justinbrett
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I can see the government to require that after X years VA will have Australian based pilot and crew operate “VA controlled” aircraft will be a condition and should be acceptable to Bain/VA. Ultimately I think this wet lease to get started then after X years transition to VA controlled operation within a JV setting is the best bet to have a viable 2nd international airline flying out of Australia.
In the long term that’s good for consumers as those being VA controlled aircraft can incentivize VA to expand into other international markets. It’s also good for the sector meaning more opportunities for pilots, crews and engineering positions. In the short term that does mean QR is probably profiting more from the wet lease arrangement compared to a typical JV where VA does its own flying but I think putting a time on it will give the business an opportunity to give this a go.
Apparently JH has refused to commit to a dry lease as that has been a demand from QF, saying it’s not possible within the timeline of the agreement (5 years).
A JV where QR does the scheduling, piloting, crewing, maintenance; what exactly is VA doing? This is where they might come unstuck.
The VAi structure using Australian based aircraft and Australian based crews is one thing, but this is a whole other animal. They may as well just award QR double the capacity and save everybody from this charade.