#11
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have you ever travelled overseas, woh it seems not!!!!!!
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used to fly globally on business, now retired |
#12
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I am ok with Qantas finding cheaper labour here in Australia. If other Australian companies can do it cheaper than what is being provided now then thats good because other Australian workers are gaining those jobs.
But pushing the work overseas is a different story as that means Australian workers miss out, Australian companies therefore miss out. I hope you can understand where I am coming from. There has to be a point where patriotism wins and a balance can be found between lower operating costs and at the same time protecting and creating Australian jobs. And I do believe that Qantas in the past has charged more then necessary on certain routes because of little or no competition. I have a feeling that prices will never go back to the heights that the airlines have enjoyed for so long. I think that after this downturn the aviation landscape will be completely different forever. Last edited by NickN; 17th April 2009 at 11:09 AM. |
#13
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Yes the industry will change, I'm not necessarily sure for the better. The low cost model is fine in a niche way for the lower end of the market, but if they become your only choice for travel, watch the mayhem start. Great for the airline, very bad for the consumer. The problem is that you can find cheaper labour in Australia... however that means your average Aussie is now earning less, and can't afford things, so we have to then find even cheaper labour to make goods affordable. Its a never ending cycle really, unfortunately with some fat cats at the top taking the cream. Qantas has charged more than the minimum it could on some fares, sure. The reason? So that when times get tough (like now), they have enough in reserve to be able to continue operations. Pre-Jetstar, they also needed to subsidise some of the other not-so-profitable routes they fly. Sure, you paid a little more if you wanted to fly to the US, but it meant that you had the chance to fly to Mumbai, Beijing, or other tight routes for a 'reasonable' fare. Were it not for this, airlines would be a fraction of the size they are, servicing very few profitable destinations. You really have to remember that Qantas (and now the Qantas group), have certain obligations to the Australian public, and whilst some may claim they are decreasing, at least there are still flights to most cities. Airlines like Tiger are far far more able to give you the cheapest fare by only operating on highly profitable routes and ignoring the marginal ones... the Qantas group has less ability to do that. |
#14
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Do you understand how a free market works? There is no such thing as "charging more than necessary". If people are willing to pay, you charge as much as you possibly can. Qantas is in the business of maximising profit, not providing a charity service. Ultimately the only way that Qantas was able to charge high prices was because people were willing to pay those prices.
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#15
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#16
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Owen you are correct, however I am sure some Australian families at this time in the financial crisis would prefer to earn less, than not be working at all. I know that may sound bad but that is the reality. If I was forced today to either work for less or have no job and not be able to provide for my family and pay my bills I know I'd choose to work for less.
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I do understand Qantas is not a charity service and free markets etc etc. But I also think that businesses in general have an obligation to their customers to provide a fair service at a fair price. Not providing a fair service at an inflated price because they are able to take advantage of their customers. This is a debate that could rage eternally, and I respect all your points of view as they all have merit. |
#17
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Will have to wait and see.... |
#18
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Nick,
I totally agree with you that it is sad that we will try and save a few pennies ahead of supporting Australian businesses, but thats the way it is going at the moment . I guess I would argue that the company was charging a fair price for the route, given its positioning for new aircraft and supporting the other routes that it operates, but I guess we'll have to agree to disagree on that one |
#19
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A positive outcome is that the consumer seems to be the clear winner in this instance which is a good thing.
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