Virgin Australia’s US agreement delayed as Qantas warns on future: Midday Roundup

Airlines are in the spotlight today, with Virgin Australia announcing a delay on its tie-up with Delta Airlines on trans-Pacific routes and investors digesting comments from Qantas chief Alan Joyce that he cannot concede to certain work demands because it would endanger the survival of the company in the long run.

Virgin said this morning that the US Department of Transportation has pushed back the comment period on the Delta alliance until June 2.

And last night, Joyce said the future of its loss-making Qantas International was a risk. “Our international business, if the demands are met, will go backwards even further,” he told ABC Television’s 7.30.

Patrick dispute still underway

Port operator Patrick is still in the middle of a dispute with the Maritime Union over workers’ pay, although employees have decided to call off industrial action.

Patrick responded to calls for industrial action by halting access to workplace areas and by denying pay.

“We are pleased that the union has recognised what they were doing to the importers and exporters of Australia,” Patrick director Paul Garaty said in a statement, according to AAP.

“These people have suffered enough at the hands of natural disasters without now having to suffer at the hands of the MUA.”

But Garaty also said that “unless the MUA removes the threat of further industrial action”, further strikes will be called.

He argues this hurts the business, along with “hundreds of small businesses, farmers, truckers and retailers who are already voicing their concerns.”

MUA national secretary Paddy Crumlin told ABC Radio this morning that “we’ve been there for nine months since the expiry of our last agreement and we are determined to get an outcome”.

“We just hope now [Patrick] will climb down from their rhetoric and posturing and sit down at the table and act in the best interests of their own company and in the national interest.”

International Monetary Fund could hold off on aid

The International Monetary Fund could withhold aid from Greece, with Eurogroup president Jean-Claude Juncker telling reporters that payments will not come if the country cannot guarantee its finances for the next year.

“If the Europeans have to acknowledge that the disbursement from the IMF on June 29 cannot be operationally implemented, then the expectation of the IMF is that the Europeans would step in for the IMF and take upon themselves the IMF’s portion of the financing.”

“That won’t work because in certain Parliaments – Germany, Finland and the Netherlands and others, too – there is no preparedness to do so,” he told a conference.

However, some analysts say the comments are meant to prod the Greek Parliament into agreeing on budget measures.

PayPal to sue Google over contact breaches

Just hours after Google announced a mobile payments solution, PayPal launched a suit against the company claiming contract breaches.

According to the lawsuit, former PayPal executive Osama Bedier misappropriated trade secrets when he left for Google. According to the suit, he is now “leading Google’s efforts to bring point of sale technologies and services to retailers on its behalf”.

Shares open flat despite strong Wall Street

The Australian sharemarket has opened flat this morning despite a strong night on Wall Street where technology stocks rose.

The benchmark S&P/ASX200 index was up 15 points or 0.34% to 4676.2 at 12.15 AEST, while the Australian dollar was up to $US1.06c.

AMP shares rose 0.5% to $5.21, while Commonwealth Bank shares gained 1.05% to $50.93. NAB rose 0.19% to $26.20 as Westpac lost 0.67% to $22.10.

The Dow Jones Industrial Average rose eight points or 0.07% to 12,402.67.