QANTAS, its New Zealand operations and its Jetconnect subsidiary

2001 was a messy year for domestic operations on both sides of the Tasman. On the 20th of April 2001 Tasman Pacific Airlines and its Qantas New Zealand operation collapsed. Later in 2001 Ansett Australia collapsed and subsequently went into liquidation in 2002.

Meanwhile, on the 23rd of April 2001 the New Zealand Herald reported, Having allowed its New Zealand franchisee to collapse, Qantas Airways is considering entering the domestic market in its own right, and at a bargain basement cost. Tasman Pacific, the company that had been flying as Qantas NZ for less than a year, went into receivership on Saturday morning at the prompting of its major debenture holder, the Bank of New Zealand. Transport Minister Mark Gosche said yesterday that approval for Qantas to fly domestically had been granted last week as part of what he understood was a contingency plan by the Australian airline to ensure continuity of service.

"At the end of the day, the (Tasman Pacific/Qantas New Zealand) numbers didn't stack up," said Qantas spokesman Michael Sharp. Mr Sharp said Qantas had several options for its involvement in the New Zealand market, but it was too early to be more specific. One of those options would appear to be buying at bargain basement prices the pieces of the Qantas NZ operation that it needs to connect with its trans-Tasman flights. Peter Harbison, director of the Centre for Asia-Pacific Aviation in Sydney, said a "selective re-entry" by Qantas into the New Zealand market is a strong possibility. "Qantas had the opportunity before to invest in it, and made it clear it didn't want to. "But it does want to be in the market. It's, important, albeit not essential, to compete with Air NZ, at least in the connecting market if not the domestic market. "If it was going to make any sort of investment, it would sit back and wait, and perhaps pick up certain pieces in what is definitely a buyer's market. Certainly it would like the market share."

With these thoughts brewing it was quite to politic for Australia’s Qantas Airways to offer domestic services with a Boeing 767 and Boeing 737s to help move stranded passengers on the main trunk Auckland-Wellington-Christchurch triangle. Interim flights between Auckland and Wellington and between Auckland and Christchurch began on the 24th of April. A number of Qantas aircraft were used including Boeing 767-300 VH-OGP from the 24th of April, Boeing 737-300s VH-TAY from the 25th, VH-TAU from the 30th of April and Boeing 737-300s VH-TAF, VH-TAK, VH-TJA were used from May 2001. Passengers for these domestic flights were checked in at Qantas’ international counters. After the initial flights a routine was established where one Boeing 737 operated twice a day on the Auckland-Wellington and Auckland-Christchurch routes.

Meanwhile, on the 1st of May 2001 Qantas announced it would launch a domestic service in New Zealand starting on June 1. Qantas chief executive Geoff Dixon said the Boeing 737 service would operate 10 round trips each day between Auckland and Wellington and eight between Auckland and Christchurch. It will offer business class and economy class. Qantas said it will run and manage the New Zealand operation.

In addition to this unconfirmed sources were reported in NZ Herald on the 12th of May that an arrangement had been reached with Origin Pacific to fly key tourist routes using planes formerly leased to Qantas NZ. Industry sources say Origin has secured leases on the five Dash-8 turboprop aircraft to service Queenstown and Rotorua, as well as the Wellington-Christchurch route. Two of the aircraft are 50-seaters and three are 38-seaters. planes. Qantas also plans to fly Boeing 737s, carrying 116 passengers, into Queenstown on weekends, starting next month in time for the ski season. The Dash-8s will make eight return trips a day on the Wellington-Christchurch route. Qantas was also in talks with Nelson-based Origin Pacific to service other routes and destinations.

Qantas formally began its New Zealand services on the 1st of June 2001 using four Boeing 737s to operate 10 return flights a day between Auckland and Wellington, and eight between Auckland and Christchurch. On the 12th of May 2001 it had been announced that Origin Pacific would enter a codeshare arrangement with Qantas Airways. Origin began flying the Rotorua-Christchurch and Christchurch-Wellington services on the 23rd of July 2001 using two leased 50-seat Bombardier DHC-8-311 turboprop aircraft, ZK-NEQ and NER. Origin’s services had a Qantas flight number and flight code. Later, in October 2001, Origin Pacific expanded their contract arrangement with Qantas and began operating twice daily return services between Christchurch and Queenstown.

Qantas Boeing 737-300 VH-TAF landing at Wellington on 4 June 2001 a few days after formally starting domestic flights in New Zealand

Qantas Boeing 737-300 VH-TJC arrives into Christchurch on 2 July 2001

On the 14th of September 2001, Ansett Australia collapsed and Qantas needed additional capacity back in Australia. Some New Zealand-based 737s were sent back to Australia to deal with the aftermath of stranded Ansett passengers. Meanwhile, to cover the need for capacity in New Zealand, Qantas leased 737s from Air Pacific and Polynesian Airlines. Air Pacific’s Boeing 737-7X2 DQ-FJF was used from the 7th of October 2001. Both Polynesian Airlines’ Boeing 737-8Q8s were used at different times, 5W-SAM from the 28th of October 2001 and 5W-SAO from the 29th of October 2001.

Ansett Australia’s collapse allowed Qantas to set about securing the lease of three ex-Ansett Australia Boeing 737-33As for their New Zealand services. These aircraft, in the VH-CZR, VH-CZS and VH-CZU, entered service in November and December 2001. In January 2002 they were joined by a fourth Boeing 737-33A from the Ansett Worldwide Aviation Services’ stable. This aircraft, which was registered VH-JNE, had never seen service in Australia and had spent its whole life leased to Brazilian airlines. The arrival of these aircraft saw Qantas’ own 737s return to Australia and they departed New Zealand in November and December 2001. Air Pacific’s Boeing 737 also finished in December 2001 and the lease of Polynesian Airlines’ Boeing 737 ended in January 2002.

One of the Ex-Ansett Australia Boeing 737-300s, ZK-CZR, on the taxi to the terminal at Christchurch on 16 September 2001

Mike Condon and Brian Lockstone recorded in the AHSNZ publication Aerolog that, during April 2002, Qantas Airways purchased part of Ansett Worldwide Aviation Services' leasing portfolio from owner Morgan Stanley Dean Witter & Co. Control of aircraft under existing wet-lease agreements between AWAS and Qantas Airways was transferred to Australian Wetleasing Operations P/L, the new aircraft leasing arm of Qantas Airways. Ownership of the aircraft was retained by AWAS. The aircraft involved are the four Boeing 737-33A aircraft utilised by Qantas Airways on domestic passenger services within New Zealand These aircraft were registered to Australian Wetleasing Operations P/L on 24 April 2002.

 

Earlier, on the 11th of June 2001, Qantas Airways had established a New Zealand company, Jetconnect Limited, as a wholly-owned Qantas subsidiary with the intention of obtaining a New Zealand Air Operator Certificate and placing the aircraft on the New Zealand civil aircraft register. It was over a year later that Jetconnect Ltd took to the air in its own right. Jetconnect took over the AOC from Australian Wetleasing Operations (AWOPS) and began operating Qantas flights. The final flights in Australian registration were operated on the 15th of October 2002. On the 16th of October 2002 the four Boeing 737s were transferred to the New Zealand civil aircraft register with the Australian VH- prefix changing to the New Zealand ZK- prefix.

The same aircraft in two registers... Qantas Boeing 737-300 on the Australian register as VH-CZS at Wellington on 24 April 2002...

...and on the New Zealand register as ZK-CZS at Christchurch on 14 April 2003

Again Mike Condon and Brian Lockstone recorded in the AHSNZ publication Aerolog that Jetconnect Ltd added a fifth aircraft to their New Zealand operation with Qantas Airways' Boeing 737-376 VH-TAU arriving in Christchurch from Melbourne (QF6017) on 25 October, having completed its final service earlier that day from Coolangatta (QF799). It then became ZK-JNF (without name) before entering service on the 29th when it flew from Christchurch to Auckland (QF4124). The additional aircraft saw services between Auckland and Wellington increase to 12 return flights each weekday while the Auckland-Christchurch sector is now supporting 11 return services each weekday. Weekends see a slight reduction on weekday frequency over both of these routes. This network will now consolidate and remain a five aircraft operation in the foreseeable future.

Australian-registered Boeing 737-376 VH-TAV was used briefly over the Christmas holidays of 2002/3 enabling fleet maintenance. On the 4th of May 2003 Boeing 737-376 ZK-JNG entered service enabling further frequency increases. On the 6th of July 2003 Qantas began weekend flights between Auckland and Queenstown. These were extended to daily flights from the 22nd of September 2003 and twice daily from the 26th of October 2003.

Qantas' New Zealand timetable effective November 2003. Note the inclusion of Origin Pacific operated flights

Another 737 followed 4 months later with Boeing 737-376 ZK-JNH entering domestic service on the 3rd of September 2003. The arrival of ZK-JNH enabled Jetconnect to begin operating international services for Qantas with New Zealand based crew and aircraft. These commenced on the 1st of September 2003. From that day return flights were operated from Wellington to Brisbane, Sydney and Melbourne. Jetconnect also introduced trans-Tasman Qantas flights between Christchurch and Brisbane. Mike Condon recorded the start of the Jetconnect operated Qantas flights in Aerolog… Early on 1 September ZK-JNF departed for Sydney (QF118) before returning to Wellington (QF47), followed by a further return service to Sydney (QF48/117). Meanwhile, ZK-JNG left for Brisbane (QF158) prior to heading back to Wellington (QF57), followed by a return service to Melbourne (QF38/137). On 2 September, ZK-JNF operated return flights to Brisbane (QF158/57) and Melbourne (QF38/137) while it was the turn of ZK-JNG to fly two return services to Sydney (QF118/47/48/117) that day. ZK-JNH was first used on trans-Tasman services on 4 September when it departed Wellington for Brisbane (QF158), then it flew to Christchurch (QF55) and back to Brisbane (QF56) before heading for Wellington (QF157).

2004 saw further routes expansion. This was offset by Qantas announcing its intention to end its code-share arrangement with Origin Pacific from the 31st of March 2004. Origin’s sales and marketing general manager Ewan Wilson was reported as saying, "Origin Pacific Airways entered into a relationship with Qantas under a long-term relationship basis. After a few months, unfortunately, Qantas fell in lust with the girl next door in the form of Air New Zealand, and that has made things a little bit difficult. Air New Zealand and Qantas were now 'determined to get together', which Origin found disappointing.” 

With the end of the Origin Pacific alliance Qantas began direct flights between Christchurch and Wellington and between Christchurch and Rotorua on the 1st of April 2004. The frequency of the Auckland to Queenstown flights was further expanded. ZK-CZS flew the first scheduled service from Christchurch to Wellington (QF4012), ZK-JNF from Wellington to Christchurch (QF4171) and ZK-JNE from Christchurch to Rotorua (QF4180) and back (QF4183) that day.

Qantas' New Zealand timetable effective 1 April 2004. The Origin Pacific operated flights have gone.

2004 and into 2005 also saw the replacement of the leased ex-Ansett Boeing 737-300s with Boeing 737-376s from Qantas in Australia. The “new” aircraft with their previous Australian registration included were, VH-TAY which entered service in January 2004 as ZK-JNA, VH-TAZ as ZK-JNB in May 2004, VH-TJB as ZK-JNC in July 2004, VH-TJA as ZK-JNN in October 2004, VH-TJC as ZK-JND in January 2005 and VH-TJD as ZK-JNO in March 2005. 

The ex-Ansett Australia 737s departed the fleet from July 2004 with ZK-CZR finishing that month, ZK-CZS in August, ZK-CZU in October and ZK-JNE, the last ex Ansett 737 flying its last flight from Auckland to Christchurch (QF4161) on the 10th of January 2005.

One of the "new" Jetconnect Boeing 737-300s, ZK-JND, departing Christchurch on 27 February 2005

From the 25th of March 2006 Jetconnect began operating thrice weekly Qantas flights between Auckland and Brisbane supplementing the daily Boeing 767-300 flights operated by parent company Qantas itself. A couple of days later, on the 27th  of March, Jetconnect took over the operation of Qantas’ thrice weekly service between Auckland and Adelaide.

From late-2005 Jetconnect started introduce slightly larger 400 series Boeing 737s to its fleet. The 400 series Boeings were configured with 16 business and 126 economy class passenger seats. Four 400 series 737s were used by Jetconnect. The first, ZK-JTP was placed in service on the 5th of June 2006 flying from Christchurch to Auckland (QF4104). It was followed by ZK-JTQ in June 2006, ZK-JTR in June 2007 and ZK-JTS in March 2009.

About to depart Wellington on 13 September 2006, Jetconnect's Boeing 737-400 ZK-JTP

This led to the start of the phasing out of the 300 series Boeing 737s. ZK-JNH departed the fleet in October 2005, ZK-JNA in June 2006, ZK-JNF in August 2006 and ZK-JNG in December 2006.

Jetconnect operated Qantas flights between Wellington and Christchurch were withdrawn from the 11th of March 2007. Previously two Boeing 737 flights a day were flown on the short 45 minute sector and this was deemed uneconomic.  

On the 21st of July 2007 the thrice-weekly Jetconnect operated Qantas flights between Auckland and Adelaide were withdrawn due to a lack of demand. The final services were operated by Boeing 737-476 ZK-JTQ as QF54/53.

A comparison of the difference between the Jetconnect's 300 and 400 series Boeing 737s... Above, Boeing 737-300 ZK-JNO and below the longer Boeing 737-400 ZK-JTP both taken on approach to Christchurch on 12 September 2007

On the 23rd of August 2007 Pacific Blue announced plans for its own domestic services commencing on the 15th of November. In response Qantas announced resurrected services between Wellington and Christchurch and a $13 million upgrade of its New Zealand operations including adding another aircraft to its New Zealand domestic fleet of four Boeing 737s in early 2008. The Qantas plan included a $3 million upgrade of domestic club lounges in Auckland, Wellington and Christchurch, refurbishing aircraft cabins, self-serve check-in kiosks at airports, an enhanced free food service and morning newspapers, and a free bar service from 4pm on weekdays. Another $3 million was  to be spent on installing satellite navigation capabilities on several of its jets to improve access to the lucrative Queenstown destination in conditions of reduced visibility. Qantas regional manager Grant Lilly said that the extra Boeing 737-400 aircraft would also help it to improve its on-time performance and offer a better "disruption recovery capability". That is an area where Qantas has come under increasing criticism from passengers. Despite scepticism among industry commentators about the New Zealand market's ability to support three domestic air operators, Mr Lilly said: "We are here to stay and to do the job as well as we can. History has shown there isn't room for two full network carriers [but] we are not trying to be an all-points carrier, and Qantas is part of a global network."

In February 2009 changes were announced for Qantas’ domestic and trans-Tasman operations. Domestically Jetstar was to replace the Jetconnect Boeing 737 operation with Airbus 320s with flights between Auckland and Christchurch, Wellington and Queenstown. Aligned with this announcement was the news that Jetconnect would be allocated eight new Boeing 737-800 aircraft for use on trans-Tasman operations.

The final Jetconnect Qantas domestic services were operated on the 9th of June 2009. This was an especially poignant day for Rotorua which was the only centre Qantas destination that was not to be served by Jetstar. The final Qantas services to Rotorua were operated by Boeing 737-476 ZK-JTQ which flew the final service from Christchurch, QF2785, and the return sector, QF2784. Later in the day Jetconnect’s final domestic service was from Wellington to Auckland as QF2728 which was operated by Boeing 737-376 ZK-JNC.

Jetconnect's Boeing 737-300 ZK-JNO at Rotorua. Photo : F Weir

 

With the domestic service closed Jetconnect’s international services were expanded. Because of the time difference the New Zealand based Jetconnect was able to operate two return Qantas flights a day. 

However, the Jetconnect operation was frowned upon by the Australian and International Pilots Association which held that Jetconnect was a ''sham company'' set up by Qantas for the sole purpose of avoiding its obligations under the award, and the employment agreement it has with Qantas pilots. The pilots say Jetconnect is effectively an operating division of Qantas - the New Zealander pilots wear Qantas uniforms, have Qantas staff numbers, and fly Qantas aircraft which travel routes determined by Qantas. But the conditions of employment at Jetconnect are significantly inferior to those at Qantas. Pilots are paid up to 33 per cent less and do not receive the same superannuation entitlements. Qantas makes a double saving by using Jetconnect: paying less in pilots' wages and reducing the hours it has to give to pilots under the Qantas agreement. ''Our problem is that Jetconnect is for all intents and purposes part of an Australian company, but Qantas is bypassing the minimum Australian pilot's salary,'' the association president, Barry Jackson, said.

In September 2009 Jetconnect started introducing Boeing 737-800s to its fleet. The first, ZK-ZQA, Jean Batten, was placed into service on the 17th flying to Brisbane and return as QF116/QF115. ZK-ZQB, Sir William Hudson, entered service later that month and ZK-ZQC, Katherine Mansfield, entered service in October 2009.

As the Boeing 737-800s arrived more Boeing 737-300s left the fleet; ZK-JNO in December, 2008, ZK-JNB in June 2009, ZK-JNN and ZK-JND in September 2009 On the 9th of November 2009 the last Boeing 737-300 flights were operated and the variant retired from the Jetconnect fleet. The last flights were flown by ZK-JNC between Auckland and Brisbane as QF126/QF125.

Jetconnect's last Boeing 737-300, ZK-JNC, landing at Christchurch on 25 June 2008

The next Boeing 737-838s, ZK-ZQD, Sir Edmund Hillary, ZK-ZQE, William Pickering, and ZK-ZQF, Abel Tasman, all entered service in February 2011. The last two, ZK-ZQG, Ernest Rutherford, and ZK-ZQH, Charles Upham, entered service in June and August 2011 respectively.

 

Jetconnect's first Boeing 737-800, ZK-JQA, on the taxi to depart Auckland on 27 July 2010

The arrival of the 800 series 737s led to Jetconnect’s Boeing 737-400s departing the fleet in 2011. ZK-JTS was retired in January, ZK-JTR in March, and ZK-JTP in October. Boeing 737-476 ZK-JTQ flew the final 400 series Boeing 737 flights on the on the 15th of November 2011 when it operated from Auckland to Brisbane and return as QF 126/QF125 leaving Jetconnect with a fleet of the 8 Boeing 737-800s.

Jetconnect's Boeing 737-400 ZK-JTQ, which flew the 400 series final flights, models the revised Qantas logo and typeface at Auckland on 21 June 2009

An interesting piece in the Syndey Morning Herald of the 19th of August 2012 gives an insight into the Jetconnect operation. QANTAS' trans-Tasman flying business Jetconnect is losing money - even though it has a similar cost-base to major rival Air New Zealand - because of tough competition on the short-haul route between Australia and New Zealand. Qantas does not disclose the performance of Jetconnect in its accounts. But during a recent hearing before the industrial umpire, Qantas' then head of commercial operations, Rob Gurney, revealed the Qantas subsidiary was ''incurring losses because of the fundamental dynamics of the market, and even though it has a cost structure comparable with Air New Zealand … it is losing money''. The subsidiary pays its pilots and cabin crew ''New Zealand rates of pay'', which are substantially lower than those for their Australian-based counterparts. ''The commercial dynamics of these markets are such that these are loss-making enterprises, even given the cost structures that are in place today,'' Mr Gurney told Fair Work commissioners in June. Qantas executives and pilot union leaders have been appearing before the workplace umpire at various stages over the past three months. It is the final of three industrial disputes, which culminated in the dramatic grounding of Qantas' entire fleet last October, to be settled. Qantas has argued that its higher labour costs put it at a big disadvantage to other airlines. But lawyers for the pilots' union told Fair Work it was a ''long bow'' to blame pilot salaries for Jetconnect's performance when they were less than their counterparts at Air New Zealand. Air New Zealand's highest-paid captains receive about $200,000, while a Jetconnect captain is on almost $140,000 a year. Jetconnect operates 90 per cent of Qantas flights between Australia and New Zealand, employing about 600 staff, mostly cabin crew and pilots.

On the 7th of December the Sydney Morning Herald reported that Jetconnect’s New Zealand-registered Boeing 737-800s would be transferred to Qantas’s air operator’s certificate and placed on the Australian register. The aircraft would continue to be flown by the lower paid New Zealand Jetconnect pilots and cabin crew. Pilots employed in New Zealand by Jetconnect will continue to fly those Australian registered planes - the first time Qantas' has regularly used foreign employed pilots on local aircraft. While Qantas says Jetconnect pilots will only fly the same trans-Tasman routes they do today, the move has riled the airline's pilots union, which says Qantas is shifting to a model of using overseas crews working on lower pay and worse conditions than their Australian counterparts. Qantas spokesman Andrew McGinnes said Jetconnect pilots would only fly the same routes they do today, and would not fly domestically in Australia or on international routes other than across the Tasman. Changing the registration of its 737 to Qantas' Australian Air Operators Certificate would mean Qantas could run a more efficient schedule. "By registering these aircraft in Australia instead, we could make much better use of this down time by flying domestic sectors in between flying to New Zealand," Mr McGinnes said. "Ultimately, these changes increase the amount of flying Australian pilots can do because we have more Australian-registered aircraft."

By this time ZK-ZQA had already been placed on the Australian register, its New Zealand registration being cancelled and becoming VH-VZF on the 25th of October 2017. The rest of fleet followed suit in 2018, ZK-ZQB migrating to Australian registration in February, ZK-ZQC in March, ZK-ZQE in May 2018, ZK-ZQD in August 2018, ZK-ZQF and ZK-ZQG on October and ZK-ZQH being the last to be cancelled from the New Zealand register on the 9th of November 2018.

Jetconnect Boeing 737-800 ZK-ZQC at Auckland on 10 August 2015

The 9th of November 2018 marks the end of Jetconnect’s airline operations in its own right. Jetconnect continues to employ pilots, cabin crew and support staff for the Qantas operation.

 

Qantas aircraft operated on New Zealand domestic services from 1 June 2001

VH-TAF (c/n 23477)
VH-TAH (c/n 23479)                                                   
VH-TAU (c/n 23486) - Later became ZK-JNF with Jetconnect
VH-TJC (c/n 24297) - Later ZK-JND with Jetconnect                                    

Jetconnect aircraft

Boeing 737-33A - ex Ansett-Australia

VH-CZR (c/n 24460) - Later ZK-CZR
VH-CZS (c/n 24030) - Later ZK-CZS  
VH-CZU (c/n 27267) - Later ZK-CZU 
VH-JNE (c/n 25119) - Later ZK-JNE   

Boeing 737-376 - ex Qantas

ZK-JNA (c/n 23490)    
ZK-JNB (c/n 23491)    
ZK-JNC (c/n 24296)    
ZK-JND (c/n 24297)    
ZK-JNF (c/n 23486)    
ZK-JNG (c/n 23478)    
ZK-JNH (c/n 23488)
ZK-JNN (c/n 24295)    
ZK-JNO (c/n 24298)    

Boeing 737-476 - ex Qantas

ZK-JTP (c/n 24441)    
ZK-JTQ (c/n 24442)    
ZK-JTR (c/n 24439)    
ZK-JTS (c/n 28152)    

Boeing 737-838

ZK-ZQA (c/n 34200) Jean Batten
ZK-ZQB (c/n 34201) Sir William Hudson
ZK-ZQC (c/n 34202) Katherine Mansfield
ZK-ZQD (c/n 34203) Sir Edmund Hillary
ZK-ZQE (c/n 34185) William Pickering
ZK-ZQF (c/n 34204) Abel Tasman
ZK-ZQG (c/n 34190) Ernest Rutherford
ZK-ZQH (c/n 39357) Charles Upham