The best analagy of what's been going on at the big Q as I've been told, goes something like what Murdoch did to Ansett. He used the cash flow from Ansett to build his media empire. Little or no money pumped back into the product which eventually caused Ansett to wither and die. Amazing how many of those same managers who engineered this amazing transformation at Ansett are also in charge of Qantas' grand business transformation too.
The same appears to be happening with Qantas. The smartest guys in the room are using Qantas' cashflow to build their Pan Asian strategy through Jetstar, thereby hoping to cash in on the one place in the world where growth is predicted to be greatest. In the process bypassing the Qantas Sale Act and Australias complex and restrictive labour laws.
Will be interesting to see how much longer this house of cards will remain standing.
The future is bright, the future is Absolutely Orange!
