Originally Posted by
ohallen
If you do not agree with that, why weren't they all sacked when they tried to get the govt to bail them out?
That was more about a level playing field and tax cuts to address it
A fair request that was largely ignored by the Abbott government
Does a Qantas pilot get the same pay as a pilot flying for a Chinese airline, or cabin crew etc ?
Does a Chinese or Singaporean airline pay as much tax as Qantas ?
Does Qantas pay as much for fuel as Emirates ?
Does Emirates need to make as large a profit as Qantas pro-rata ?
If an airline is located in a country that has lower wages or taxes than Qantas, then they have an unfair advantage which, left unaddressed, will see Qantas unable to compete or survive on flights between those 2 countries
Is this why Qantas has only a few flights per day to China verses Chinese airlines that have dozens
Is this why Qantas does not fly to India ?
Is this why ME3 and Asian airlines dominate the Roo Route ?
With this type of competition there are only 3 choices
1) Surrender routes to airlines with a low cost base (TICK)
2) Ask government for tax relief to get closer to a level playing field (TICK) but denied
3) Restructure and and reduce costs to compete (TICK)
Improve fleet utilization
Reign in growth on domestic routes ahead of growth
Reduce staff costs
Reduce staff levels
Outsource where possible for cost savings
Become lean and agile
The write down was not much more than a reality check as to where Qantas was heading if it continued to do nothing
Yes it was a big loss on paper, but the last 2 years of record profits have not only wiped out the loss, but saw 3 year profits (including the 1 year loss) exceeding any other 3 years profits in the history of Qantas
So Joyce must be doing something right