Qantas to start new airline in Asia?

[pauly7]

MH being a first world airline, could takeover Qantas - the reverse would be unlikely.

Isn't that how previous talks have come unstuck before with proposed mergers? MH wanted 51% of the new combined QF/MH entity and QF said nuh uh - we want 51%....

I think the QF Qantas Asia strategy sounds interesting. Use Qantas Aus to hub into Asia then a lower cost Qantas Asia to hub out to secondary ports Qantas Aus just can't service with their high Australian cost base....

AFR pointed out some incredible facts on cost bases (from memory please correct) they have SQ at around 50% less than QF and Emirates a whopping 220% less!!!!

How the hell do QF compete with that from Australia. Answer: They can't. (DJ can't either thats why they've wisely gone with code shares, QF already has codeshares to everywhere from A to Z - so it makes sense to start up franchise / OS airlines).

Look fwd to hearing more.....

 

[medhead]

MH being a first world airline, could takeover Qantas - the reverse would be unlikely.

MH cannot take over Qantas. It is prevented by the qantas sale act. As alluded to by the pilots union this move will bypass the ownership requirements in the qantas sale act. If this is want they are trying to do then they aren't trying to kill off qantas by moving the profitable bits offshore. They would just be trying to separate t operations from the company that must remain Australian owned. That then gives ultimate flexibility to deal with operations.

 

[Hvr]

Given the whole point of this exercise is to reduce costs can we assume that the executives working on this are being paid the rate of the cheap country that it is proposed that the flight staff would be paid?

After all it would set a great example.

 

[medhead]

I think you'll find that executives are a world wide commodity and hence must be paid at the current rate that is competitive with any other exec in the world.

 

[Jacques Vert]

AFR pointed out some incredible facts on cost bases (from memory please correct) they have SQ at around 50% less than QF and Emirates a whopping 220% less!!!!
.....

Please explain?

I would have thought 100% less = $zero. So what is 220% less?

JV

 

[casanovawa]

Yes, as the unions tend to say when workers jobs are being compared its to jobs in Indonesia, Bangladesh etc, when Executive salaries are being discussed its compared to the US and Europe...