Rumors of unavailable financing are consistent with a Global financial meltdown that I have been watching develop for the past Four years.
Julia Gillards mini budget in December is going to surprise many with its toughness.
My main concern now is what happens if there is a run on Australian Banks.
This is where the Qantas outsourcing wet dream comes unstuck. In a major recession, which is just around the corner, it is the cash costs in an organisation that suddenly start to matter, not the full costs.
In that scenario, having your own staff to do your maintenance is not as expensive in terms of cash cost as outsourcing, because your outsourcing charge is based on the contractors full cost.
In addition with your own in house maintenance, you may decide to make stuff rather than buy, or repair rather than buy new - if it saves cash.
If I am right, which is not often I suppose, fuel suppliers will be looking at the credit terms they give airlines by the end of this coming week.
Last edited by Sunfish; 19th Nov 2011 at 19:23.