2.108Mr Lynch suggested that the closure is particularly devastating for pilots who relocated in 2020 from Cairns to Hobart, when the Cairns base closed, 'under the premise that this base would remain open'. He said this action by Qantas indicates 'a broader pattern of behaviour ', specifically, 'consolidation across the east coast through the three major cities', at the expense of workers, passengers, and regional communities.
2.109Ms O'Toole noted that Ms Yangoyan has a history of taking action that disadvantaged employees:
Ms Yangoyan was the head of international cabin crew after COVID. Whilst everyone was on their knees and stood down, she made an application to terminate the enterprise agreement. That's Ms Yangoyan's history. Obviously, she was moved after COVID and everyone came back. We lost conditions that had been in place for more than 50 years. Part 1 of an [enterprise bargaining agreement] EBA was completely removed under her leadership.
…
For me personally having dealt with Ms Yangoyan, it was not a surprise to me that she took over QantasLink. I must admit it felt like she was being promoted by the business for how she had treated cabin crew.
2.110Mr Lynch said the base closure decision reflects 'the "old Qantas", the Joyce-era Qantas', and that the airline's treatment of workers over recent years has profoundly damaged the company:
The company that calls itself the 'spirit of Australia' is broken. When you speak to Qantas workers or former Qantas workers they tell you that a couple of decades ago this was a company that they were really proud to work for. I think when you talk to passengers they say the same thing; this is an airline that people wanted to fly. After years of, in our view, poor executive decision-making, that's unfortunately no longer the case. The Transport Workers' Union is not prepared to accept it. It can't be the case again. We want Qantas to do better.
2.111Ms Yangoyan acknowledged the impact of the decision on affected workers and argued the airline has 'done it differently' this time, listening to feedback and tailoring options to better support staff.
Concerns for regional aviation
2.112Inquiry participants believed Qantas' decision to close these bases is indicative of, or has broader implications for, Australia's regional aviation network. Witnesses outlined a number of concerns impacting regional aviation, including:
the effects of a lack of competition in Australia's aviation sector, including unaffordable regional airfares and inconsistent service; and
long-term sustainability of regional routes and regional airports.
Competition in Australian aviation
2.113A number of submitters highlighted the lack of competition in Australia's aviation sector, especially for regional communities. The ACT Chief Minister and the TWU both noted that Qantas' decision to close bases in Mildura, Canberra, and Hobart comes after the collapse of Bonza and the administration of Rex, which have reduced 'choice and affordability'.
2.114The TWU said Bonza had provided a 'much-needed boost' for isolated regional communities suffering from high airfares, and:
Rex's administration left a significant community of regional Australians stranded. With limited airline choices, passengers were left with no alternative but to pay excessively high fares, making air travel increasingly inaccessible and financially burdensome especially in cases of medical emergencies, with access to medical appointments when major cities are hours away unfeasible through other methods of transport. Regional communities will only be further disadvantaged by regional base closures which will lead to more cancellations, less resiliency for regional flights, and a drop in standards for passengers.
2.115The ACT Chief Minister echoed this view, saying the 'collapse' of regional carriers such as Rex and Bonza 'has reduced competition and connectivity for regional communities, including Canberra'.
2.116Qantas was asked if it determines regional ticket prices based on 'localised factors' of supply and demand or is there a cross-subsidisation from some of the more profitable routes. Ms Yangoyan replied that Qantas does 'not determine pricing cross-subsidised on other routes'—it uses 'fare ladders, which come back to supply and demand [on the specific route]'.
2.117Senators noted oversight work conducted by the Australian Competition and Consumer Commission (ACCC), which was directed by the Treasurer in 2023 to monitor domestic air passenger transport under subsection 95ZE(1) of the Competition and Consumer Act 2010 (cth), until at least 2026.
2.118The ACCC's December 2025 monitoring report highlighted the continuing lack of competition in Australia's aviation sector, saying:
Domestic aviation remains dominated by Qantas Group and Virgin Australia. … Combined, the Qantas Group [which includes Jetstar] serviced 64.8% of all passengers in October 2025. Adding in Virgin Australia, the proportion of passengers serviced by the 2 largest domestic airline groups was 98.4%. Rex carried 1.6% of passengers.
2.119The ACCC also noted that, while Qantas and Virgin Australia 'reported substantial earnings for the third year in a row' (Qantas—$1.5 billion for domestic operations, and $2.6 billion for all operations; and Virgin—$664 million for all operations), October's airfares were 'the highest of any month since December 2022'. The ACCC concluded that, among other factors, a 'lack of effective competition in the sector … means that there is less incentive for airlines to reduce ticket prices'.
Long-term sustainability of regional routes and airports
2.120Inquiry participants were concerned about the implications of the base closures on the long-term sustainability of regional routes and airports.
2.121The ACT Government encouraged Qantas to 'explore opportunities to expand its presence in Canberra and to partner with the ACT Government and Canberra Airport to strengthen regional connectivity and support the aviation sector's long-term sustainability'.
2.122Despite Canberra Airport's disappointment about the crew base decision, it welcomed Qantas' commitment to expand A220 operations and maintain a maintenance base at the airport, saying this demonstrates that 'Qantas continues to see long-term value in maintaining a presence in the national capital'.
2.123Mildura Rural City Council and Mildura Airport noted that regional fares are, on average, 52 per cent higher per kilometre than metropolitan routes. This impacts 'access for health appointments, education and business travel', erodes community confidence, and 'discourage[s] tourism and investment'. To address these issues, the Council recommended this inquiry specifically recognises 'challenges faced by council-owned airports', and advocates for 'a fairer, more resilient framework for regional aviation'.
2.124The TWU suggested a number of regulatory interventions are needed to ensure that regional communities 'are not an afterthought for these aviation companies'. As such, the TWU recommended the Commonwealth set up a 'Safe and Secure Skies Commission'—an independent body which would 'bring workers, passengers and regional communities together to set minimum standards' and could 'be genuinely consulted with to make these decisions'.
2.125Mr Lynch noted that billions of dollars of taxpayers' money was provided to Qantas to keep the company afloat during the COVID-19 pandemic, and that:
… the community expects … when these significant decisions are made that they are not made solely in the interests of pursuing increased profits, but [airlines] are also forced to consider what the impact on workers and what the impact on regional communities in particular is going to be.
2.126Asked how a Safe and Secure Skies Commission would work in practice, MrLynch said it could be set up 'similar to the road transport committee that currently already operates as a subcommittee of the Fair Work Commission'. The cost would be minimal, as unions and stakeholder groups would participate on a voluntary basis.
2.127Ms O'Toole shared her personal view—as someone who's been in aviation for 40 years—that carriers with a high market share 'should be made … to fly out of these regional ports'. She believed that companies who want to run a domestic airline in Australia should be required by government to cover regional bases.
2.128Qantas contended that regional carriers around the world face significant challenges, as they have to 'spread high route costs' across a small number of passengers:
This is not unique to Australia. In the past month, Air New Zealand has flagged significant challenges in their regional business, citing many of their regional routes as sub-economic. Two regional airlines in the United Kingdom have ceased operations in the last couple of months. These contemporary examples, together with those here in Australia, highlight the importance of constantly reviewing our business to ensure it's set up for success to serve regional Australia. This includes the recent base changes.
2.129Issues raised in this last section of the report will be further considered throughout the inquiry.