Like other monopolies in Australia, the government would come in...

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getluv

55 Posts.

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02/04/20

23:45

Post #: 43852066
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Originally posted by TheChaser: ↑

Interesting to read the various points of view here.

Virgin's mess is totally the result of John Borghetti's doings. Never did it make a profit while he was hellbent on trying to kick AJ in the nuts. JB was a spoilt little narcissist that threw his toys out of the pram when he didn't get the QF CEO position. Do we remember when Godfrey was CEO? Just a B737 domestic fleet and a B777 International operation. Simples. profit ever year.
JB never made a profit.

So, back in the early days of VBue, the citizens of Mt Isa wanted VB to fly there to give QF some opposition to reduce fare prices. Fair enough, Virgin Blue flew there and prices dropped.
But the residents of Mt Isa had QF Frequent Flyers Cards and the local FlightCentre offices were paid a commission to throw the traffic to QF, and so VB pulled out. The citizens of Mt Isa cried blue murder when QF jacked up the prices.
And so, the average Jo Public is stupid to think any other outcome was possible. The same happened when VA pulled out of Alice Springs to Adelaide.
AND THE SAME WILL HAPPEN ALL OVER AUSTRALIA IF ONLY ONE DOMESTIC AIRLINE (QF) REMAINS.

And with only one domestic operator, prices will be increased, resulting in families not going on their Gold Coast or FNQ holiday, and all the tourism sector will die.

It's not about Virgin, it's about the 10 thousand direct employees, but the hundreds of thousands of following businesses.

The new CEO, Paul Scurrah has been handed a shit sandwich by Borghetti. PS is seemingly a very credible businessman.

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Like other monopolies in Australia, the government would come in and regulate prices if QF started charging $3k to fly BNE- CNS on JQ.

There'll be an incentive for QF to play nice and keep incrementally expanding.

VAH Price at posting: 8.6¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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