Im no airline expert but there seems to be some fundamental strategy problems within the Q group. The segmentation of the business is contributing to a fall in margins and profits. Qantas International is losing economies of scale as routes are dropped and this is creating a vicious downward spiral. Conversely Jetstar International is growing albeit in a segment of the industry where the margins are a lot lower. Meanwhile Jetstar Domestic is canabalising Qantas Domestic whilst management is more worried about market share rather than revenue share.
If management were to focus on group profit rather than segment profits they could get their minds into a better area. Where practicable get rid of duplication, including management structure, and stop cross accounting costs and revenues. Keep the product differentiated and put the right product into the right market. Some markets will pay more for quality but the quality has to be delivered. Aim for a single group of employees and equipment with the flexibility to work across all segments.
Ok so this is somewhat pie in the sky but doesnt it give a better direction than the one now? Where do I go for my $5M?