"This paper examines the experiences of Qantas and Aer Lingus. The two companies have a shared history as national, 'legacy' (full-service) carriers and strategically important, 'benevolent' employers. More recently, both airlines have been forced to change in the face of competition from low cost carriers (LCCs) and external threats to their existence. In this paper, we examine how the two airlines have reacted to these pressures. We look at the role played by institutional frameworks and competitive circumstances in determining industrial relations strategies. The entry of LCCs and changes (or potential changes) to ownership structures through privatization and takeover bids have led to downward pressure on pay and conditions at both airlines. Accordingly, a key issue considered is whether a collectivist model of employment relations can survive in the face of low cost competition. "

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