Qantas grounds all flights

Unions representing engineers, baggage handlers and pilots have engaged in protracted industrial action over the Australian flag carrier's plan to establish new Asia-based carriers to better tap rising regional demand and lower its cost base. Some of the unions are also making pay claims that Qantas says are excessive.

Thousands of passengers world-wide have been affected, with more than 13,000 booked to fly into Australia over the next 24 hours. Some 108 aircraft were grounded in 22 airports around the world.

Refunds have been offered, and Qantas has promised to pay for food and accommodation to those in transit.

Rival airlines, including Virgin Australia, seized the opportunity to say they would boost capacity.