perfect storm, page-6

Surfrat2230,

Your post really does show you have a lack of depth to your knowledge.

Your Alleged Fact1: There is a $450m/year saving from all 777 fleet.

The Real Facts: Your claim assumes these aircraft are free. They are not. You have to pay for them and that capital comes at a real financial cost which has to be paid every year. These capital costs offset the fuel savings. The annual capital cost of purchasing an all new 777 fleet wipes out the bulk of the fuel saving.


Your Alleged Fact 2: Middle eastern airlines are paying top dollars for their skilled/expat workforce.

The Real Facts: Go to the compounds where the foreign workers from India, Pakistan and Bangladesh live. Ask them how much they are getting paid to work for Emirates. Ask them what they think of their living quarters. They are the hidden workforce with one bag of peanuts per day sized wages.

Your Alleged Fact 3: All current QCCA cabin crew are on a measly $33,000pa contact and are not exactly overpaid.

The Real Facts: You have conveniently omitted to mention that this salary is for a 27.5 hour week.

Combining your Alleged Fact 2 (Middle East airlines are paying top dollar) with Alleged Fact 3 (Qantas is paying peanuts):

The Real Facts 2 & 3:

The average employee cost for all Qantas employees in 2011 was $A115,046.15.The average employee costs for all Emirates employees in 2011 was $A37,506.95.

On average Qantas employees cost 3 times as much as an Emirates employees. If Qantas had the same average employee costs as Emirates it would have made an additional $2.5bn in pre-tax profit.

Its not that I believe Qantas employees should be paid the same as Emirates employees. However it does highlight the absolute stupidity of the recent industrial campaign undertaken led by Steve Purvinas. His focus should be on seeking win-win solutions and maximising productivity improvements to minimise the competitive risks to his members. Instead the campaign cost Qantas $200m and has cost many of his members their jobs.