PPRuNe Forums - View Single Post - Qantas spends $300m on space beds
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Old 22nd May 2002, 13:49
  #15 (permalink)  
ftrplt
 
Join Date: Jul 2000
Location: Sydney, Australia
Posts: 431
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TT,

thanks for the response. I hate it when you read about SQ's profit the day after you say its going to make a loss.

Not disagreeing with you as such just trying to indicate that I dont believe its reactionary as you seem to indicate; I believe its more of a commercial decision. I know management is aware of all this stuff but its a matter of priorities and timing. For example, if your seats are still full, do you necessarily have to fit the stuff right now when you can maybe wait a few years?? (my thought as an example, not necessarily what I have heard).

The sleeper seats in business is another example. Geoff Dixon has often stated that Qantas would have to eventually follow suit but believes its a bad idea from a profit point of view. Again, if your greater number of Business seats are full its a fair decision to hold off as long as possible, especially when your focus has been on - Ansett, Sept 11, introduction of B737-800, introduction of A330, start up of Australian Airlines (not much going on at the moment!). He has also said that Qantas have been able to design a layout that fits 2 more seats than the BA layout; maybe a contributor to a delay??

From a basic point of view; if it costs the company more dollars to get your business back than they would make from having you back; the company actually makes less money (not saying this was one of the reasons but could be, again my example).

If you know you are going to be second; why not wait for the next leap in technology and install something better? It would be madness to be last and then still install the same thing.

My point about MH is that they can offer cheaper tickets, as they can survive with a loss; Qantas wont survive if it doesnt make a profit.

Not really staff pride, I just get annoyed with all the armchair experts that think its a pretty easy business, and I do believe there are some smart managers in the company working in some interesting and difficult times. (Not calling you specifically an armchair expert, just the general gist of a majority).
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