canton route vs kangaroo route, page-13

"The CEO of Qantas doesnt know how to run a premium airline, he only knows the LCC model."

Hi dbl21,

A truer word has not been spoken about AJ. Unfortunately, shareholders and analyst have been slow to pick up on this because he talks a good game. Where are his results? The sad part is that it may be too late by the time the shareholders wake up.

Do shareholders remember Ansett? Well the current management were at the helm in Ansett before it was sold off to Air New Zealand as a basket case. It dragged Air New Zealand under too, had to be bailed out by the NZ government.

But keep cheering the AJ name, if it makes you feel better.

Dbl21, the other problem I see with Cathay, is you don't want to upset them unless you have a plan in place. They would be hard to compete against, but if you are going to compete, you might as well do it in one of the biggest aviation markets in the world.

If you join with Cathay, it brings in great synergies where you have both ends of the market selling seats. You see, Cathay operates only into Beijing and their subsidary Dragon Air operates throughout China from Hong Kong. If the combined entity operates from Australia to destinations such as Guangzhou, Beijing, Shanghai, Chengdu , then they have a triangle(with Shanghai and Hong Kong) set up and a bigger customer base the loads and yields will be profitable. It then gives the combined entity a big enough customer base to make the European destinations work. It also opens up South America and Africa to the Chinese customers via Australia.

Just something to think about, rather than a closed Malaysian solution. IMO even Seoul would be a better choice than Malaysia.