Competing on short haul flights as replacement step for Ansett would have seen VBA shown the back door. What keeps Qantas bouyant is the strong outbound international market and this is where Virgin has to compete to stay in business.
I agree with you about the higher cost base but that is unavoidable if one is to expand, and after all that is what businesses do. You dont sit buy and watch Qantas take cream elswhere and introduce its own low cost carrier to compete with you and do nothing.
As far as saying management did not have a handle on the POO and sinking USA economy. How many other airlines worldwide factored a $150+ US per barrel oil price or Sub-prime etc. Especially at the time that Virgin was negotiating its aircraft purchase. Qantas also has orders in waiting, and is happy for a delay in delivery.
It is akin to comparing Jetstars 787 Dreamliner delay on poor planning ! At the same time Qantas is retracting services on Asian routes and moving its hub arrangement from Singapore and Vietnam to Darwin. Sounds rather reactionary too.
My main point of the reason you have entered into this is why they are good managers strategically. Each has their own set of circumastances and is finding ways to stay ahead of the pack.
Managers have to act as strategic planners and have a handle on the companies strenghts and weaknesses to be able to adapt in a competitive environement. These strategies are aimed at shaping the evolution of the industry in which the firm allready holds an advantage.
There is cost focus and differentiation focus. Cost focus exploits the behaviours of the cost driven market whilst differentiation focus seeks out certain segments of the market which are underserviced.
Within the airline sector management must make the need to be aware of customer needs without pigeon holing itself into a niche or part of the market that could be easily taken over or become outdated due to change in trends.
VBA could never have remained and QAN would have become a monoploy had VBA stuck to the low yield short haul market. The move to compete internationally is applying pressure to its competitor and at the same time gleaning revenue.
All the best.
Bacchus.
PS, i like QAN too !!!
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