Qantas and AJ offered yet more advice

[wandering_fred]

Whether the advice is useful or not is a matter of further discussion.
Qantas chief Alan Joyce playing a 'dangerous' game: Air Asia CEO

But then Air Asia seems to willing to add international destinations from secondary Australian cities.

Happy wandering

Fred

 

[Paddy55]

Whether the advice is useful or not is a matter of further discussion.
Qantas chief Alan Joyce playing a 'dangerous' game: Air Asia CEO

But then Air Asia seems to willing to add international destinations from secondary Australian cities.

Happy wandering

Fred

Like Perth? :evil:

 

[Must...Fly!]

Like Perth? :evil:

As an aside, I don't know if it's because of regulation or not but I have begun to wonder why they don't run Indonesian AirAsia out of PHE...

 

[samh004]

It's hard to respond to everything he raised, but I'll give it a go.

He mentioned it "looks" like Virgin is getting propped up by Etihad... but Virgin is getting money pumped into them to support their loss-making, it's a fact. Without that cash they'd be up to their eyeballs in debt. Without that cash they'd have to raise their fares, Qantas would do the same and the airline industry (at least the premium side) would be far healthier in Australia.

He mentions they might have to sell a share of their FF business, "Qantas will have to know that the good old days have gone I suppose and they have to cut their cloth accordingly and look at their whole business." - But why bother cutting the arm that works? If you're going to cut an arm off, it should be the one that's losing money.

“I don’t think foreign ownership … makes a big difference. And you have got to question if Jetstar makes sense, should it be a separate company,” said Mr Fernandes.

I wonder what he'd get out of that happening, perhaps he wants to buy a share and re-badge

I don't think he could run Qantas... or at least his idea might be to sell everything but one core business, which might work for a few years until the other parts of the business that also did well (not QFi) become competitors and fare wars lead to what we have now.

 

[wandering_fred]

As an aside, I don't know if it's because of regulation or not but I have begun to wonder why they don't run Indonesian AirAsia out of PHE...

Or Broome or Karratha perhaps

Any of the above would make some FIFO miners happier.
And might get some Singaporean tourists into Broome.

Happy wandering

Fred

 

[Barks]

He mentioned it "looks" like Virgin is getting propped up by Etihad... but Virgin is getting money pumped into them to support their loss-making, it's a fact. Without that cash they'd be up to their eyeballs in debt. Without that cash they'd have to raise their fares, Qantas would do the same and the airline industry (at least the premium side) would be far healthier in Australia.

Exactly! Not just EY but SQ and NZ as well. Thanks ACCC.

These 4 airlines will never see a cent from my wallet.

 

[drivatruk]

I don't think I would ever take advice from one of my competitors.

 

[zainman]

It's hard to respond to everything he raised, but I'll give it a go.

He mentioned it "looks" like Virgin is getting propped up by Etihad... but Virgin is getting money pumped into them to support their loss-making, it's a fact. Without that cash they'd be up to their eyeballs in debt. Without that cash they'd have to raise their fares, Qantas would do the same and the airline industry (at least the premium side) would be far healthier in Australia.

He mentions they might have to sell a share of their FF business, "Qantas will have to know that the good old days have gone I suppose and they have to cut their cloth accordingly and look at their whole business." - But why bother cutting the arm that works? If you're going to cut an arm off, it should be the one that's losing money.



I wonder what he'd get out of that happening, perhaps he wants to buy a share and re-badge

I don't think he could run Qantas... or at least his idea might be to sell everything but one core business, which might work for a few years until the other parts of the business that also did well (not QFi) become competitors and fare wars lead to what we have now.

Depends on what you mean by a 'healthy Airline industry'. To most of us (consumers) the more they battle it out the better for us, that to me is healthy.

 

[ReLoad]

I don't think I would ever take advice from one of my competitors.

I take plenty of advice from my competitors, I always look at what they do that's right and wrong

 

[straitman]

I take plenty of advice from my competitors, I always look at what they do that's right and wrong

Smart man :!:

 

[Happy Trails]

While they're not competitors, Joyce was happy enough to take advice from the Easyjet and Ryanair CEOs just a few weeks ago.

 

[Caversham04]

While they're not competitors, Joyce was happy enough to take advice from the Easyjet and Ryanair CEOs just a few weeks ago.

I'm sure I'm not the first to notice that the advice he is happy to take has come from two LCC's.....

 

[samh004]

Depends on what you mean by a 'healthy Airline industry'. To most of us (consumers) the more they battle it out the better for us, that to me is healthy.

Healthy in my statement meant not a race to the bottom. Currently the premium domestic market here is in a price war that seeing their profits stripped. For them to be healthy that price war would be less intense, we'd see less sales and they'd see more profits.

 

[burmans]

Healthy in my statement meant not a race to the bottom. Currently the premium domestic market here is in a price war that seeing their profits stripped. For them to be healthy that price war would be less intense, we'd see less sales and they'd see more profits.

Healthy competion needs players to stick around in small markets like aviation. In some industries it's not really a problem if one company if one players offers prices that are so unviable they lead to extinction because there are plenty others to take their place, not aviation. In aviation there are few enough that we cant really afford to lose any if we want that competition to remain healthy. Bloody is fine, dead is not.