Here’s a piece I wrote for the Guardian that came out on Friday with the headline Albanese government’s close embrace of Qantas may no longer fly with the times Events have already moved on, with the snap resignation of Qantas CEO Alan Joyce, but the anomalous status of a "national flag carrier" with no interest in the welfare of the nation remains unresolved.
“There is no company in Australia that immediately says ‘Australia’ like this brand of Qantas.” Albanese was, inadvertently perhaps, 100% correct.
A mismanaged, shambolic, corrupted entity run for the benefit of a political managerial class and shareholders rather than customers and staff, relying on almost comical cultural memes for any trace of respectability that were long since gutted and outdated by rampant neoliberalism.
Qantas can't have it both ways. And in an increasingly 'nationalised' airline world, perhaps it should be renationalised. Qantas has demonstrated it cannot compete with the likes of New Zealand, Singapore and Emirates, all of which are supported financially by their respective governments, without breaking the law. So why not level the playing field? It would be much cheaper for the Australian taxpayer.
Back in the day, Paul Keating would have said that the ALP Left didn't know its arse from its elbow. Today, he might say that the ALP Left doesn't know its arse from its Albo.
Keating gave us negative gearing for cars - hence Westconnex/Worstconnex- and negative gearing for housing - hence housing crisis aided by mass tourism & platform
That's not quite true. Those things were always in the system, Keating didn't fix them. The reforms from the tax summit reduced some of the worst rorts, but that was only because Keating's preferred option (GST) didn't get up
The failure of competition is purely due to government. Allowing Qatar extra flights would have improved this and reduced the incentives for Qantas to treat customers badly.
I think the lack of competition permits irresponsible behaviour and the exercise of monopoly power. Running dummy flights that never fly so that slots are occupied and competition is excluded is a simple regulatory issue, not paying penalties to passengers on flights that are cancelled (as occurs with European airlines) is also a simple regulatory issue. But the core problem is lack of competition. The decision to (for example) restrict Qatar hurts all downstream tourism industries and outbound Australian travellers. The idea that restricting capacity generates some sort of "optimal tariff" on service exports is nonsense. The high prices on particular routes are split with foreign carriers who share capacity, outbound Aussies lose benefits by being slugged with the high fares and the airports, hotels, restaurants and other local service providers lose.
Concentrating on the sins of Qantas and Allan Joyce misses the point. They are acting as a selfish monopolist will - the consequence of unnecessarily restrictive air service agreements.
Joyce is responding to incentives, and so are the politicians who respond to the incentives he gives them. There's no reason to focus on one and excuse the other.
As for me, I've doing my small part , along with many ohters, to change the incentives they face. Seems to have had some effect this time.
“There is no company in Australia that immediately says ‘Australia’ like this brand of Qantas.” Albanese was, inadvertently perhaps, 100% correct.
A mismanaged, shambolic, corrupted entity run for the benefit of a political managerial class and shareholders rather than customers and staff, relying on almost comical cultural memes for any trace of respectability that were long since gutted and outdated by rampant neoliberalism.
Cruel but fair !
Qantas can't have it both ways. And in an increasingly 'nationalised' airline world, perhaps it should be renationalised. Qantas has demonstrated it cannot compete with the likes of New Zealand, Singapore and Emirates, all of which are supported financially by their respective governments, without breaking the law. So why not level the playing field? It would be much cheaper for the Australian taxpayer.
Back in the day, Paul Keating would have said that the ALP Left didn't know its arse from its elbow. Today, he might say that the ALP Left doesn't know its arse from its Albo.
Keating gave us negative gearing for cars - hence Westconnex/Worstconnex- and negative gearing for housing - hence housing crisis aided by mass tourism & platform
economy for short term rental.
That's not quite true. Those things were always in the system, Keating didn't fix them. The reforms from the tax summit reduced some of the worst rorts, but that was only because Keating's preferred option (GST) didn't get up
Jesus wept tears of blood, for such as these.
The week when the mask fell away and tawdriness ruled.
Nice headline, and Michael West (?) pic: Albo wearing a Rio Tinto shirt....yet to conceive FF as Big Tobacco.
The failure of competition is purely due to government. Allowing Qatar extra flights would have improved this and reduced the incentives for Qantas to treat customers badly.
You don't think Qantas had any influence on this outcome?
I think the lack of competition permits irresponsible behaviour and the exercise of monopoly power. Running dummy flights that never fly so that slots are occupied and competition is excluded is a simple regulatory issue, not paying penalties to passengers on flights that are cancelled (as occurs with European airlines) is also a simple regulatory issue. But the core problem is lack of competition. The decision to (for example) restrict Qatar hurts all downstream tourism industries and outbound Australian travellers. The idea that restricting capacity generates some sort of "optimal tariff" on service exports is nonsense. The high prices on particular routes are split with foreign carriers who share capacity, outbound Aussies lose benefits by being slugged with the high fares and the airports, hotels, restaurants and other local service providers lose.
Concentrating on the sins of Qantas and Allan Joyce misses the point. They are acting as a selfish monopolist will - the consequence of unnecessarily restrictive air service agreements.
Joyce is responding to incentives, and so are the politicians who respond to the incentives he gives them. There's no reason to focus on one and excuse the other.
As for me, I've doing my small part , along with many ohters, to change the incentives they face. Seems to have had some effect this time.