My whole point is quite simple, very few other industries are run in specific tax haven (or close to it) areas that make them very difficult to compete against. Most countries require some tax rate that falls within a normal range when they tax companies and or individuals. Why are we allowing countries to manipulate their tax or more particularly, the areas in which they pay their normal tax rate, without response? We manipulate tax rates between the states in our own country (think Virgin startup) and yet we don't see it or want to address it when it comes to international predatory nations. I think we need to get a voice as an industry, not just as one employer or one employee group. We need a rational response from our government otherwise internationally we're stuffed.
Qf1, my reference was purely to a constant in maths (you've probably got a degree in pure mathematics now that I've said it!). When it comes to oil for example, Australia must calculate the cost to transport the oil from overseas to Australia, plus the cost of the oil, PLUS the cost of the return of the vessel. Then we can compare the cost that it would be to produce it locally (assuming we could). Normal global trade occurs like this in most industries.
Similar occurs when it comes to normal goods with containers but usually you would pay less transport costs because the shipping company effectively gets a "back charter", i.e. you don't pay for the return of the vessel. When you buy a good from overseas, it is consumed here and another good is sent overseas as an export. However, in aviation this only occurs with freight (and peolple immigrating or emigrating). With passengers there is no consumption of the good after travelling in one direction. In fact, if the person travels from A to B first then B to A or B to A first then A to B is irrelevant. They are still travelling between A and B or B and A BOTH ways. Given the cost of aircraft is roughly constant, the cost of fuel is roughly constant you can remove them from the equation. What you have left is direct comparison of taxation policy and wages. We continually hear about the wages, what about a little more noise about taxation policy?