Wednesday, 19 October 2011

Why is Qantas prepared to screw its workers?

In this SMH opinion piece, Tony Webber, an ex-chief economist with Qantas Group, and now heading Webber Quantitative Consulting argues that is almost the last cost that Qantas has some control over:
Qantas international's higher costs are not because of less efficiency. More than one-third of its costs are fuel and aircraft depreciation. Qantas is generally more fuel efficient than other airlines because of its choice of aircraft and flight paths. And its aircraft procurement team is an excellent one, able to screw down the best deals on planes.

Most of the relative cost problems are associated with labour costs, finance costs, taxes, airport costs and aircraft depreciation.
If he is right - then the disputes with TWU, Pilots, and Engineers look like they could go on for some time.

Scource: Sydney Morning Herald, National Times

PS: It's worth reading some of the well informed comments printed below the article. If they are right, its bad aircraft buying in the past that is giving them their current headache

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