[Peakoil] Fwd: Qantas and oil prices and the flow-on

[Keith Thomas]

This is from Crikey.com.au today. Wonderful ripple effects!
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Keith Thomas
www.evfit.com
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Begin forwarded message:

> 24. Qantas crunch required, while the protectionism continues
>
> Michael Pascoe writes:
>
>  A stark reality was tucked away behind Qantas chairwoman Margaret 
> Jackson's Canberra lecture on Wednesday – the Roo has a lot more cost 
> cutting to achieve if it's going to be competitive.
>
>  Jackson said fuel costs are now 30% of Qantas' operating costs, up 
> from 13% two years. Jackson used that as an excuse to plea for 
> continuing the Roo's protection (to the detriment of the overall 
> tourism industry).
>
>  Another view would be that Qantas has a lot more to do to reduce 
> costs, with its management costs its least competitive component.
>
>  Fuel makes up 39% of Singapore Airlines' costs. With both airlines 
> operating profitably, it's arguable that the leaner SIA back office is 
> what makes all the difference. While Qantas has been playing “no 
> decision yet” on various further outsourcings and closures, the 
> reality is in the figures.
>
>  The unfortunate part is that there's a question mark over the current 
> Qantas management team's ability to negotiate significant productivity 
> improvements with the union movement because of skeletons still 
> rattling around from the collapse of Ansett. From the union side, 
> there's a lack of trust in what the Qantas top guns say – which leaves 
> Qantas with only its more confrontational style.
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