Originally Posted by
Icarus2001
Okay 43, Virgin appears to be in profit, Alliance is in profit, how many more excuses do you want to make for REX?
Not making excuses for Rex just saying the QF super profit is because half their flights were pre paid, and then paid for again, after the company received subsidies to be cost neutral during covid. The double loading of old booking plus new bookings and aggressive cancellation policy inflated the price of seats so that new and existing customers were effectively paying double. Theres a reason the spotlight is on QFs behavioure since the pandemic. Rex was quick to re emburse passengers, where QF offered credits only.
The smart/devious part to QFs plan was that they manged to turn a liability into a capacity constraint and resell already sold seats, that is credits used on the exact same flight had to pay extra for the same service. Plus use that pre booked capcity to charge higher prices for new passengers.
VA is possibly profitable because they had all their debt wiped and started from scratch with pre existing customers, established network and a workforce on effectively 20% less.
Alliance is a Fifo operator that basically cant loose money.
Rex is expanding a new fleet and dealing with its management sins of the past, both dragging on the company.
PS in regard to how weak Australian consumer law is, our travel plans in the US when disrupted were offered 3 different options, full refund, re booking on like for like service no cost at a future date at the companies direction or credits to the value of 125% of paid for future use. QF group and VA had one choice of credits to only the value paid, Rex offered full refunds for Covid disrupted flights and so on.
As a result there are numerous calls out there to change the consumer laws, and QF group is in the news every second day with disaffected passengers who have lost credits, been charged double for flights, cancellations that have incurred change of flight charges etc etc.... Fine if you have choice, but when one company runs 60%+ of the market there's not much choice out there.
Alan might be a dick, but he knows how to generate profit from a stone, and still by the law, even if it does lack morality and compassion.