From a martin Wolf opinion piece today:
Why rigged capitalism is damaging democracy
As the US essayist HL Mencken wrote: “For every complex problem, there is an answer that is clear, simple and wrong.” Pay linked to the share price gave management a huge incentive to raise that price, by manipulating earnings or borrowing money to buy the shares. Neither adds value to the company. But they can add a great deal of wealth to management. A related problem with governance is conflicts of interest, notably over independence of auditors.
Qantas have been spending enormous sums buying back shares to enrich management and not investing in more to improve productivity with newer fuel efficient aircraft. Exactly the problem Wolf argues more fully in the article. Joyce sits atop a monopoly gifted to him - through control of domestic slots and terminals and he is going to screw everyone else over to reward himself obscenely and well beyond any economic justification simply because he can.
A peruse of the
Sydney Airport Slot Administration Manual will reward the reader with the "how" slots are very carefully controlled into the Jewel In the Crown. Control SYD, and you control the domestic network profits. There is a very cosy relationship between QF, Virgin and Rex. Shareholding and voting rights of Airport Co-ordination Australia Pty Ltd (ACA), section 3.2.1, page 12 is the meat and potatoes.