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November 1, 2011
Question Time in the House of Representatives yesterday was very Qantas-focused with the Coalition not being able to make much headway with its 'why didn't you pick up the phone to Joyce earlier' questions to Gillard. Gillard was able to brush them off with ease and the ALP appeared to find its mojo.
What was ignored in the blame game in the political/media hothouse was the way that the competitive pressures of the global market are impacting on Australian businesses and forcing Qantas to restructure. That means the Australian character of Qantas will be hollowed out as Qantas is turned into a low-cost Asian-based carrier.
The long-term strategy for Qantas under Joyce is to move the private airline offshore--that is, to run the Qantas of old down, and to replace it with low cost offshore-based airlines. It appears that Qantas will be reduced to a legacy business carrier that flies a few remaining profitable routes.
The low cost offshore-based airlines will take a joint venture form, technically operating as local airlines, to get around the provisions of the 1992 Qantas Sale Act that prevents Qantas from conducting international operations under another name and from moving its ''principal operating centre''.
The low cost subsidiaries Qantas plans to set up in Asia (initially Singapore, Vietnam, Japan) are designed to seek a bigger share of Asia's leisure travel market, get a toehold in the China market, and to grab a share of the premium well heeled Asian executives.
At this stage Qantas wants to establish a low-cost carrier in Japan in partnership with Japan Airlines and invest in a premium airline based in either Singapore or Malaysia, likely to be called RedQ or OneAsia. The latter will have a separate identity from Qantas and its low-cost Jetstar. The implication is that the principal operational centre for Qantas international services will not be in Australia.
In Australia Qantas, under Leigh Clifford the Qantas’ chairman, is pursuing a premeditated strategy of open warfare with its unions in order to drive down wages, reduce conditions and grow profits.
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Gee its snowballing isn't it?
The contempt that big business in Australia holds for the public and the elected government.
Numerous examples, not just Murdoch. Such as the anti minerals royalties increase campaign from the big mining companies, the anti carbon pricing campaign from the coal lobby, the anti-pokies campaign from Clubs Oz, the tobacco companies 'astro-turfing' and so on against plain packaging, lots of other examples, thinly disguised at best usually transparent and blatant and smothered, always, with self serving PR ... umm you know the word I want to use.
Has it always been so obvious, this manipulation and contempt of government and the public I mean, or has it, as it seems to me, reached a crescendo in the last few years?
Increased thanks to their success in ripping off the public during and since the GFC stage 1 perhaps?
It really has gone over the top.