At Last, Common Sense About the Qantas Situation
Flying fox do you really think the problem is with other airlines flying to Oz, or is it with QF management, for cost cutting and not growing the QF business to be competitive?
QF management have cut costs/services/and fleet replacement all in the search of the short term performance bonus. If QF was to fly to somewhere other than LA and LHR, and if they were flying everywhere with empty aircraft I might agree with you. But I don't think thats the case.
As QF loads seem to be pretty full everywhere, could it be argued that the other airlines are flying the Pax that QF doesn't want? That being those that would like to go somewhere other than LA and LHR?
The Don
QF management have cut costs/services/and fleet replacement all in the search of the short term performance bonus. If QF was to fly to somewhere other than LA and LHR, and if they were flying everywhere with empty aircraft I might agree with you. But I don't think thats the case.
As QF loads seem to be pretty full everywhere, could it be argued that the other airlines are flying the Pax that QF doesn't want? That being those that would like to go somewhere other than LA and LHR?
The Don
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Full plane loads of people don't equal profit. Revenue - Costs = Profit
The revenue side of the equation is set by the market, ie what the customer is willing to pay. There is little room to differentiate in the mature aviation sector so companies are forced to compete on cost. If a businesses costs are higher and become unsustainably high they cease to exist.
I know many of you won't like this but Dick is right, QF need to compete on cost to survive. The current strategy is termed "stuck in the middle" whereby the company is trying to invoke both a differentiation and cost strategy simultaneously. The academic literature surrounding this suggests that firms are best to focus on one or the other not both. It is clear the direction the company must head to ensure its existence.
The revenue side of the equation is set by the market, ie what the customer is willing to pay. There is little room to differentiate in the mature aviation sector so companies are forced to compete on cost. If a businesses costs are higher and become unsustainably high they cease to exist.
I know many of you won't like this but Dick is right, QF need to compete on cost to survive. The current strategy is termed "stuck in the middle" whereby the company is trying to invoke both a differentiation and cost strategy simultaneously. The academic literature surrounding this suggests that firms are best to focus on one or the other not both. It is clear the direction the company must head to ensure its existence.
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How about providing a service first?
As a resident of a southern capital, I refuse to fly through the interchange known as Sydney in order to get out of the country. I dare say 60% of the rest of Australia would agree.
So stop complaining about the competition taking passengers. The public fly EK etc because they provide a service to where we want to go.
I recently has to go to Athens, why the hell would I go through FRA or LHR with QF?
You have to compete to get passengers, and QF offshoring, without a severe shake up of services would still not cut the mustard.
It all boils down to bad planning from QF, on routes/aircraft selection and basing.
Provide me with what I want, and I will buy.
So stop complaining about the competition taking passengers. The public fly EK etc because they provide a service to where we want to go.
I recently has to go to Athens, why the hell would I go through FRA or LHR with QF?
You have to compete to get passengers, and QF offshoring, without a severe shake up of services would still not cut the mustard.
It all boils down to bad planning from QF, on routes/aircraft selection and basing.
Provide me with what I want, and I will buy.
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Emirates, Ethiad and Qatar all enjoy competitive advantage that Qantas could never hope to even match!
Unfortunately, far too much of Qantas' current woes is as much the fault of really bad management decisions as of unfair competition. That's not saying that the government hasn't allowed the Middle Eastern airlines far too much access to the Australian market.
Sprucegoose
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Why don't we just put everything in one big QF/Joyce thread, instead of starting new ones? That way I don't have to follow a multitude of threads, the same conversation is going on in different threads!
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With Dicko & Singo sniffing about at QF door, it is now obvious why A Jones has been attacking the Qantas workers every morning for the last 6 months on 2GB, unjustly, as in the environment issues.
Cash for comment becomes Breach of standards?
From Wikipedia
http://en.wikipedia.org/wiki/Alan_Jones_(radio_broadcaster)
Cash for comment becomes Breach of standards?
From Wikipedia
http://en.wikipedia.org/wiki/Alan_Jones_(radio_broadcaster)
Breach of Radio Standards, On 25 November 2011 the Australian Communications and Media Authority found that (Alan) Jones had breached the commercial radio code of practice in his reporting of environmental issues. His reporting was found to lack accuracy and failing to allow other viewpoints to be heard. A decision on the penalty for this breach was reserved
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Senate committee transcript, 04/11/2011, p.12
Senator GALLACHER: A proposition has been put to me concerning the 71 per cent decrease in the share
value—approximately 71 per cent since 2007—the absence of a dividend for two years and the remarkable vote
of 96 per cent in respect to your remuneration, in the light of the deterioration in the market value of the company
and there being no dividend. Have you had any discussions with anyone—shareholders large or small—about the
potential break-up of the company, selling off the profitable bits and taking it out of the market in a private equity
way?
Mr Joyce: No I have not, absolutely....
value—approximately 71 per cent since 2007—the absence of a dividend for two years and the remarkable vote
of 96 per cent in respect to your remuneration, in the light of the deterioration in the market value of the company
and there being no dividend. Have you had any discussions with anyone—shareholders large or small—about the
potential break-up of the company, selling off the profitable bits and taking it out of the market in a private equity
way?
Mr Joyce: No I have not, absolutely....
Last edited by tmadam; 26th Nov 2011 at 00:45. Reason: Added link
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The government does it for the car industry. We are paying way too much for cars in this country compared to other countries like the UK/USA etc etc [taxes being accounted for] to keep a few jobs at Ford/Holden and Toyota who's profits go straight back to Detroit or Tokyo....WHY?
Around 1997 I bought a VS Commodore ute $29,000 approximately.
Standard features: electric windows
In 2011 I bought a current model ute $33,990.
Standard features: ABS, Electronic stability control, curtain airbags, sat nav (yeah baby!) Fog lamps (which I don't friggin' turn on unless there's fog) tray liner etc.
Allowing for inflation alone the price of the ute without all the technological advancement should be around, say 45-48 gorillas? Including all the standard features 53-55 gorillas?
And you reckon you can get a similar vehicle cheaper in the States? Bullsh!t
And you reckon the US has no tariff protection in the car industry either direct or indirect? Bullsh!t
And you reckon the car industry is not subsidised or protected in the US? Bullsh!t
