We have friends visiting us from abroad in December. As far back as six months ago, they had booked a flight for a certain date, and had planned their schedule around that date. Two weeks ago, the travel agent informs them that that flight has been unilaterally cancelled by Qantas, and that they are now booked on a flight three days later.
No explanation, no compensation, not even so much as an apology.
Just suck it up, customers.
Following a long litany of similar, and even worse, bad service experiences with Qantas in the past, for the past several years my family has adopted a policy of boycotting Qantas unless there is absolutely zero alternative.
This morning, while waiting for someone, I penned this brief note to my Federal member.
"Dear XXX,
I refer to our country’s national air carrier, QANTAS, and the government’s public position on preventing competition entering the market in the form of Qatar Airways.
For context, Qantas last month reported its financial results for the 2023 financial year.
The company’s financial accounts are replete with an embarrassment of riches including, but not confined to, the following:
Profit Before Taxation = $2.5bn
Operating Cash Flow = $5.1bn
Free Cash Flow = $2.5bn
Qantas shareholders received capital returns of a whopping $1.0bn.
Despite that generous level of shareholder capital returns, the company’s net debt position has still more than halved over the past two years, from $4.6bn at the end of financial 2021, to $2.0bn at the end of financial 2023.
While Qantas and its shareholders enjoy that sort of financial largess, an outworking of a de facto monopoly position enjoyed by Qantas, families already faced with cost of living pressures have to pay elevated air fares in the event they want, or need, to travel.
Accordingly, could you please refer me to any public pronouncements you have made on this egregious matter and advise of what steps you have taken to cause the government to cease what is effectively a subsidy to shareholders of a publicly-listed enterprise by Australian households, instead of actively promoting competition in the Australian aviation industry?
A candid and forthright response from your office, devoid of “politician-speak”, would be appreciated.
Thank you most cordially
XXXX
I have no aversion to others, who feel not enough is being done to encourage more competition in the Australian aviation sector, using the above correspondence, or adapting it as they wish, and petitioning their local politician with it. And even doing what I intend to do, namely forward a copy of it to the Chair of the Qantas board.
QAN shareholders might think this position is vexatious or frivolous, but it is in fact in their interests as owners of QAN that the company continues to operate in a competitive landscape, in order to remain efficient and preserve brand value, which is currently being destroyed given QAN's poor service levels.
Competition is healthy, because without it, complacency and market arrogance sets in (this is already evident in QAN's case), and the end result is business under-performance and devaluation.
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