Originally Posted by
airdualbleedfault
Despite the plethora of flogs (Inc Mr Lim) here that should be running merchant banks instead of flying aeroplanes, nobody has explained in layman's terms how Kwantarse can pay virtually all of their staff significantly more than Virgin and still turn a large profit, if indeed as the experts say the EBAs need to be slashed at VA???????
so my 2 cents .....
QF & VA had way too many staff getting paid too much, BUT QF had larger share of corporate market, who pay top dollar.
You only had to look around at airports, with many well paid staff, standing around doing stuff all between flights.
New QF will have less staff probably being paid less or paid same but with more required (not saying necessarily pilots will work more hours).
New VA, if it gets up (can the administrators stuff it up ? Looks possible) will have a huge haircut in terms of staff & pay & conditions, otherwise a totally new airline will pick up either B737 or A320 aircraft leases for a song & pay nothing like QF/VA have in the past.
A new airline will only have to fly trunk routes more frequently than JQ & have cheaper fares than QF. Govts might have to subsidise non-trunk routes or JQ will fly them at higher fares, which will hurt tourism industry recovery in the regions.
Plenty of experienced ex VA & other airline staff, who would work for a lot less than they were getting, as have mortgages etc.
A new airline might start slowly, hiring only as needed, but in this new world, they could probably start with 6-8 aircraft or less, doing triangle only to offer a schedule better than JQ. Remember JQ will never fly frequently on the golden triangle or will be competing with QF.
What did Virgin Blue start with ? 2 x ex AN B734s wasn't it ? BNE/SYD only ?
Seem to be plenty of venture capitalists around with plenty of cash to fund it. Wouldn't be surprised if some of pay of any new airline was either shares or % of profit.