red q ? asia one ? or failure ?, page-8

This article highlights one of QFs previous ventures into Asia, and how it can all go so wrong !
GLTA@QF


The failure of Jetstar Pacific has demonstrated the cost Qantas is paying for focussing too heavily on risky Asian ventures at the expense of Australian operations, the Australian and International Pilots Association said today.

Due to its unsustainability, Jetstar Pacific is set to merge with Vietnamese national flag carrier Vietnam Airlines, the Civil Aviation Administration of Vietnam has revealed.

The announcement comes despite previous claims from Qantas CEO Alan Joyce and Jetstar CEO Bruce Buchanan that the Asian ventures were successful parts of the Qantas Group.

 

AIPA Vice President Captain Richard Woodward said management now had a responsibility to explain how much the failed venture has cost Qantas.

“For too long, Qantas management has taken its eye off the ball in Australia in order to experiment with these risky venture in Asia,” he said.

“This year, the trend has gathered pace, with Mr Joyce announcing plans to set up a new ‘Red Q’ airline in Southeast Asia, although due to all the mixed messages around it’s tough to say where that plan is currently at.

“Australians are constantly being told by Qantas management that expansion in Asia, at the expense of Australian operations, is necessary because it’s so profitable. Today’s revelation proves just how flimsy that argument is.

“Mr Joyce and Mr Buchanan owe it to the public to come out and announce how much the failed experiment of Jetstar Pacific has cost Qantas. While they’re at it, they should probably explain how that money could have been used to improve and grow Australian operations.

“Qantas has enjoyed an enormous advantage in Australia due to its 90 year reputation for quality and safety. Instead of building on that, management in recent years has tried to shed the Qantas brand and push these high-risk, adventurist projects in Asia.

“We can only hope that this latest failure drives home the point that Asian ventures aren’t some sort of golden alternative to Australian operations.

“Qantas pilots are not anti-expansionist. We think there is plenty of scope to grow the business from Australia - we just need to stop frittering Qantas money away on these high-risk offshore ventures.”