Awesom Andy
Established Member
- Joined
- Nov 24, 2010
- Posts
- 3,552
Let's say, somehow, you took over Alan Joyce's job effective immediately, how would you run the airline?
Remember that:
1. The airline is currently cashflow negative, and has just (or is losing) its investment grade credit rating, resulting in higher interest rates payable and less favourable payment terms, so spending sprees on new aircrafts may not be affordable.
2. Your costs are higher than most competitors, in both the domestic and international markets.
3. You have an aging fleet of mid/long-haul aircrafts. Apart from the A380s, all A333s are at least 8 years old, the newest 747ER is already double digit, the oldest 744 would've finished uni if it was human, and you still have the odd 767 flying around.
4. Some of your international competitors are regarded by some of your current customers as higher quality, with better services, higher frequencies, and larger networks from their hubs.
5. You have poor loadings across parts of the network (e.g. to SIN, both Scoot (LCC) and SQ (legacy) airlines had higher % loadings in the most recent data).
Personally speaking, may be it's better to liquidate the airline, and put the cash in online accounts earning interest instead.
But failing that, what would you do? There is a bit of spare cash, but they won't last long. Costs are high, but revenue and margins are under pressure, and brand equity is falling by the minute...
Remember that:
1. The airline is currently cashflow negative, and has just (or is losing) its investment grade credit rating, resulting in higher interest rates payable and less favourable payment terms, so spending sprees on new aircrafts may not be affordable.
2. Your costs are higher than most competitors, in both the domestic and international markets.
3. You have an aging fleet of mid/long-haul aircrafts. Apart from the A380s, all A333s are at least 8 years old, the newest 747ER is already double digit, the oldest 744 would've finished uni if it was human, and you still have the odd 767 flying around.
4. Some of your international competitors are regarded by some of your current customers as higher quality, with better services, higher frequencies, and larger networks from their hubs.
5. You have poor loadings across parts of the network (e.g. to SIN, both Scoot (LCC) and SQ (legacy) airlines had higher % loadings in the most recent data).
Personally speaking, may be it's better to liquidate the airline, and put the cash in online accounts earning interest instead.
But failing that, what would you do? There is a bit of spare cash, but they won't last long. Costs are high, but revenue and margins are under pressure, and brand equity is falling by the minute...
