For a variety of reasons Qantas will never die nor be allowed to die.
It employs 36000 people
The ancilliary industries its supports is most likely 10 times that.
The massive void it would create domestically and internationally would be impossible to fill in the short term(2 years).
Politically for the incumbent government its survival would be mandatory.
Ahh, the 'Too big to fail' argument. I think they said the same about GM and Chrysler...
OK, Qantas won't be allowed to die. In an earlier post I predict the airline being re-nationalised instead. If the Govt has to spend the billions, the taxpayer will want something for their investment.
But if you think QF will look anything like QF now, you will be joining those commentators who think that GM and Chrysler haven't changed. The names may have survived, but GM and Chrysler are now hollow shells of their former selves in order to exist in the new commercial and economical environment.
can you therefore explain [away
] the annual AUD $1 Billion profit made by Qantas prior to the global financial crisis?
Without researching the exact oil price leading up to that profit, and what was sold off within QF to get that sort of a number, I would say oil below $50 bbl for an extended period of time, and of course,
prior to the GFC. By the way, considering the size of QF, what is 1 Billion profit in terms of a return on investment? Would be interested to know.
The point of my post was not how profitable the airline industry was in the past, but more to say that in the present environment i.e. lack of cheap credit and lack of cheap oil, the airline industry is now in decline, and the vitrolic attacks on these forums seems to reflect the increasing pressure that those working in this industry are experiencing.
For what its worth, since the advent of commercial aviation, airlines in total have lost more money then they have ever earnt. Aviation may be a profitable industry, but the airline segment of the industry never has been. Want to make money in aviation, then run an airport, a catering company, ground handling company etc.
QF will always be around but the staff are going to see massive change in order to survive.
Expensive oil is here to stay and the current economic problems are just the beginning.
Standby for much worse.
Agree.
