Qantas used to thrive in an environment where it had the upper hand.
Its main competitor, Ansett had higher costs, an older fleet and was crippled by a lack of direction. With this type of competition it is no wonder that QF grew stronger, larger and more profitable domestically.
Internationally, QF claims it has always had to compete with up to 38 airlines. However, with the Emirates putting on the screws for Sydney landing rights, QF's political lobbying has finally come out of the closet. It would appear that QF have been very skillful in politically manipulating a commercially succesful outcome.
The current push by Virgin to force government departments into low cost is a good example of how QF have enjoyed hidden advantages. Whilst the cynical would say it is just another cocky push by snot nose Branson to get more bums on seats, whether they want to be there or not, a more circumspect veiw would see it as a sign to QF that the hidden protections are going to come down and the future is about competing on a level playing field.
Qantas are a great airline, and great airlines are an endangered species these days. Unfortunately for Dixon, most of the unions and staff refuse to believe Qantas is anything but invincable.
As a refugee of the former Blue team, I see some worrying parrallels. One can only hope that Dixon and Co can effect succesful change before it is too late.
Jetconnect & similar strategies are not solving the problem, they worsen it, as they not only threaten pay levels, but jobs themselves. QF need to take the bull by the horns and takle costs in all areas. Australian Airlines is a good example of this.
Sections of the media, no doubt fed by the unions are seeking to make light of the recent claims by Dixon regarding QF's fragility. This is a dangerous game to play, the unions want to remember the effect on membership that AN;s collapse had, traditional, airlines have a far greater than average level of membership.
Forcing QF to go down the Jetconnect path does nothing for membership either. All this of course is a little hypocritical when the same unions punishing QF are making deals for less at Virginblue simply to keep their feet in the door.
Yes it is highly unlikely QF will suffer the same fate as many other established airlines, however, if it's staff wish to work for a prosperous airline with a good futire, they will need to remove thier heads from the sand and have a look around.