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Old 26th Aug 2011, 15:27
  #709 (permalink)  
TIMA9X
 
Join Date: Apr 2009
Location: London-Thailand-Australia
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Well, they are starting to ask the right questions

Qantas loses altitude due to brinkmanship

Alan Joyce is a diminutive character with a broad Irish brogue, a lilting accent combined with an easy charm. There's no doubt he is confronted with a monumental challenge, what with wildly fluctuating fuel prices, a competitive onslaught from heavily subsidised carriers from Asia and the Gulf, fickle demand and an uncertain global economy.
But the longer he continues with this strategy of trash-talking Qantas, the more he runs the risk of damaging his own credibility and that of the airline.
Take his angry outburst on Wednesday at the press conference to announce the results. Long-haul pilots had accused him of cost shifting within the company, that Qantas international was subsidising Jetstar operations, a claim repeated by Senator Nick Xenophon.
According to Joyce, that was ''in line with the moon-landing conspiracy theory that we didn't land on the moon''.
''It's in line with Elvis is alive and well and serving in a McDonald's somewhere in Manly. Qantas subsidising Jetstar is another one of those great conspiracy theories.''
A simple denial would have sufficed. Let's face it, everyone knows Elvis is working in a pizza joint on the Grand Parade in Sans Souci. Just as everyone knows that every company cross-subsidises costs from various divisions when it suits them.


and this,
Qantas is a fully integrated airline. It has domestic, international and budget operations all run through a single frequent-flyer rewards system. It should have integrated back-office systems. If it hasn't, the question needs to be asked - why not?

International passengers flying into Australia are directed onto Qantas domestic or Jetstar flights. The notion that Qantas international somehow is a stand-alone operation is ludicrous because it would be impossible for the company to operate without it.

Earlier this month, Joyce unveiled his ''five-year plan'' for Qantas, a high-risk push into Asia with two new airlines - a domestic operator in Japan and an upmarket full-service carrier in south-east Asia.Exactly where that will be has yet to be decided. Perhaps Kuala Lumpur. Maybe Singapore. The paucity of detail would suggest this merely is an idea, not a concrete plan. Again, this may simply be part of the broader threat against the unions with projections of 1000 job cuts.

Qantas's previous thrusts into Asia have been less than spectacular. Jetstar Asia, based in Singapore, only recently managed to edge into the black, six years after it was established. And its internal Vietnamese operation, Jetstar Pacific, has been a nightmare, financially and politically.
my bold
Now the media is starting to get the message, this is very encouraging, it's in the Saturday press, the biggest day of the week for newspaper business stories

enjoy.
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