Originally Posted by
ExtraShot
We keep hearing about these ‘Virtual Airline’ business models, but I can’t really think of one off hand. Where you might say codeshare, etc; all airlines use codeshare and the like to give its customers a slightly improved route network, this is hardly said business model. Every airline still flies its own metal on the routes where it can get the loads it needs and make money... people want to get the product / brands they pay for, and if they don’t get it they’ll go elsewhere.
Qantas is going to be increasingly competing with airlines that have already had more modern and efficient fleets for a decade. Most are already taking a step-change again, leaving Qantas at risk of being an entire generation behind, AND playing catch-up.
Qantas employees are constantly told they are too expensive, or that their Western Terms and conditions are uncompetitive in an Asian region, yet when it comes to making serious strides where costs can REALLY be impacted in competing with SQ and Cathay and the like, the current management seem to drag their feet.
Unfortunately for the IR bullies, using aircraft orders will no longer be effective as a tool in an industrial battle. The staff (pilots/engineers/and others), are now increasingly aware that either Qantas gets serious about a fleet renewal program, or it gets annihilated by it’s competitors who have been serious about it for a decade or more already. It’s only a matter of time before the share market becomes aware of this as well.
Alan Joyce has been at the helm for almost TEN years, and I can't think of one new aircraft order made in that time... but the time has come. They need to outline a fleet renewal program for the next decade, and it needs happen relatively soon.
Rated De is correct.
No, he is not.
Qantas' labour cost base is higher than almost all of its competitors - especially those in Asia, Middle East, New Zealand and South America. If you want an example of a virtual airline, try looking next door at Virgin. If there were easy millions to be made operating a full service international airline out of Australia with modern aircraft, Virgin would be expanding rapidly internationally. Look at the fares being offered to Europe by the Chinese and Middle East carriers. QAN offering these fares would not only be economically loss-making, they wouldn't even be cash flow positive.
I understand there is a strong view among some senior QAN people that no more investment should be made into QI. The 777X or A350 project is a once in a generation opportunity for QI to have a future of growth, but the numbers have to add up. Don't assume that they will.