Originally Posted by fedsec
Romulus I know you are very focused on cost cutting but I think you are completely dismissing the Merc/Hyundai argument. Please don't.
Feel free to actually argue why not, it's a bit difficult to debate a faith based argument. I've given a fairly clear reason why Merc/Hyundai is not appropriate, if you want to go with the God, i.e. just believe, argument then we're not going to get anywhere.
And cost cutting is just one tool, and usually the last I choose. But what we are talking about is efficiency, not cost cutting. For instance, if you could add 45 aircraft without adding extra staff (or at least any significant numbers) then you're delivering enhanced efficiency. You build a capacity growth plan and all those overheads are dispersed over larger numbers.
But hey, feel free to keep making those assumptions.
Originally Posted by fedsec
The 51/49 market share need not return exactly to the $600 Mel to Syd days but adding just $10 a ticket will not drive any substantial number of customers away. The Qantas Group carried $50Mill pax last year. $10 a ticket would add $500Mill to their bottom line. We need sustainable airfares and it will only take a small increase to get there.
And this is based on... faith again I presume?
Just put prices up.
Yep, that's how easy it is...