I get a bit confused with the Qantas business structure.
Is it just me or is the Qantas Group (Holding company rather than the collection of subsidiaries) acting like a private version of CASA with its 'Franchises'? It seems that they are not interested in the day to day responsibility for operations, only for policing it in the sense that the standards are requirements within the 'franchise' or brand agreement.
Alan Joyce told the Senate Inquiry that Qantas (not sure which part) only has a minority shareholding in operations such as Jetstar Asia and Jetstar Vietnam, he said
we do not have the same responsibility for those entities, because we are a minority shareholder; we have a brand responsibility for them, Other shareholders have the majority of those entities. We have a brand responsibility to ensure that safety meets the standards applying to the brand.
and went on further to say
Under the brand agreements we do [have the authority to enforce the same standards that would apply to Qantas and Jetstar Australia]. We have the ability to withdraw the brand if we are not comfortable with the standards applying to those entities.
when questioned further by the astute and Switched on Senator X Joyce replied
It gives us very strong influence over the standards, and allows us to make sure that we are very comfortable. We would not have the brand on these entities if we were not comfortable that these met the high safety standards.
On top of the analogy to being a regulator, Does that mean Qantas 're-sells' the benefits and concessions granted to the Qantas Group by CASA, IASC etc. to any Tom, Dick or Harry that is willing to enter into a franchise agreement with them?
Sounds like the Qantas Group is purely an entity to sell, monitor and enforce brand agreements rather than controlling anything on a day to day. I see a fundamental problem here in terms of safety!!
Take the latest reports of expansion into the Japanese market. This would allow Qantas to re-sell, without further reference to CASA or the IASC the right for a Japanese operator to operate domestically under the guise of Jetstar international tag flights.
Think the Senator is onto this in any case.
The Kelpie