PPRuNe Forums - View Single Post - Lower-cost subsidiary for Qantas?
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Old 14th Aug 2001, 16:29
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Taildragger67
 
Join Date: Aug 2001
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There are loads of places with cheaper labour than Australia. QFA already have BKK- and AKL-based cabin crews (local hires) on cheaper contracts than SYD-based. Who knows, they might be able to cheaply pick up, say, 50 wide-body drivers soon... It's not just crew costs - it's getting out of paying for add-ons like FFP miles, lounges, being able to park miles out & bus the punters in (or maybe doing a Ryanair & going to out-of-town strips), going for faster turnrounds (ie. higher a/c utilisation) - so it's not just crew costs... even then, if you don't have to paythe same levels of payroll tax, pension/super, workers comp insurance and all the other on costs, then even for the same salary, it can be cheaper to employ where the social costs are lower.
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