Why are Qantas competing on price?
Watching what Qantas has been doing has had a lot of people thinking. My thoughts are the following;
Everything that has been said from Qantas has been based around cost. The theory is that their competitors run on a lower cost base and hence Qantas can't compete.
My question is, why compete on price? Don't Qantas have Jetstar to compete in this field? No matter how many costs are cut, how could an Australian Airline ever believe that their costs would match a competitor where wages are so far below that of Australia? Surely, it is a case of whatever you can cut, we can cut more and Qantas will always find itself behind in this field.
What would happen if Qantas changed their thinking to believe that they need to compete using their strengths, rather than their weaknesses? Could they compete on quality of product and charge more for the privilege? Would the flying public be willing to pay more to fly on Qantas, knowing that they were guaranteed to receive a superior product, excellent service and a better travel experience?
Picture this. Qantas running an advertising campaign to promote the following:
1. The use of the newest and best Aircraft available
2. The use of highly experienced and well trained Australian Engineers who provide the best maintenance standards possible for these aircraft.
3. The amazing service provided from their motivated, caring and passionate staff from airport arrival, to the experience on board, all the way to the departure from the airport.
4. The new and innovative services, food, entertainment systems etc provided that once again make Qantas a leader in airline travel and worth paying a premium for.
5. The fantastic destinations that can be reached on Qantas Aircraft using the Qantas product and service.
Would the travelling public for this iconic brand, known positively all over the world, be willing to pay a little extra to receive the kinds of advantages listed above knowing that no matter what happens on their journey, they will be well taken care of?
If the answer is yes, then this would allow Qantas to compete on the strengths that they once enjoyed and should allow the airline to set a path for long term success. Get the product organised and the staff motivated to achieve greatness for their customers and company. They may even find that people are more willing to negotiate fair and reasonable pay and conditions to allow the airline to prosperunder these conditions.
Qantas has the benefit of a great name and reputation and it also has the benefit of using Jetstar to compete on price. Qantas should now compete on quality of product and ensure that customers are willing to pay a little more to receive it.
They are my thoughts, what do you think?