bambbbam2
Active Member
- Joined
- Feb 13, 2005
- Posts
- 857
This is from another forum, so the views do not necessarily reflect mine!
"Imagine you're a big iconic airline with a name starting with 'Q'. You've built your reputation on being a champion of Australian values, with a safety record second to none. You achieved that reputation and safety record by spending lots of money on gold standard local engineering, triple redundant safety systems in your planes and maintenance schedules, the highest standards of aircrew training, and the like.
Trouble is, the international airline market is getting very competitive. Airlines which don't invest as much in safety, quality and 'Australian values' are able to offer air fares much cheaper than you. They are winning marketshare, and making bigger profits.
You decide that, to compete, you have to cut costs. So, you start trying to cut back on aircrew training and inflight systems, lowering them to be in keeping with those of other carriers. You try to outsource maintenance roles to cheaper countries.
Trouble is, everytime you try to lower standards, you hit turbulence. Unions. Government regulations. Worst of all, customer backlash about being 'unAustralian'.
What do you do...?
You start a new airline. Let's call it 'JetStar'. From the outset, you have lower training, safety and maintenance standards, so noone can ever complain about them being lowered. You have fewer aircrew on each flight, and you make those aircrew do jobs on the ground that used to be performed by ground engineeers. Then you start expanding your new airline to that it's taking over the routes of your old, expensive and established airline.
Within a few years, your new low-cost airline is making a motza. Sure, it's having safety issues. (In fact, some observers believe it's only a matter of time until it has a major accident ... just like your rivals airlines have.) And thanks to the cannibalisation of its routes, your old 'safe Australian iconic airline' has shrunk to become a low marketshare premium brand.
But hey, you're overall in front.
In the news today: Qantas' low-cost carrier Jetstar has announced it will expand flights into Europe and North America by 2010. It also unveiled four old, refurbished planes that will begin taking the airline's first international passengers later this month.
Uncanny, eh?"
"Imagine you're a big iconic airline with a name starting with 'Q'. You've built your reputation on being a champion of Australian values, with a safety record second to none. You achieved that reputation and safety record by spending lots of money on gold standard local engineering, triple redundant safety systems in your planes and maintenance schedules, the highest standards of aircrew training, and the like.
Trouble is, the international airline market is getting very competitive. Airlines which don't invest as much in safety, quality and 'Australian values' are able to offer air fares much cheaper than you. They are winning marketshare, and making bigger profits.
You decide that, to compete, you have to cut costs. So, you start trying to cut back on aircrew training and inflight systems, lowering them to be in keeping with those of other carriers. You try to outsource maintenance roles to cheaper countries.
Trouble is, everytime you try to lower standards, you hit turbulence. Unions. Government regulations. Worst of all, customer backlash about being 'unAustralian'.
What do you do...?
You start a new airline. Let's call it 'JetStar'. From the outset, you have lower training, safety and maintenance standards, so noone can ever complain about them being lowered. You have fewer aircrew on each flight, and you make those aircrew do jobs on the ground that used to be performed by ground engineeers. Then you start expanding your new airline to that it's taking over the routes of your old, expensive and established airline.
Within a few years, your new low-cost airline is making a motza. Sure, it's having safety issues. (In fact, some observers believe it's only a matter of time until it has a major accident ... just like your rivals airlines have.) And thanks to the cannibalisation of its routes, your old 'safe Australian iconic airline' has shrunk to become a low marketshare premium brand.
But hey, you're overall in front.
In the news today: Qantas' low-cost carrier Jetstar has announced it will expand flights into Europe and North America by 2010. It also unveiled four old, refurbished planes that will begin taking the airline's first international passengers later this month.
Uncanny, eh?"