What a weekend! Qantas was grounded. Now it’s un-grounded. Airline union strike action is certainly putting workplace laws through their paces. And everyone had something to complain about!
We don’t have much to say about it except that it roughly fits with our theory that the world is contracting. When you take away cheap credit and cheap energy from the global system, you get contraction instead of expansion. Part of that contraction is quite literally, fewer physical links between countries.
Besides which, airlines like Qantas are tough businesses to run. You have high fixed capital costs (airplanes), volatile fuel costs, airport costs, maintenance costs, and then different employment contracts with unions. Second to extractive industries, it’s probably one of the worst businesses to try and run, much less invest in.
Maybe if Qantas and its airline unions can’t make a deal, they can just sell the whole airline to China for a bailout.