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Old 23rd Aug 2014, 22:42
  #51 (permalink)  
Trevor the lover
 
Join Date: Jan 2006
Location: On my V Strom
Posts: 348
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Good morning Mr Virginexcess


In my HSC in 1981 I scored a brilliant 23% for economics. So not a genius clearly. You said in an earlier post that with the Qantas international cost base, turning a profit "is just not possible."


But what has changed - its not many years ago that QF, with the same cost base was reporting half billion dollar profits. From the international flights I've been on they seem to be filling seats, particularly to the US. So it doesn't seem to be a competition issue - same cost base, filling seats, but no profits!!! Is it fares have not kept up with inflation, or is it too much loss of revenue and hence a reduction in scale? By that I mean, for instance, QF announced a reduction in off peak Tasman services as a way to save money. Well here's a tip QF, cut all Tasman services and you save 100%. It seems that all they do is cut to save money, but forget that to make money you need revenue.


Just curious to get opinions on what has changed in the last 10 years, besides management, that has sent the balance sheet down the toilet.
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