"Thanks for your great response re Aust. Housing prices.

"At the seminar, I didn't get a chance to fully introduce myself as you always had a swarm of delegates around you, like "flies to a pork chop"!

"I have been a pilot with Qantas for 26 years providing safety and service throughout troubling times...SARS, GFC and a few Rolls Royce engine problems. But this is why people buy the Qantas brand, they expect these high standards.

"This Qantas brand is being slowly destroyed by management as they try and turn Qantas into a low cost carrier.

"Engagement with management is at an all time low with strikes imminent as they try to outsource to more foreign pilots at lower wage and experience levels.

"All our Aust. to New Zealand flights are been flown by a foreign company with low cost pilots. Qantas has not trained these pilots and has no input or monitoring of their standards! The travelling public get an aircraft painted in Qantas colours but crewed and maintained by foreigners, they are being conned! Not the Brand they where expecting.

"The charts show the share has plummeted from $6 to just $2. I believe the airline could be turned around if the management would engaged its loyal Australian staff as Southwest, Continental and now Virgin Australia CEO's has shown. Our CEO calling us pilots "Kamikaze's" in the press recently, is not engaging.

"With support of the share price at $1.85 do you see signs of a bounce?

"Wishful thinking is that a bounce could be caused by the major shareholders removing the board and CEO."

Eoin Treacy's view Thank you for this insightful email. I was sorry not to be able to spend more time getting to know each and every delegate at my recent seminars which are a privilege to conduct not least because of the wealth of experience concentrated in the room.

David has long remarked that he was always impressed by the quality of service available on Qantas when he flew with them between 1980 and 2000. The quality of aircraft on my recent excursions was excellent but there was a distinct stroppy attitude to some of the cabin crew which was unbecoming. Mrs. Treacy and I both remarked on the rather meagre in-flight meals on the way to and from Australia and concluded it was as a result of cost cutting measures. Qantas is not alone in attempting to cut costs to remain competitive and this is a difficult environment for the industry generally. Our hope is that the airline pulls through its current difficulties with its service and reputation intact.

The strength of the Australian Dollar has mitigated fuel cost price rises more than for other airlines but they are still a significant headwind for the sector generally. More importantly the Australian Dollar's strength is making Australia a more expensive tourist destination both for foreigners and locals. If as you point out strikes are imminent, that is unlikely to be a bullish catalyst for the share.

Qantas has deteriorated markedly since retesting the A$3 area in November. It is becoming overextended in the short term following a pick-up in the pace of the decline over the last few weeks. The A$1.85 area offered support in early 2009 and prices are approaching that area at present. However, a clear upward dynamic would be required to indicate a return of demand in this area. Over the medium-term the 8-month progression of lower highs will need to be broken, with a sustained move above A$2.25, to indicate a return to medium-term demand dominance.

Air France, Aer Lingus, AMR Corp, Delta Air Lines, Jet Blue, US Airways, Skywest , All Nippon, British Airways, EasyJet and Malaysian Airlines share relatively similar patterns of underperformance. United Continental, Southwest Airlines, Skywest and Allegiant Travel all rallied more from their 2008 lows but have also posted lower rally highs since November.

Additionally, shares for Deutsche Lufthansa, China Airlines, Thai Airways (in particular), Cathay Pacific, Korean Airways, Singapore Airlines and China East Airlines which had previously been trending relatively consistently have all experienced deeper pullbacks, fallen below their respective 200-day MAs, encountered resistance in the region of that trend mean and to varying degrees have fallen to retest or break below their March lows. At a minimum, clear upward dynamics sustained for more than a day or two would be required to check current scope for further tests of underlying trading. Moves back above their respective 200-day MAs would be needed to suggest returns to medium-term demand dominance. A significant weakening in the oil price would likely be required to act as catalyst for such an eventuality.

Relative strength leader, Alaskan Airways has failed to sustain the breakout from the most recent range making a retest of the $59 area more likely. This currently coincides with the 200-day MA and it will have to find support in that area if the medium-term uptrend is to remain relatively consistent.

Ryanair has held up somewhat better than other carriers of late but considering the relative weakness of the sector, this cannot be taken for granted. It will need to hold its progression of higher major reaction lows, currently near €3.12, if the medium-term uptrend is to continue to be given the benefit of the doubt.