"Qantas is one of the best-run airlines in the world,'' said John Gethin-Jones, general manager of global equities at Queensland Investment Corp., eighth-biggest shareholder in Qantas with 20 million shares . "Compared to many other chief executives, Dixon's very focused. He has a very succinct and credible strategy.''
Of course he would say that. Dixon is interested in one thing and one thing only, and that is his self professed
"Race to the Bottom Line". Why? Because it produces immediate results in the back pockets of the shareholders and directors.
What about harmonious employee-employer realtionships, what about creating an environment where job security, conditions and remuneration is not continually under threat.
The airline on June 22 announced plans to base 400 of its 4,000 international cabin crew in London to save A$18 million a year in hotel bills and travel allowances. The move riled unions, who have threatened to strike over the loss of allowances.
Oh thats right....its all about the bottom line.
Labor accounts for 28 percent of Qantas's costs, compared with 22 percent at Singapore Airlines and 21 percent at Brisbane-based Virgin Blue, according to Bloomberg data.
Well SIA has a track record of treating employees like a number and extracting maximum work for minimum conditions. They are almost as one tracked as Dixon is.... The only difference as I see it is that in Australia, the union voice is still vocal and proactive. SIA regards the right of an employee to speak his mind as crimminal and "unpatriotic".
Virgin Blue is by defination a LCC!!! Of course its going to have a lower labour cost base. The structures of QF and DJ are totally different!
One is a full service international airline with multiple subsideries, and the other is a domestic service focused on offering the cheapest no frills deal by providing a no frills service.
Apples and oranges.
If Dixon thinks he will be able to reward staff like a LCC, but still operate a full service airline, he should open his eyes....... or pehaps just reduce his own paypacket and bonus.
CF2