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Why Qantas Missed Out with the Air Australia Collapse

Posted by Daniel Rose - February 18, 2012 - Blog

Plane landingAny­body in Aus­tralia has prob­a­bly heard all about the “Air Aus­tralia” carrier’s vol­un­tary liq­ui­da­tion. If you haven’t, you can find out all about the Air Aus­tralia col­lapse here. The really shock­ing bit was the oppor­tu­nity this present for Qan­tas, and how they missed it almost completely.

For those of you read­ing from areas other than Aus­tralia, Qan­tas is the quin­tes­sen­tial Aus­tralian national air­line. It’s not government-owned, but it has a rich his­tory and his­tor­i­cally has been the golden child of the Aus­tralian air­ways. In recent times, Qan­tas has been marred by union shutouts, threat­ened strike action, leav­ing more than a few cus­tomers stranded and less than impressed. Days ago it was announced that 500 jobs were being cut, because of a huge drop in profitability.

What’s this got to do with Air Aus­tralia? Oppor­tu­nity. For Qan­tas, the Air Aus­tralia col­lapse was an oppor­tu­nity to become the knight in shin­ing armour. With around 4000 Aus­tralians stranded over­seas, Qan­tas could have stepped in, sav­ing the day. The cost to pro­vide addi­tional ser­vices, bring­ing stranded pas­sen­gers home, pales in com­par­i­son to the good­will gen­er­ated. The “Fly­ing Kan­ga­roo”, look­ing after Aus­tralians when they need it most.

Granted, Qan­tas are pro­vid­ing some extra ser­vices. But there are sto­ries of stranded pas­sen­gers being required to pay. The Qan­tas CEO, Alan Joyce, was inter­viewed on morn­ing tele­vi­sion show Sun­rise, and asked about how Qan­tas could help. Rather than a direct, “All Air Aus­tralia cus­tomers will be flown on Qan­tas, with no extra charges.”, his answer swerved around as though he was giv­ing some­body direc­tions to the trans­fer desk.

The point of this isn’t to bag Qan­tas. They’re my favourite air­line. The point is to demon­strate the beau­ti­ful oppor­tu­nity they had to cement their posi­tion as Australia’s national car­rier, which has unfor­tu­nately added lit­tle value for them.

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air australia, alan joyce, collapse, qantas, Value

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