Saturday, January 31, 2009

Truth or Fiction! Economics or Safety?








There appears to be a trend in Society where people blindly accept the spin (bullshit) that is peddled to them. For example, the airlines have different policies when it come to mobile phone use when taxiing to the terminal.

Qantas allows its passengers to turn on and use their mobiles, while Jetstar and Virgin Blue do not. The reason given by the latter two is for safety reasons, as they will be refueling.

After researching the internet, I can't find anything to verify the claim of volatility of jet fuel.

I think that the real reason that Jetstar and Virgin Blue don't want their customers to use mobile phones is because it will delay the boarding/departure process.

Customers handling their luggage, children, talking on mobiles and texting would further delay the process. So, the real reason is an economic one. Slowing the turnaround process costs the airlines money. The utilization of their jet fleets is maximized with a quick turnaround.

Qantas is not concerned as it has the dominant market share. It charges a substantial premium over the low cost airlines and does not have the economic pressure of quick turnarounds.

It would be unplatable to tells customers the truth. However if it is presented as a "little white lie" about safety, customers will blindly accept this.

Friday, January 30, 2009

Related Story to MacAir Collapse


The owner of MacAir Airlines, Mr Terry Byrt, is a substantial shareholder in RMA Energy Ltd, an ASX (Australian Stock Exchange) listed mining company. It was a darling of the bull market in 2007 when it's share price peaked at just over $2. In 2008, the highest price was 53c per share. Currently in 2009, the shares are trading in the 3.5c to 5c range. It was one of the best price improvement performers on the ASX in 2007.

RMA Energy Ltd was named after Sir Reg Ansett, an Australian aviation pioneer, who Mr Byrt greatly admired. Ansett Airlines of Australia Ltd, one of the Australia's airline duopoly, together with Qantas Ltd. Ansett disappeared into liquidation about 7 years ago and this has led to low cost ailines such as Virgin Blue and Jetstar, filling the void. This has resulted in fairer airfares for all Australian air travellers.

Mr Byrt had only acquired ownership of MacAir on 4 April 2008. Sadly, Mr Byrt's dreams of creating another Ansett Airlines has been flushed away with Suncorp appointing Justin Walsh of Ernst & Young as receiver. Mr Byrt had appointed Jonathan McLeod of McLeod Partners as voluntary administrator on Thursday night.

MacAir "Crash & Burn" After Suncorp Pulls Plug


Townsville based MacAir Airlines has been grounded by Suncorp Metway Ltd when it pulled the financial plug on the Company. Competition from Qantas on the Townsville to Mt Isa run has accelerated it's demise. Mining fly-in and fly-out business would have been reduced due to the falling commodity prices and mining companies shedding contractors and staff. It will be interesting to see if the Queensland Government steps in to assist MacAir. Travellers have been stranded. I don't know whether Qantas will offer to move these passengers. MacAir Airlines is a another local casualty of the World Recession.

Obama's Student Days

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Brisbane GPO at night

A panorama shot of Brisbane City Post Office taken on my iPhone. Click on the photo to enlarge it and see more detail.
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Byron Bay, New South Wales, Australia

Byron Bay & Main Beach, New South Wales about 8pm on 25 January 2009. This was taken with time lapse on my Canon G9. At the lookout on Clark's Beach.
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My First Blog

This is my first attempt at blogging. I have had a little practice at Micro-blogging with Twitter and this has given me the confidence to start a blog. I don't believe how easy it was to set up my Blog on Blogger. It is extremely easy, if you have a Google Account. Linking my Twitter feeds to my Blog was even easier. This is done through the "Settings" tab of your Twitter account.

The Real Web - Brisbane Backyard

Beautiful spider's web in a friend's backyard in Brisbane. Click on the photo to see greater detail of the web.
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