fly!!!, page-12

re: fly!!! beware Just wish to make a small point here!

There are too many assumptions here that if oil prices move up it will badly hurt Qantas.

1. QAN has already imposed a fuel levy surcharge on its
passengers, despite being hedged and not currently
being affected by rises in fuel price. So that makes
it competitve in the short term.

2. QAN is in a very different position fundamentally,
than British Airways and the Italian airline, and in
fact most airlines.

In Australia, you don't have a choice to take the car
and drive to Europe or New Zealand or USA etc.
You have no choice but to fly. You could go by ship
but its too expensive and time consuming. Most
people can't take 2 months off to get somewhere.
Besides, ships and motor vehicles also use fuel also.
It will for example, still cost you more to drive to
Brisbane from Sydney and back, than it will to fly.
And no matter what the price of fuel will be, you
can be sure QAN will get a better deal than you
will at the bowser.

3. And thirdly, even if the price of oil doubles, people
still have to fly, so if it costs more, we (and that
means you) will just have to pay more. It is crazy to
suggest that just because its more expensive,
people will stop flying. They won't! Just like when
house prices increased to record levels people were
still buying as you need to live somewhere.