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Old 24th Aug 2014, 09:37
  #56 (permalink)  
FYSTI
 
Join Date: Nov 2011
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Hard hat on. Preparing for incoming.
Why? I thought you made many good points worth considering.


Originally Posted by virginexcess
One can only assume that Joyce thought that Virgin would run out of cash before he did. On face valued that was probably a reasonable expectation if he thought that Borghetti would not be able to find additional cash. Then came the cash injection from Etihad that resulted in AJ going nuclear and forecasting the collapse of Qantas.
Excellent summary of the situation, this has been my thinking for quite some time

Originally Posted by virginexcess
but a lot has been from things outside the control of management, such as Virgins reinvention,
Virgins "reinvention" was actually within QF management's control - it was their idea. This was actually Qantas's strategy, to force Virgin upmarket, and with it their cost base would increase disproportionately. It was described as a "pincer" move, undercut them with J*, screw them through QF Dom, forcing Virgin to either lower cost base, or increase it significantly.

This has a big influence on your argument domesticly, as quite a bit of your logic turns on most things being beyond managements control, particularity competitor behaviour.

The International arguments I will leave to someone else.
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