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Month: August 2014

Pay me not to use Knee Defender – don’t throw me off a flight

If you havn’t noticed the great debate about the Knee Defender – which stops the person in front of you on a flight reclining their seat, and got two passengers thrown off a flight in the USA recently, then read this article in the NYTimes.  People get awful upset about this stuff – but here is a kind of economically rationalist view: “The economists Anne Case and Christina Paxson advanced the theory that tall people earn more because they have higher I.Q.s. Taller men on the dating website OkCupid receive more messages from women and have more sex partners than their short counterparts. Instead of counting their blessings, or buying extra-legroom seats with some of their extra income, the tall have the gall to demand that the rules of flying be reconfigured to their advantage, just as everything else in life already has been. Sometimes — one Upshot editor who shall remain nameless included — they even use the Knee Defender to steal from their fellow passengers. Now that’s just wrong.” Read the full Josh Barro article here: Don’t Want Me to Recline My Airline Seat? You Can Pay...

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Nick Xenophon gives a great summary of the decline of Qantas

Independent Senator from SA gives a great roundup of the Joyce years at Qantas. Joyce has earned $22.2 million as chief executive and in the 2012-13 financial year his $5.1 million package matches the combined salaries of the Cathay, Singapore and Air New Zealand chiefs. Shareholder value seems inversely proportional to Joyce’s pay packet. Qantas shares today are worth 40 per cent less than when Joyce took over.  Read the full article: Qantas chief Alan Joyce has plenty of questions to...

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Qantas and Alan Joyce – worse than expected, and that’s just their financial performance

Qantas today reported an underlying loss before tax of AU$646 million – with a statutory loss after tax of AU$2.8 billion, but Alan Joyce is not to blame. It was all the other airlines fault, for being more competitive and putting too many seats on the market. Oh, and fuel got more expensive (wasn’t it more expensive for all airlines?). Oh, and we did some restructuring, and sacked people and had to pay them out – which cost us quite a lot of money – but really that is a saving! Oh, and less people decided to fly (with us), so its really their fault. Oh, and we did save quite a lot of money by giving people shittier meals and less service (Ahem!) I mean more efficient service. Let me do some translation from Alan Joyce’s opening remarks about underlying results: ‘The cumulative effect of two years of market capacity growth outstripping demand,’= we put on too many flights that no one wanted to travel on in an attempt to beat Virgin ‘A record high fuel cost of $4.5 billion, up $253 million on the prior year, and’= compared to other airlines we got our fuel hedging strategy wrong? ‘Weaker demand due to an environment of lower consumer confidence, with reduced activity by business, particularly the mining and government sectors’= we fiddled around with other stuff while consumer...

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Australian Domestic Airlines – ontime Arrival

  The Bureau of Infrastructure, Transport and Regional Economics recently published its June airline arrival statistics. So to save you the drudgery – here are the major findings:Want your flight cancelled ?– Travel on Tiger or Qantaslink, or– Travel on the Canberra / Sydney routeWant to arrive on time ? –  Travel on Qantas or Regional ExpressWant to Depart on time ?– Travel on Qantas or Regional Express On the whole, on time arrivals and departures as well as cancellations are worse than the same time last year. For the full report, in case you have an insomnia problem, you can download...

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