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Old 25th Jul 2008, 21:19
  #4045 (permalink)  
Sunfish
 
Join Date: Aug 2004
Location: moon
Posts: 3,564
Received 90 Likes on 33 Posts
QF94, your belief in your own uncompetitiveness is tragic. I pity you.

Once QF have taken the final step of disinvesting in heavy maintenance and puts its faith in SAECO, HAECO, etc. you will find out the hard way what it's like to be screwed.

The Asian MRO's will collude, but it will take you a while to find out that.

Furthermore it will be THEM not YOU who get the experience dealing with the A380 and B787 (especially sophisticated composite inspection and repair), effectively putting QF totally behind the eight ball.

To put it another way, you will be price takers because you will simply not even have the necessary engineering brains to even work out if you are being screwed by your MRO's or not.

It will then take you about five years heavy maintenance to realise you are being screwed and that the prices set are designed to be 1% below the cost at which it makes economic sense for QF to take the work back in house.

In other words, you are not going to save a penny, but QF management don't care, and the ones who make the outsourcing decision today will be long gone by the time the damage is apparent.

P.S. News article yesterday is that cheap Chinese goods are going to get more expensive as the Chinese factor in increased material costs and labor costs. The process of reducing their competitive advantage has well and truly started.
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