browski
Established Member
- Joined
- Sep 8, 2004
- Posts
- 1,498
Although a lot of the commentary is on the lower off-shore wages, QF is also having a domestic battle with DJ. As I understand it, DJ's salary costs are significantly lower that QFs (like for like).
While this difference was fine while JQ and DJ were battling it out, presumably with similar wage rates, DJ is now rapidly moving upmarket, and will soon be able to compete on price with a similar product to QF.
QF simply cannot afford to allow their costs to increase if they are to maintain market share against DJ.
I'm not so sure that DJ is quite the threat to QF profitability. It is often the case that the only thing better than a monopoly is a duopoly.
OK, look at Coles and Woolies; but perhaps don't look at Qantas and Ansett.