harvyk
Senior Member
- Joined
- Apr 15, 2009
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- Qantas
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Not going to try and be an apologist for AJ, but leading the troops through difficult change is not easy.
If even half of the murmur on this can be believed then QF's cost base, re: wages (and probably taxes) is just too high. We can lament this until the cows come home, but it simply can't be ignored at the business level. If QF was simply gouging the hell out of everyone you'd see this in profit statements and dividends to shareholders, theres almost certainly nothing 'shonky' going on whereby ticket pricing is high, wages and support costs are low and QF management and ownership is simply laughing their cough off on the way to the bank.
What we appear to be doing is classic australian whinging. We complain long and loud about the uncompetitive pricing structure, particularly domestic, but plenty of complaining about international as well, yet, at the same time, by and large, there is a lot of support for the high wage/cost base of the group too. I live and work in Australia, I do understand the ambivalence of this situation. Everyone wants to be paid a fair working wage, at the same time we all want cheaper goods and services. Unfortunately, we live in a country who's standard of living is really quite high. We can argue if its getting better or worse, but right now, in comparison to a lot of other places, and certainly in comparison to many of our neighbors, its high.
The only way through the mess would be to nationalise the airline in my opinion (and I'm not generally in favour of this type of move). Essentially run at a loss, propped up by taxpayers. In this way you can provide for employee certainty and wages and still keep ticketing more or less competitive. The alternative, to ask Aussies to pay significantly more for their tickets in order to support an 'Australian' airline and Australian jobs whilst sounding nice is simply a receipe for distaster as we won't, on the whole, accept this idea.
We all know that QF have issues with operating costs and issues with the fact that aviation is a very competitive market, we're not denying that. What we are saying is we think AJ is handling things very wrong. He is taking on the problem with a LCC mindset (eg remove privledges, cut costs etc), and that is a completely wrong mindset to take given the majority of his customers choose QF despite the fact that they are more expensive.
During the course of each day I read a few business blogs, one of the common themes that resonates around all of them is never try and sell on price. (It's also something I never do) and there is a damn fine reason as to why, there is always someone else who can do it cheaper. Considering that QF competitors includes asian airlines (where cost of living is small compared to here) and middle eastern airlines (where tax systems are very favourable towards them) I'd say that there is always someone who can do things cheaper.
They need a CEO who can put the value back into QF. So when people ask "why would I pay double the price to fly with you guys" he can rattle off some real value reasons without resorting to the usual rhetoric of "Because we're Australian" because that is not a good justified reason as to why one should part with big $.