Really not sure I understand everything behind this but from the looks of it, Joyce is a real idiot. So let me see if I can get this straight...

Doesn't want to pay his pilots and other employees at the current rate so he shuts down the airline until they agree to lower pay - Even though the airline is profitable.

Please correct me if I am wrong. Seems like this guy is a few chicken nuggets short of a happy meal...

 

It boils down to scope.

 

But is it really profitable on the international flights? I realize Joyce has employed many dubious accounting tricks, but international competition has been heating up for years - there are no restrictions on international flights (like limited slots to/from Canada). Emirates, Singapore, ANA, Korean, BA, Virgin, Qatar and UAL all have several flights a day to SYD, MEL and other big cities - and their products have become progressively better and better (to the detriment of Qantas). Recent long-haul entrants like Delta, Air Canada and V-Australia don't help - they are eating away at its traditional long-haul market share (more customer choice). If I am a business traveler flying to/from Europe, I'd rather pay big money to enjoy this at Emirates:

Photos: Airbus A380-861 Aircraft Pictures | Airliners.net

To take the devil's advocate role, it's a tougher environment nowadays and all legacy airlines might need to recalibrate their costs to better compete. I don't agree with Joyce and his draconian measures - especially this New Zealand venture that looks/sounds like Qantas but isn't - that's a blatant lie to the flying public. That Youtube video did a great job of explaining the tricks. Still, with more competition, we need more realism on both sides of the table...

Regardless, Joyce needs to go after these recent stunts. How can he lead effectively after this craaap? And his ridiculous raise during this downsizing is OUTRAGEOUS - he, his board and his managment team need to lead by example or go... That's my $0.02.

 

Ah, okay. Well then it sounds like Qantas needs some restructuring in regards to their routes. If there is so much competition they need to either scale back prices or provide their customers with a higher end product. I.e. Emirates.

 

Someone was just a bit brazen on this and hopefully other carriers don't get the same idea during contract negotiations .



Ally

 

I ran into a Qantas 747 Captain yesterday in Frankfurt and he told me about the board approving a 71% increase in pay for the CEO ... no brainer why they aren't flying, good for them.

 

Anyone have anything more on this situation? I don't think there there are any QF pilots on here, but I'd really like to hear more details.