PPRuNe Forums - View Single Post - Qantas will be dead in 6 months
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Old 4th Jul 2009, 13:40
  #295 (permalink)  
Metro man
 
Join Date: Jan 2000
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Why then does QF hand customer airline ground handling contracts to the competition.
Because it's cheaper ? Staff putting on a QANTAS uniform have high expectations of terms and conditions and would want the same union working practices as everyone else.

Outsourced companies compete for contracts and have to be cheaper and more efficient if they want to keep them. If you're competing for a renewal of your cleaning contract, your price had better be less than the five or six others tendering. There's probably a clause allowing instant termination in the event of non performance as well. Union problems or strikes are not the airlines concern.

If you're an airline manager and that's the way your competitors are moving you'd better follow or watch them undercutting you with a lower cost base.

IF things got to the stage were a government bail out was needed you can be sure there will be strings attached. Cost cutting will be first on the list.
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