Jetstar pullout could axe 300 Avalon jobs

By Zoe Samios

Up to 300 Victorian jobs could go if Jetstar can’t make its Avalon airport routes profitable.

Jetstar is the only passenger carrier at Victoria’s second airport, near Geelong, and its lease expires on April 30.

Avalon Airport chief executive Justin Giddings says the airport has one month to convince Jetstar to stay.

“It’s hard to know, but I’d say 200-300 jobs could be affected directly,” he told AAP.

“But, indirectly, it could be pretty damaging for Geelong.”

The viability of the airport itself would be not be affected, even if Jetstar were to pull out, Mr Giddings said.

“We’re right in the middle of Melbourne and Geelong, a growth corridor.”

He says if Jetstar does call it quits at Avalon, the airport will look at enticing another carrier to move in.

Victorian Premier Daniel Andrews says any potential bailout of Jetstar’s Avalon operation would come with strings attached.

“There would be a whole range of conditions, we’d want to see services grow, we’d want to see more flights in and out of Avalon,” Mr Andrews told reporters on Wednesday.

A Jetstar spokesman said a decision on the airline’s future at Avalon would be made before the funding agreement between the Victorian government, Linfox and Jetstar expires.

Jetstar contributed $2.75 million to the 18-month, $11 million funding package.

But Jetstar says even with the assistance package, the route had been running at a loss for the past five years.

Opposition Leader Matthew Guy asked the government how serious it was about Avalon, given its recently-released aviation strategy made no mention of the airport.

Mr Andrews said the current situation had come about because the previous coalition government had used a short-term lease for the airport.

“We’re going to fight for jobs, and we make no apology for that,” Mr Andrews said.

Jetstar has operated out of Avalon for 11 years but flights have been reduced to one Sydney route leaving five times a day.

Mr Giddings said more flights and destinations were needed to maintain competitiveness.

But Jetstar said it operated 14 flights a day to various destinations six years ago, but it had to stop because of low passenger numbers.

Geelong workers have had a tough few years, with job losses following factory closures at Ford, Qantas, Alcoa and, if the refinery can’t be sold, Shell.

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