QF EK Tie up bad for tourism

[markis10]

Yet another ex QF staffer pitching in with two cents:

The tie-up between Qantas and Emirates may be good for Qantas but it is unambiguously bad for tourism.
Qantas decided to team up with Emirates because it could not achieve its targeted returns on international routes in which it competes head-to-head with Emirates, including London Heathrow, Frankfurt and the Tasman.
This failure to reach targets can be put down to four key forces – excess supply causing low yields, elevated jet fuel prices resulting in higher long haul costs, weak global economy and asset prices hurting travel in premium cabins, and competitor carriers offering a superior product at a lower price.




Read more: Qantas tie-up is bad for tourism

 

[oz_mark]

Yet another ex QF staffer pitching in with two cents:

The author of that article has been in the news on and off for a year or so having voicing his opinions on various things Qantas.

 

[samh004]

This failure to reach targets can be put down to four key forces – excess supply causing low yields, elevated jet fuel prices resulting in higher long haul costs, weak global economy and asset prices hurting travel in premium cabins, and competitor carriers offering a superior product at a lower price.

That's all well and good, but how does he plan on fixing these issues otherwise, or is the idea just to slag them off?

 

[smit0847]

I have worked for the airline for years and would easily work for them again.

I doubt he'll get that chance given how much he rubbishes them in the press.

 

[nlagalle]

I'm wondering how flights will decrease. So far I have seen an increase in the proposed flight from MEL at least as we'll have a 747 going to SIN.


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[eastwest101]

That's all well and good, but how does he plan on fixing these issues otherwise, or is the idea just to slag them off?

The last time I checked Alan Joyce was the CEO of Qantas - not Tony Webber. I am not sure if it is correct or not - but I think Webber was trying to argue that the EK tie-up will allow capacity to be reduced (or stop growing) which will improve EK and QFi yields. I don't know that QF management can do much about high fuel prices except have as new and as fuel efficient fleet as possible, that is why some posters on here mercilessly flail QF for not having B777's. The weak global economy and asset prices affecting premium cabin loads affect all airlines except maybe LCC's. The superior product at a lower price problem either means QF should reduce costs or improve the product so that its worth the price being asked - otherwise they can expect to see their market share shrink and economies of scale being lost.

The australian tourism industry may recover once the over-valued AUD eventually comes back to earth - which it will have to do at some point.