Originally Posted by
Toruk Macto
Sure, it might take a while, but it would be nice to see Alliance or another Australian owned operator take the mantle if required.
Australia won’t have awhile once the green is given to get back to work . Governments will be stimulating their economies , mines will be ramped up and lots of pent up holiday makers probably looking at flying domestically .
The government won’t be happy to wait awhile for a new RPT company to find its feet , purchase aircraft and train crew . Should VA fail , probably ? Would the economy be $1.4B better off if virgin where around next year ? More than likely .
The domestic travel industry generates no more income for the economy than the gambling industry or the sex industry. It simply transfers money from one region to another with no net gain. In fact because of fuel, aircraft leases, insurance, internationally owned hotel chains, car hire companies, etc there’s a net loss for the nation.
International tourism is different. But it’s debatable whether we’re a net importer or exporter of international tourist dollars.
This goes to the very heart of what’s happening in Australia. 30 years of uninterrupted debt generated growth has rewired us. We’ve reset to relatively high income service careers and virtually abandoned manufacturing and producing occupations that actually generate wealth for the nation. Apart from primary industries and mining our major net importer of income is the education sector, along with the immigration sector. The last two will be in hiatus for quite awhile along with the cheap credit that has fueled our misconception that we’ve generated wealth.
We’ll all get through the other side of this in good shape regardless of what happens to our respective airlines, it’ll just be a different shape. We’ll all have less disposable income which will swing the pendulum away from service industries back to production and manufacturing. It’s probably a reset that was overdue and would have happened anyway.