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Australian airport strike to continue indefinitely

SYDNEY: A baggage handlers' strike that has disrupted flights to and from the southeast Australian island state of Tasmania and left thousands of passengers stranded would remain in place "indefinitely", a union official said on Sunday.

The strike was called on Saturday by the Transport Workers' Union (TWU) against plans by Australia's second airline Ansett to contract out baggage handling at Tasmania's Hobart and Launceston airports.

TWU official John Allan told AAP newswire the strike, which had disrupted travel for some 5,000 passengers, would not end after 48 hours as was originally planned.

"We expect it (the dispute) to be escalated tonight, with Ansett serving notices on Launceston employees," Allan said.

Ansett is expected to announce later on Sunday that it will make around 40 workers redundant as baggage handling was contracted out.

Tourist authorities said the stoppage could not have come at a worse time, with Tasmania hosting cycling, tennis and World Cup swimming competitions.

The action affects Ansett flights and those of its Kendell Airlines subsidiary. Rival airline Qantas has expanded its service between Tasmania and the Australian mainland to meet the additional demand. -Reuters