One of the many, very sad examples of current management strategies is how Qantas is only trying to increase profit by reducing cost.
There appears no willingness or strategy in place at all to increase QFis revenues; there is only a plan to decrease cost. Could anyone recommend a revenue generation strategy that might save QFi from becoming a cautionary tale.
Is it possible that Qantas could actually provide a better service and then charge more for it?
Are they flying the correct routes? Should they fly more routes? Should they just improve morale and maybe try be nicer people (and nicer to their people)?
Should they re-launch their brand?
Anything, anyone?
Although there is significant chatter about -why- QFi is losing money and what could be done, if we're to believe QF management its currently bleeding $4M a week (I think this was the number). A horrible horrible result if true. I can well imagine a form a free-fall panic in the boardroom of the QFi arm of QF.
Its not an unreasonable strategy (in my view) in the first instance to try really hard to stop the bleeding by stabilizing the suffering department. Cut and hack away and find a revenue neutral base from which to regroup. Remember, right now, they don't even know if this branch of the company can be saved, so you won't get a lot of traction with the decision makers and bean counters on spending money to make money at this point. Stop the losses, reduce all aspects of operations that don't make money but, at the same time, try as hard as you can to not cut away too much good flesh with the gangrene.
Once stabilized, if thats even possible at this point, then your question really comes into its own. Now that we're at least neutral, and hopefully cashflow positive, how do we grow the business?
The first question that must be asked is if QF management, and ultimately shareholders, feel there is really much of a profit prospective in international operations with the current world situation. Its no good looking backwards at how things used to be, company strategy makers always need to come ot grips with the market as it is today and try to project what may happen in the future. It may well be, that with so many prominent yet struggling airlines alreayd in this space, that codesharing arrangments would be the more profitable move.
As a passenger I know codesharing very often drives me up the wall, but reinventing and reinvigurating an international airline without significant seed money and patience (from shareholders) just might not be viable at the moment.
Elsewhere on AFF someone suggested that QF proper, not JQ or other affiliated brands, may reduce operations to become not much more than a feeder to Asia where PAX will pick up onwards flights to the world with partners, affiliates or others.
[EDIT: Oh, and a comment on charging more.
I don't believe personally that price is the only factor. I have no problem paying what it costs to get a certain level of service. However, I am brand agnostic. This means I will hunt value where value is to be found and pay accordingly (value is not equal to cheap by the way)
Simply: I won't pay QF pricing to get JQ service. Happy to pay CX pricing to get CX service though.]
