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  #31  
Old 8th June 2011, 07:45 AM
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Mike W Mike W is offline
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Andrew think you hit the nail on the head about the other airlines having a geographic advantage over airlines like Qantas. Have been saying the same myself for a long time when people ask why Qantas doesn't fly to places like Dubai or when people complain that Emirates, Singapore etc serve Australia with higher frequencies than Qantas does. The reason of course is they are flying people to their hubs and then distributing out, something that Qantas could never hope to do.
How do you explain Air NZ's recent change of fortunes with the same challenges and a home country of only 4 million people?
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  #32  
Old 8th June 2011, 07:54 AM
Luke A Luke A is offline
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How do you explain Air NZ's recent change of fortunes with the same challenges and a home country of only 4 million people?
A government get out of jail free card. New Zealand government 76.07% ownership.
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  #33  
Old 8th June 2011, 08:02 AM
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^ Nice. Still, they're now doing well with great leadership from Fyfe.

Do we have to wait until QF gets to that point and Julia can bail them out like Helen did over the Tasman? < $2 a share and falling, might be soon...
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  #34  
Old 8th June 2011, 09:06 AM
Nigel C Nigel C is offline
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I might be about to start a war here...

But why the hell should the federal government bail out an airline business if it goes under due to poor internal management??? There were calls for that rubbish when Ansett went under, and those calls were rightly rejected.
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  #35  
Old 8th June 2011, 09:10 AM
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^ Hi Nigel, I certainly don't want to be even partly responsible for a war. I was only joking about a QF government bailout. I don't think for one minute they would anyway.
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  #36  
Old 8th June 2011, 09:45 AM
Ash W Ash W is offline
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^ Nice. Still, they're now doing well with great leadership from Fyfe.
Luke is right, their bailout and restructure saved them. They also operate in more of a niche market that is even further away than Australia so have less competition compared to Australia. So much easier to survive.
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  #37  
Old 8th June 2011, 09:59 AM
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^ Hang on, more isolated, less customers, they're depending on revenue from a very competitive, congested trans-Tasman market, an Australian LCC (JQ) invading their domestic market... Sorry Mate, I'm not buying it.

Qantas need to pull their socks up.
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  #38  
Old 8th June 2011, 10:07 AM
Ash W Ash W is offline
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Which part are you not buying Mike? On long haul, Air NZ is under no where near the same pressure from competitors as Qantas is, due in no small part to NZ being further away and having a smaller population base. Australia on the other hand is closer to the action and a single hop away from some of the most aggressive hub carriers in the world.

You are most correct about Qantas though they do need to pull their socks up. But this is the root of their problems, their staff won't let them make the changes that they need to do to become more competative and make the money to invest in innovation. (Wasn't your United in the same boat recently too?) Classic catch 22. If I recall Air NZ was in the same boat until they were bailed out by the NZ government and were able to restructure into a unit that is better able to compete. Certainly hope Qantas doesn't go that way, and if they do I agree with Nigel that they shouldn't be bailed out. Maybe good reason why the unions should be facing reality and working to come up with a plan with Qantas management that is workable and will bring the company into the future.

Though having said that on Tasman Qantas is doing ok because they have been able to reduce their costs by using the cheaper Jetconnect.
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  #39  
Old 8th June 2011, 12:22 PM
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Sorry Ash, I should say I'm not buying that QF's problems of competition and remoteness is unique to them. NZ has a lot of the same issues and some unique ones of their own.

We agree on the point QF have to improve, however they do it. I'm definitely not a fan of Unions taking down companies just to prove their own points and have their members left high and dry. I really hope QF can overcome this and I'm wondering if little Al's strategy is leading towards putting pressure on the Unions in some way. Either that of I'll have to agree with the other posters in waving goodbye to him on his way back to Dublin.

BTW, where did you get
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(Wasn't your United in the same boat recently too?)
my United from? I'm a 747 fan but...?
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