$3m collision between Virgin and Jetstar planes at Melbourne Airport blamed on cost cutting A COLLISION between two aircraft that caused up to $3 million damage at Melbourne Airport could have been far more serious had the impact been a metre closer to a spinning engine, airport sources claim. A direct hit by a reversing Virgin aircraft on to the running auxiliary power unit at the rear of the Jetstar A380 might have caused spinning components to fly out of engine casings and the potential for fire, Australian Licensed Aircraft Engineers' Association president Paul Cousins said. Mr Cousins estimated the damage bill to both aircraft at $2 million-$3 million and blamed the accident on Virgin's decision to replace licensed engineers with lower cost ramp staff to conduct aircraft reversals known as "push backs." "The money they have saved over the past 12 months (by the changes) would have all been swallowed up as a result of this," Mr Cousins said. Virgin flight VA1507 to Maroochydore, with 175 passengers on board, was reversing out of its terminal bay when it struck the stationary Jetstar aircraft, which had its cautionary lights flashing and was awaiting placement of an airbridge and approval to move into another bay. The Jetstar tail cone was smashed off and a wingtip damage inflicted on the Virgin jet in the incident about 9.35am. But another airport source said Virgin would be pointing the finger at Jetstar and at airport control tower staff who gave final approval for the push back. The source, who blamed the incident on the "casualisation of the workforce" and cost-saving ground staff changes, said control tower staff might have also had their view of the situation compromised by tarmac apron works. "It was as if we ran over something ... oh my God, we've just hit another plane," passenger Luke Grima, 45, of Bentleigh, said after being disembarked from the Virgin plane. "When we looked out, we could just see the end of the wing had come off and the other Jetstar plane has got some pretty serious damage to its rear," Mr Grima said. Melbourne Airport spokesman Matt Francis said a full investigation was under way. "The incident involved an aircraft pushing back from its gate for departure, and an aircraft, which was holding for a gate," he said. No passengers or air personnel were injured in the incident. Damage to the wing of a Virgin plane after it collided with a Jetstar aircraft while reversing at Melbourne Airport Picture: Jetstar spokeswoman Emma Kearns said their aircraft would be out of service for several days. One ground staff member said employees were being asked to work harder and with less resources as budget and other airlines pressed for investor returns and airline executives were rewarded with bonuses. Airservices spokeswoman Amanda Palmer said four firefighting units attended the scene as a precaution but there was no fire. Ms Palmer said she was unable to comment on air traffic control staff who give final approval for push-back given the investigation was under way. Virgin Australia spokesman Nathan Scholz described the 737's wing damage as minor, but said it would take some time to assess and repair. The Australian Transport Safety Bureau is investigating the accident.