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Old 10th Nov 2012, 19:48
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mohikan
 
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The real reason for the QF-EK tie up is simpler then the above, although most post have some good points.

What it comes down to (for Qantas managers) is KPI's and bonus's.

If Qantas doesnt have to fly a route because EK is doing it and QF is just purchasing seats on a service, then its highly likely that for a given route the specific CASK can be reduced.

The way that QF management bonus's are structured, this means that a significant percentage of these savings will end up in the pockets of those making the decision to pull QF off the route.

Therefore, for individual QF managers there is a powerful incentive to pull QF out of its remaining international flying ASAP.

In relation to the 4 LHR slots QF owns, a source tells me that as part of the deal these slots will be leased to EK for USD $1 per year.

Both current QF services to LHR will last less then twelve months after the tie up is completed.

Last edited by mohikan; 10th Nov 2012 at 19:49.
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