PPRuNe Forums - View Single Post - QF's Dilemma and the Reasons Why.
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Old 10th Feb 2011, 21:03
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neville_nobody
 
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Right now the rest of the Qantas operations - its frequent flyer business, the low-cost Jetstar division and the freight operations - are having to cross-subsidise the international operations. Cross-subsidisation is a common feature in many businesses with a broad portfolio of operations but this is not sustainable in the long term.
That's a quote from the article which fails to recognise that the mainline business has been propping up Jetstar for years on end. When they should have reinvested in QF they were spending it all on Jetstar and now that is coming back to haun them.

Not unlike the News Ltd-Ansett scenario really.
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