In the scheme of things though LAME wages are not the issue. The point of this thread is that Qantas wants Government help "to level the playing field" but I do not think they are asking the right questions. And that comes back to "vision"... "65% market share" is not a vision! Throwing away millions of dollars in excess capacity to defend the "line in the sand" is not vision, it is just bad business.
Will a guarantee help Qantas?? Short term maybe, but it will only delay the inevitable, and open a Pandora's Box for government in regard to other industries.
What should Qantas be asking from government??? OK here are some suggestions:
1) Accelerated depreciation for new aircraft... putting in more new technology aircraft will reduce cost, improve product and thus improve yields. As I said in earlier post the 787 is a game changer that can be used to; a) defend and even grow existing markets; b) improve margins; c) open & expand new markets.
Accelerated depreciation helps level the playing field against the likes of EY, EK, QR that operate in a low to no tax regime.
Accelerated depreciation allows for more investment which will keep more jobs, and thus more people paying high levels of income tax... in the long term the Government is better off because we grow the industry and retain tax paying jobs.
2) Common border with NZ would save QF maybe a couple of hundred million dollars a year.
3) Offshore immigration pre-clearance in trusted countries such as Japan, Canada and USA.... reduces cost, frees up border resources (for new International 787 routes to more places like TPE, MNL, DEL, BOM, MAA, HAN, SFO, YVR, IAH, PVG, CTU, XIY, ICN,) and can stimulate tourism and business.
4) Increased measures to reign in infrastructure costs in Australia, particularly some of the ridiculous airport charges that are just out of control... not only benefits QF but whole industry... some Government intervention here is way overdue.
5) Industrial flexibility in like markets, so no airline is disadvantaged by industrial agreements in the same market. Why should VA ground staff be on a different agreement to QF at the same airport?
But first QF management needs to be in touch with the business environment they are now in... at least then they can ask the right questions.