qantas versus virgin, page-78

The airline situation around the world is constantly changing. Margins are so thin that the survivors have to change too, otherwise they fall by the wayside.

Qantas has been resting on its laurels for too long, and has to change too. I don't think that has sunk in to a few people yet.

Just months ago Qantas was using unbelievably ruthless tactics on some regional routes to put its competitor out of business. Qantas was taking huge losses on some routes just to get rid of its competition, the Woolies and Corner shop syndrome. But it has backfired. They have got to be positive. An obsession with getting rid of competition won't work. Learn to compete.

The bottom line is that it has to make a profit. Guaranteeing loans, or raising more cash when it has heaps, is not going to fix the problems. The people who clamour for government 'help' have clearly never been in business themselves. Any kind of guarantee now would simply guarantee continuing losses, and would amount to a type of entrenched open-ended welfare.

To AJ, I would say, Forget the government, forget the dinosaur national icon rubbish, just knuckle down and do what has to be done to make money. The only alternative is oblivion.

Rex is the only Australian airline making consistent profits. Owned about 70% by Singaporeans, but an exclusively Australian airline. What's wrong with that? How many of its passengers would know or care? Rex has its roots in Hazelton, which started from a family farm at Cudal in NSW. Just like Qantas started in Longreach. Rex has moved on, Qantas has not.