PPRuNe Forums - View Single Post - Qantas~ A Business in Decline
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Old 4th Feb 2011, 08:45
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PPRuNeUser0198
 
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I don't know why it is so hard to understand - Qantas cannot get the 777 now - it is too late. They've committed to the 78.

Remember that when the future fleet plan was devised, delivery and operation of this type would have already occurred. You would not be seeing these clapped-out 76's still flying around. They took a punt on two new aircraft types - risky? Yes, however they did that and suffered on both accounts (both types delayed).

Whether that was the right or wrong thing to do is in the past - the fact is Qantas cannot go with the 777 now, too costly and not workable considering the 78's are slated for delivery.

Delivery to Jetstar first - yes. A necessity. Jetstar needs to grow, in particular their pan-Asian strategy. Jetstar needs to capitalise on economies of scale to reduced costs and deliver better returns especially now where there is over-capacity in the market and yields are taking a hit. Scale benefits only come with growth and the delay in the 78's is preventing that growth, which is also allowing competitors to enter the market before Jetstar.

You've got to move on re the 777. It is not going to happen - we're too far past that now. It's 380's and 78's. End of story.


Last edited by PPRuNeUser0198; 4th Feb 2011 at 09:16.
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