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Old Oct 29, 2011, 2:21 am
  #62  
chandi
 
Join Date: Nov 2003
Location: Melbourne, Australia; NYC, LHR, GVA
Programs: UA 1K 2MM; QF 1P; DJ WP; CX DIA, EK GL, HH DIAMOND; PC Spire RA; SPG PLAT; HERTZ PC; Avis CC
Posts: 255
Originally Posted by dddc
I love it when I hear arguments like this. It commoditises a job role globally. Sure, why have a call centre staffed locally on big wages when you can offshore it to a third world country for less? Why not go overseas for cosmetic dentistry or surgery? Maybe its because the paying customers don't want a third rate service. (Take note at the number of companies bring call centres back on shore and making a song and dance about it!)
Both QF and SQ fly MEL-(SIN/LHR). They compete for the same customers. They fly the same planes. They offer the same (in many general ways) the same service. But for QF providing this service costs 20% more than SQ. But evidence in passenger traffic already shows that QF cannot charge 20% more for the same service.

Same argument can go for US flights with UA.

But my local doctor in Melbourne does not compete for the same patients as the local doctor in SIN or BKK or even NYC. So the Melbourne doctor does not need to consider the fees charged by the SIN or BKK doctors when they set their fees.

This is why it is cheaper to buy a house in Broadmeadows or Dandenong than Hawthorn but your phone costs the same. Local pricing works in certain industries and do not in others. Air travel is one of these were global relativities have always been important. Historically this is why the QF pilots are paid so heavily as the rates were agreed when the $1UAD ~= $USD 0.50 so that a QF pilot was remunerated at a similar level as a SQ or BA pilot.
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