Suddenly Qantas domestic isn't returning its cost of capital and he has the same argument as used with International and starts to reduce the domestic fleet while expanding Jetstar.
That has been my working thesis for quite some time. This is an asset strip - transfer all the crown jewels to Jetstar, sell it off to those "in the know", and throw the QF carcass to some other sucker ( Joe Public as an IPO post APA, now it looks like being the government). So it is no surprise to see calls to (drum roll please)
Nationalise Qantas International!.
From the article:
What does Qantas need to do to compete against these airlines? If the Australian government is not willing or able to provide support, they should split out the international business and sell it to the government.
Under government ownership, the new international business will "internalise" the considerable benefits associated with inbound tourism.
Read more:
Nationalise Qantas International!
Will the shareholders will wake up after the event and realise that they have just been ripped off blind by the (former & current) management? It would seem that the custodians of their money might just be in on the game too. The 1% looking after themselves, screwing everyone else.