Qantas sheds 2000 positions

[Russell D]

Nick, unfortunately the producers of oil can do whatever they please with the price of oil. It is, after all, their product.

Chris

Exactly my point. Speculation is hurting the oil price and those responsible for the practice are doing nobody any favours! The prices should be tied to real events and tangible happenings not some traders idea of what may or may not eventuate.

Well essentially, if you are an oil producer or even a speculator for that matter), and with so much power to raise prices without anyone really being able to stop you, why would you give a stuff about anyone else who really feels the pinch? I mean, as long as you would be making a profit you really wouldn't care about anyone else.

On another note, using textbook economics, it will be interesting to see which airlines can survive (obviously those who are the most efficient who can remain competitive in the market). QF should be able to hold up fairly well and outlast most of the other competitors I imagine (its most likely got the best economies of scale of all Australian domestic airlines considering its size), however, following the shock collapse of Ansett, I guess anything can happen.

Just makes me wonder how organisations such as the RFDS are coping with the rising price of fuel, as most of their funding comes from donations. Combine the rising price of fuel, less donations as a result of tighter household budgets, and the acute shortage of doctors throughout Australia, they must be feeling some pressure.

[Paul Waters]

Russell, RFDS is majority funded by the respective state and federal governments. While rising prices of fuel do effect their operating costs, it doesn't hurt them as much as it would most operators.

The price of oil was in free fall about 6 weeks ago as well, didn't take long for it to rise $15 in a couple of days.

Paul

[Rhys Xanthis]

I think if Qantas really start to feel the pinch, a very easy step could be made to decrease frequencies on some major routes. While obviously not a favourable option, I am sure that if it got really serious, they would look very hard at such an option.

[damien b]

I'm wating for prices to start to move back towards what we saw in the old Ansett/Qantas/Australian Airlines days. It would make flying expensive for many but at the end of the day people who need to fly will, those who only do now because its cheap will once again look elsewhere or fly less. Airlines can only cut back so much in staff before they either shed routes or increase prices, and not just the fuel levies.

I recall flights from Syd to Adelaide return, being up around $600 in the 90's, whilst now they are around the $290 mark. Even an increase to $400 would be fine by me and it would give all airlines a bit of breathing space. Low cost airlines and high fuel prices don't mix too well.