Professor,
It is indeed true that full service carriers have higher costs than those of low cost airlines.Your post is poorly argued and in my eyes a "wind up".
To blame pilot salaries as the make or break difference to the Qantas group shows your lack of understanding of basic airline operations.Obviously you have little grasp of different business models given the lack of depth of your argument.
As a full service carrier the costs are higher due to cleaning of A/C on turnarounds,increased catering costs for business class and economy, amenities, provisions for valet parking etc etc.The extra yield compensates for this.
LCCs rely on high frequency flights with short turnarounds.Food is charged for and cleaning is done by cabin crew on transit.Ticket sales are by majority internet based which lowers costs.Ticket protections are not equal to full service carriers either.
Full service airlines target high yielding customers and the business model is therefore different.
Below is a quote from Geoff Dixon on Lateline business with Alan Kohler.
GEOFF DIXON: You've got to understand, the Qantas mainline operations also earns a much bigger margin than the Jetstar. Jetstar is a low cost airline and a low fare airline, and that's quite different. Qantas is a medium cost airline. Obviously we have a different product, we put more money into that product but we get quite much larger fares for business and first class travelling.
To further provide rational debate I provide further company information.
The company says by the beginning of next year the Qantas Group will have a lower cost base than rival Virgin Blue. Qantas will get greater efficiencies when it introduces new aircraft and it's well down the road of restructuring its business, developing the freight and fleet ownership divisions and mooting a new, still unclear ownership structure for the frequent flyer program.
Professor you obviously know how to run an airline better than our CEO.
For your information Southwest pilots are paid more than both Qantas S/H pilots or Jetstar pilots.
A low cost airline model does not need to translate to poor pilot pay and conditions.In the case of Southwest the pilot terms and conditions are excellent along with morale.
The aim should be that all Qantas group pilots are represented by one united association.
Jetstar and Qantas pilots BOTH deserve good pay and conditions.We are all highly skilled and a profession in short supply.
Your divisive comments are not welcome here.
