Dixon back to earth with a thud!
Back to the Michael Pascoe article.
Interesting to see how GD and his band of merry management team address:
Rising fuel costs,
Rising interest rates,
Smaller aircraft,
And the LLC model of Jet* International and Jet* Domestic.
When you read that the American carriers are reducing costs by removing such things as ovens and drinking water – they the American LCC’s have a market reach of close to 300 million people.
300 million people having to rethink their budgets may mean that the domestic ‘trip of a life time’ to say Orlando (Disney World) is put on hold for x years. The international ‘holiday of a life time’ to say Paris is put on hold for even more years.
Now think Australia – GD has 20 million to think of only, but with our rising fuel prices and potential increase in interest rates how many will be able to afford the one time in say, 5 year trip to the Gold Coast to show the kids the theme parks – flying Jet* or Virgin?
I have never heard of Vietnam, Japan, Bali and Phuket as being the trips of a life time for Australians. Young people still head off to the UK/Europe for their 12 month ‘adventure’ – with perhaps a stopover in say Phuket on the way home.
Families save and consider LA and Disneyland as the trip of a life time or take the family back to the old country to see grand parents, etc. You’d assume that they may still consider that but put the trip off for another year. . I can’t see the new Jet* routes being that important with the exception of Bali for flights out of Perth. How long did Australian fly to Sabah? will Jet* pull out of Phuket after 6 months?
When the concept was in its infancy, did GD not consider that fuel costs would continue to rise? Did the analysts within the Finance branch earning 75K not know that rising fuel costs mean a rise in the costs of consumer goods and to keep things in check the reserve bank (usually) raises interest rates, meaning that families start to budget more and reign in their costs?
Perhaps that’s why good finance team analysts do not join QF for 75K when they can get 10k, 15k, 20k and more elsewhere.
Interesting times ahead for GD and his band of incompetent managers (that would be what, 3 levels down meaning about 10000 of them).
This changes tact I know, but thinking about management, I recall that it was always a big thing for managers on duty travel to get into P & J class for both duty and leisure travel and wouldn’t know what it’s like to sit down the back. That point makes me wonder – does anyone know the last time they saw or heard of a senior manager travelling in Y class (and I don’t mean SYD-BNE) I mean SYD-HKG, SIN-SYD, or heaven forbid SYD-LHR?. Do the Jet* managers fly MEL-SYD on Jet* or do they travel up on QF in J class?
Ex