PPRuNe Forums - View Single Post - Qantas~ A Business in Decline
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Old 14th May 2011, 01:36
  #175 (permalink)  
Oldmate
 
Join Date: Jun 2005
Location: Aus
Posts: 139
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Metro,

To look at it from another angle, how many people pay a bit more for a mercedes car even though a hyundai is cheaper, how many people stay at a hilton hotel even though the local backpackers is cheaper, how many people pay extra for a swiss watch when a chinese one also tells the time. The reason these more expensive products survive in the market is that you get what you pay for.

The reality is that the difference in crewing costs between Qantas and its competitors is NEGLIGIBLE, and more than offset by the good outcomes in events such as the QF32. The real cost difference between Q and the others is fuel. While competitors have spent money upgrading to more fuel efficient aircraft, Qantas have wasted money on starting a low yield, ego driven low quality carrier, and on bonuses to the former CEO.
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