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Thread: Qantas At War
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Old 7th Sep 2006, 23:33
  #40 (permalink)  
king oath
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Aircraft is obviously no businessman.

If you sell a product at little or no profit margin you will get good market share. But you will go broke.

Eg, The local bottle shop buys a slab of VB for $23 wholesale and sells it for $24. I'll buy from him ,but he ain't going to stay in business very long, unless he's got a parent company such as Woolworths copping the loss purely to gain market share and pressure their competitors.

In the case of J* they have a parent company paying a lot of their costs and overheads. The small profit is a paper profit. Someone's paying by losing money and that someone is Qantas.

Here endeth the lesson my son.