Originally Posted by
longjohn
I see this from a quite different perspective.
VA, initially under BG and then accelerated under JB, has bought market share. Yes, you are correct, it costs a lot of money to buy market share.
Meanwhile, whilst VAH were booking massive losses as they bought market share (especially premium / corporate), QF were still maintaining profitability (FY13 excepted).
Clearly this strategy has failed.
Why should the Australian taxpayer fund VA’s failure?
That depends whether you consider the $1.4B to be a funding of thier past failures, or funding of thier future prospects.
The past is in past, and I believe their future prospects were comparatively bright before the the goverment enforced lockdowns.
Why should the taxpayer fund a bailout? Because they will benefit more than it will cost (individual opinions will vary).