Owen Stanley:
Mate I don't wish to be rude but I don't think you could even explain (or understand) the effect on debt vs. equity to a publicly listed company let alone the effect of the pricing of factors of production for an airline.
If you don't agree or understand the cost of factors of productions for airlines and the effect of labour inputs on profit from revenue don't ask for an explanation on an internet forum.
I can recommend a few courses for you - PM me for them if you wish. I can provide you with some Masters level courses that will explain everything for you although I fear you wouldn't even gain entry.
As much as you wish it isn't that simple. What I will say is that is if you increase the cost of labour it has a significant effect on profit from revenue. Especially for a company with the payroll of QF. Many factors don't have a 1:1 relationship (i.e. $1 more means $1 less profit)
If you wish to look at what people think of the way QF has been managed take a look at the current share price (since the private equity takeover failed).
Last edited by Pass-A-Frozo; 25th Sep 2007 at 14:31.