Qantas boss Alan Joyce says the airline faces ruin unless it creates ventures overseas, while Australian unions have stepped up calls for the government to stop Qantas jobs going offshore.
Union leaders descended on Canberra on Wednesday demanding action to stem job losses from a five-year Qantas plan to create a premium service in Asia and other restructuring announced on Tuesday.
Qantas said the plan would affect 1000 jobs, but unions say it could lead to thousands of local jobs being axed as the airline phases out older planes and focuses on growth overseas.
Transport Workers Union national secretary Tony Sheldon said for every job in the aviation industry another 6.5 jobs were attached.
The union leader called on the government to honour the intent of the Qantas Sale Act, which allowed the airline to be privatised in 1992 under certain conditions to keep it as an Australian operation.
"And if the intent isn't strong enough it should be looking at legislative moves to protect what is not only an economically vital industry but a vital form of national defence, national training and national skills," he said.
Mr Joyce said it was ridiculous federal politicians were saying they would use the Qantas Sale Act against the carrier.
"The act was never designed, and it doesn't have any clauses, to stop an airline like Qantas using its expertise to create ventures in other countries where they can make money and bring that money back to Australia," Mr Joyce told reporters in Canberra.
"That's like ... giving BHP restrictions, they can't own any mines outside Australia, or ANZ, they can't set up any banks outside Australia."
Independent Senator Nick Xenophon will push for a parliamentary inquiry into whether Qantas has breached the act and is set to introduce a bill in the Senate to ensure the airline cannot employ foreign crew at rates less than Australian crew flying in and out of the country.
"There's a real concern that Jetstar has been getting away with practices that are just unconscionable," Senator Xenophon said.
"Qantas can no longer call Australia home, it's more of a layover for Qantas."
Mr Joyce said he felt the public's sense of ownership of the brand but the unions didn't want the company to change and grow.
"The unions are all about the negativity of tearing down the brand. They're all about us not making any change," he said.
"That is something the public never want to see - that's Qantas going in the way of (defunct airlines) Ansett, TWA and Pan Am."
Labor frontbencher Greg Combet said Qantas had to make decisions to ensure shareholders' interests were met and he hoped redundancies would be voluntary.
Greens MP Adam Bandt, who met with Mr Joyce on Wednesday, said he was unconvinced the airline would suffer seriously without using cheap labour overseas.
"While Qantas continues to claim its shift to Asia is about expansion and not about offshoring jobs, it is clear that competitive pressures will affect wages and conditions in Australia," Mr Bandt said.
"Qantas' new Asia airline will pay lower wages and will fly into and out of Australia.
"Once it is established, I can see nothing to stop Qantas' new Asia airline from replacing and displacing current Qantas operations over time."
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