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Old 19th Oct 2003, 07:02
  #79 (permalink)  
Three Bars
 
Join Date: Jan 2001
Location: NSW Australia
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Gnads,

Even being QF mainline, I don't know anything more than anybody else here. The Company have obviously thought a lot about it and AIPA may have added their two cents worth, but basically it's all very close to the chest.

But when you're talking about whether to use mainline pilots or not, have a look at what happened with Australian. Originally we were told that it would be all new aircraft, but instead they painted up exisiting airframes for the new venture. They also used mainline crews operating to the Australian contract. Why? Well to me it seems to be that if it all gets too hard (or unprofitable) they can just close up shop, respray the planes and tell the boys to wear their mainline uniforms to work tomorrow.

The new LCC thing could be started up the same way. It would make a lot of sense to use 737s, which are already operated by SH and then phase out the old 737-300s (probably to Jetconnect's trans-Tasman operation). By offering slightly reduced pay levels for captains and FOs, they would find plenty of takers to take these slots - resulting in the required labour cost savings. As unsavoury as this proposition is to many members of AIPA, this method of business at least ensured that Australian pilots were from the mainline. New hire cabin crew and ground staff working under much tighter contract conditions would be where the main savings would come from.

Their respective unions also wore this scenario for the formation of Australian airlines, since no existing mainline jobs were lost. It could work again in this instance.

Now I'm not saying that I particularly agree with any of this. But QF's problem, in my opinion, is that people expect to get the old QF service level (from ten years ago - booze, entertainment, movies, meals etc) for the Virgin Blue price. Attempts by QF to save money in product delivery and compete directly with VB are seen by the public as a deterioration in the QF product and provide any even bigger incentive to travel with VB. This has led, in my opinion, in QF seeing the need to form a new carrier that can compete head-on.

I hope that it will not be a disaster! I hope that it will make QF more profitable! I hope that it will be crewed by mainline pilots! But mostly, I hope it gives those smug little smarties in VB management a real kick up the butt!
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