Investors have expressed reservations about Qantas delaying the delivery of the A380s, saying it was pursuing short-term gains at the expense of long-term growth.
Will Seddon, a portfolio manager at White Funds Management, said Qantas was delaying efficiencies brought by new A380s, which would be critical to turning around its loss-making international business, in order to defend itself in the domestic market from Virgin's advances.
''It seems to be illogical and not great for investors. They shouldn't be taking the bait this easily. The key metric is not market share, the key metric is profitability,'' he said. ''As an investor, I would be concerned now that there is a market-share war going on, which is ultimately going to translate into a price war.''
It appears the mood is changing with some investor analysts, certainly not as positive as this time last year.. The market has shifted on the domestic front to become an interesting battle. As I see it, Virgin is a much happier airline than Qantas, JB has done a wonderful job delivering positive vibes for the product. It is clear to me the Q management have no idea how to motivate employees.
Basically this current lot of managers are out of their depth, have no feeling for the pride Qantas employees have in the company, and have no feel for the way the Company
used to be perceived by the wider aviation community, a recipe for loss of market share as airlines have always been a people business. This new breed of "clinical bean counting" managers are are slowly but surely choking the life out of the business promoting its traditional customers to look elsewhere..
This will only be reversed if the management comes to its senses by redirecting the B787 back into mainline. As I said previously on this thread, Jetstar has very little brand power with the punters in Asia compared to the Qantas brand.
AJ & BB keep telling us otherwise which is a downright blatant lie or wishful thinking at best.