Qantas Needs Dose Of Competitive Reality
Costs do not prohibit Qantas from competing with Arab carriers in the Persian Gulf, so why does it fail to serve the region and then complain about competitors in Australia?
Alan Joyce is the only guy who can explain the absence of Qantas in the Persian Gulf, however, for Qantas to complain about Gulf carriers on its turf is a non-starter.
Whether Air Arabia breaks its costs structure to acquire long haul airplanes to serve Australia next year is unclear, however, Emirates, Etihad Airways and Qatar Airways cannot be held liable for Qantas’ failures.
Codesharing with Etihad Airways to Abu Dhabi and Bahrain simply isn’t good enough. The amount of traffic now bypassing Bangkok and Singapore for travel to the southern hemisphere through the Middle East is evidenced by British Airways reducing services to Sydney and yield erosion suffered by Singapore Airlines on its A380 services.
GCC carriers are taking advantage of air service accords and the recent deal between Australia and Turkey begs the question why Qantas is yet again failing to make the most of the deal refusing to consider direct flights to Istanbul.
Will Qantas start crowing about Turkish Airlines too in a years time?
Qantas can complain all day long about Arab airlines not having to worry about their bottom lines – because they do. Emirates alone is by far the strongest GCC airline that has turned a profit in all years but one since it started up in 1985 – it has gotten governmental support, but not to the level of accusations asserted by Qantas.
In setting up Jetstar, Qantas has lost traffic, business and revenue to its low cost off-shoot and is now bizarrely remodelling its business to cut first class and chase low volume customers – just like Jetstar.
Qantas has no one but itself to blame for the dominance of GCC carriers on its doorstep.
The simple fact is you cannot whine about competitors in your backyard if you fail to compete with them in theirs.
Gerson Lehrman Group (GLG) is the global marketplace for expertise. Since 1998, its technology-enabled platform for collaboration and consultation has helped the world’s leading institutions find, engage, and manage experts across a broad range of industries and disciplines.
Ian Jarrett
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