PPRuNe Forums - View Single Post - Qantas~ A Business in Decline
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Old 7th Feb 2011, 04:19
  #131 (permalink)  
aussie027
 
Join Date: Mar 2007
Location: Perth, Australia
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Blubak, well said,exactly.

As everyone has been saying mgmt forgets that aviation is a "service industry" and people want/expect good service and if they don't find it they will go elsewhere.

The other side of the coin is that most are no longer prepared to pay much for it as they expect to fly for less than the cost of a cab/bus ride on some routes. In economy that is at least. Hence the lower cost model airlines.
That has become the norm due to cutting fares to unsustainable levels.

Now if you try to put your fares up even a few dollars punters will fly with someone else to save ,literally $5-10. Same has happened in USA years ago.
I still remember a front page story in 2006 where a major (Delta) couldn't risk putting up fares $5 on some routes due to its fear of losing out to its competitors on those domestic routes.

People paying top dollar in business or 1st class definitely expect the best, they are prepared to pay for it.

As has been said, the many adverse business decisions made by mgmt over the past 15-20yrs has taken a huge toll and may not be fixable in the long term, despite anyone's best efforts.
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