QANTAS more efficient than ever… Shares are up, planes are down…
QANTAS planes maintained in Malaysia are far more efficient and cost-effective...
So 3 years ago there was a bunch of hoo-ha over the fact that QANTAS was laying off piles of Australian maintenance technicians so they could outsource the jobs to Malaysia. The logic behind it was, as with everything else these days, to increase efficiency and profitability of the whole organisation and therefore increase share prices to make the mum-and-dad investors happy.
And it worked brilliantly. QANTAS shares went up steadily for 18 months after the maintenance was cheapened and moved overseas… And then their planes sort of stopped working properly.
Since the beginning of their troubles in mid 2007, the QANTAS share price is now sitting at what it was worth in the end of 2005. Now can you understand the insight, logic and acumen that QANTAS board-members had to restructure the company?
It only cost 10-20,000 Australian jobs to find out that the lower the quality of service and maintenance gets, the lower the share price gets. That’s pretty efficient. Just ask Australia’s “greatest financial manager ever”, John W. Howard.
And this brings us back to our good friend, NSW Premier / car salesman, Morris Iemma. The completely un-shonky looking Premier has been pushing to sell off NSW electricity supply and services to “increase efficiency and profitability” of the organisation.
NSW Premier Morris Iemma plans to make NSW Electricity more efficient and cost-effective
Mr Iemma says that the “gold plated” engineering used by the electricity company is unnecessary and costs too much, limiting the efficiency of the enterprise.
Now, according to the Premier’s, but if we replace “gold plated” engineering with “aluminium plated” engineering, we’ll have much cheaper fees, higher profits and an overall more “efficient” electricity service.
Or we might have constant blackouts and then pay taxes to bail-out the company that can’t carry out it’s contracts professionally like Sydney’s Cross City Tunnel or London’s outsourced electricity services in the 90s.
Tags: aircraft, efficiency, outsourcing, qantas, shareholders, Technology
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August 19th, 2008 at 11:28 pm
There’re more and more Qantas incidents recently but is it fair that Malaysia was blamed for all these incidents? As what I’ve read from the news, Malaysia was not responsible for the maintenance of all Qantas planes. And even for those planes checked in Malaysia, the process was overseen by Qantas’s personnel as clarified by the media and also Qantas itself. There’re about 12 Qantas engineers positioned in Malaysia to provide oversight of the maintenance. So what’s actually the root cause of the abnormal state of Qantas recently? The safety level of the airline has been a critical issue now. Instead of finding excuse for all those incidents, it’s wise to prevent another incident again by looking into the safety standard thoroughly.
August 20th, 2008 at 10:17 am
Um, I really think that OUTSOURCING is probably the point of this article, not Malaysia…