Getting back to the first pages of this thread and the "where to now" question by Grip Pipe. I thought I would post this before I re-allocate my prune time to watching Being Lara Bingle.
I think GEOGRAPHY has been a big factor in QF's international decline. London and New York are a long way from Kansas Toto. Europe simply won't work because other carriers have a geographic advantage with crew bases etc. Flights to Singapore, Bangkok and Hong Kong return have just as much chance as making a profit as Thai, Singapore, and Cathay competing the other way all things being equal - Guess that comes down to Cost Base.
Just looked at SCOOTs webpage today and they have the CEO saying they have a 40% percent lower cost base than Legacy airlines. With all the Aviation degree's and MBA's in Aust, can someone actually get hold of some DATA on different carriers cost base? i.e. QF $1.35 per something, JQ $1.20, CX $1.25 Is there any graphs or tables in the academic or real world? Do we need more transparency from management with the these facts?
I think QF pulling out of Rome, Paris and London (Bangkok/Hong Kong) is a smart play until These destinations are possible in one "Hop". Frankfurt is a good performer, but geographically, the airline is competing through foreign soil which will surely fail in due course.
25% percent of QF's profit used to come from the POND. VA must be really hurting QF here - Can someone shed some light on this? Having the maintenance in one place would have obvious synergies.
The sound barrier and range is the REAL enemy of QF at the moment. The sonic cruiser is not dead with some Patents filed as recent as April this year: see sketches on my link under this thread.
The "Canton" Route - daily services to London via China announced for later this year in the papers this week mean "other's" are trying new idea's. Maybe the Seychelles, Male, or Columbo, Nairobi could work - maybe not. Trash at your leisure.
The good news is the economy is most likely going to be in such a bad state for the next 10 years, I think QF still has plenty of time and cash in the piggy bank to see this period through.
Sometimes "retreating" is the best option to "aggress" later. Sun Tzu wrote some good stuff on this in THE ART OF WAR. It has been mandatory reading for most business managers worth their salt for many years.
I'll drop back in again in a few years time. Hopefully its a much happier place then
