Macquarie Bank
As we all know Macquarie Bank are never wrong about anything and everything.Warren Buffett has often said that airlines are a poor investment.There are those that believe that unions are responsible for Qantas' woes.Unions are not responsible for the purchase of aircraft or the development of a network or the cost of borrowings.In fact unions make no managerial decisions whatsoever.The only cost that unions seek to influence is the cost of labour.The cost of fuel and the purchase cost of aircraft are outside their jurisdiction.
The total cost of labour for the Qantas business is 16% and has been declining for the last 10 years.
The wages bill for the Qantas Exco and the board are substantial and much higher than a comparable size airline.
The trouble at Qantas has its roots in the merger with Australian and the subsequent loss of operational expertise.Many of the executives now running Qantas were at the helm of Ansett when it folded .They are now weaving their magic at Qantas.One only has to look at Virgin and its accomplishment of the last 12 months to recognize the ability of a very competent CEO.
If John Borghetti was running Qantas it would not be in the mess that it now finds itself.
Scapegoating the unions for management incompetence is the oldest cliched spin on the planet.There are still those naive enough to believe it
Last edited by Crossing Guard; 23rd Oct 2011 at 06:03.