Peete:
his demise of industry and “modern” life began centuries ago when at the beginning of the industrial age corporations were given the rights and freedom of humans beings. A corporation is nothing but a process linking owner, employee, and customer. All equally important because they are human. The pigs are in the farm house and have been for a centuries, growing arms and legs, there is only one way all this will end. Mother nature always kicks in and puts everything back into balance. We could start in our own backyard and remember what airmanship once was
Errrrrr...............no. The joint stock company was invented by the Venetians around 1300 AD. To do two things that it still does extremely well today:
(a) Manage RISK, by allowing people to spread their assets over a number of companies and therefore reduce their overall risk levels.
(b) Provide a vehicle for undertaking commercial ventures that require more money than any one individual posesses or can borrow.
This facilitated the growth of the Venetians trade since the sinking of one ship no longer spelled ruin for a particular merchant.
The enabling technology for the joint stock company was double entry bookeeping (every credit must be matched by a debt or debit), invented by Luca Pacioli around 1300AD, and at whose tomb in San Sepulchro I have lit a candle and said a prayer.
PAF:
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)
My, my, you keep harping about your education in the business world PAF, yet of course your knowledge only comes from theory. Furthermore the subject on which you are prattling is about an hours read and not difficult at all. Sounds to me like you are simply behaving like an intellectual snob - recommending courses indeed!......
.....but in any case you conveniently miss the point - which is a discussion of the obscene amounts paid to Senior Management who are managing an underperforming airline.
Care to comment on why QF's returns are so low PAF?
Lets hear your wisdom about return on capital employed, fixed and variable, direct and indirect costs???????
Care to talk about contribution margins - probably QF's most closely guarded numbers?
Didn't think so.