Qantas Equity $1.9B Raising and Announcements June 2020

[AIRwin]

The duds will stay on because they know deep down they will neve

Or they are also passionate about the industry like us on AFF...

 

[milehighclub]

The duds will stay on because they know deep down they will never be able to find another job elsewhere.

Not being a dud isn't any easier. Crew are struggling to get jobs, myself included. Although it may be easier to commit to a job long term now with this annoucement.

 

[Dr Ralph]

Anyone else hear AJ say no International flights until July 2021?

Not what was said.

' It’s clear that International travel is likely to be stalled for a long time.'

CEO speech – Qantas Group Post-COVID recovery plan



' it will take years before international flying returns to what it was.'

QANTAS GROUP ANNOUNCES POST-COVID RECOVERY PLAN AND EQUITY RAISING FOR A STRONGER FUTURE


But some have certainly interpreted the announcement as no international flights until July 2021:

' Qantas Will Not Offer Any International Flights Until July 2021'

Qantas Will Not Offer Any International Flights Until July 2021



' Your next overseas trip just got pushed back to July 2021 at least'

Your next overseas trip just got pushed back to July 2021 at least

 

[OATEK]

I am a bit surprised that no one has made a major issue of the fact that with the A380s out of sight and perhaps gone forever, F is also gone!

 

[NM]

One problem with voluntary redundancies may be that (counter intuitively) 'the best and brightest' decide to leave, but not those who are not great at pulling their weight.

That's the thing with the airline industry, especially with Qantas.
The duds will stay on because they know deep down they will never be able to find another job elsewhere.

And those close to retirement may well be pleased with an opportunity to retire early with a decent redundancy payout. If I was less than 5 years out from my planned retirement, I would likely see redundancy as a good outcome. Many Qantas employees have been with the company for a long time and redundancy entitlements will likely be significant for them. This can also result in the loss of a great deal of experience and knowledge as the senior people and "re-employable" people leave the organisation.

Of course this does not apply to all and many, many people will be severely impacted, just as so many have been impacted from other employment sectors.

Other than retirement or a change in career, there will be little opportunity for finding new employment within the aviation industry for quite a long time.

 

[Melburnian1]

Not being a dud isn't any easier. Crew are struggling to get jobs, myself included. Although it may be easier to commit to a job long term now with this annoucement.

Mile, no one thinks of you as a 'dud.' You come across a highly motivated individual.

The economy has to start growing to soak up the large numbers who've lost jobs in recent months. One report today said Oz was better placed than others, although still (as of today) in negative territory. It didn't however mention what the situation will be on 27 September when some (or all) sectors will see JobKeeper payments cease. Many of us will have seen numerous claims that there are 'zombie companies' ready to fold, or having to be liquidated by force, when JobKeeper is no more.

Until State borders reopen, it's hard to see economic growth because (at least in hospitality and passenger transport) a goodly amount of activity is from interstate visitors/travellers. I don't buy the optimism from state governments that intrastate spending will replace all this because for many reasons (including 'been there done that') people spend more when they go interstate (as do foreign tourists when they come to Oz).

Whatever peoples' skills, transitioning sectors is not always easy. If one has worked for the same company for a long time, recruiters nowadays may regard this as a negative. That you or I don't agree is immaterial.

 

[NM]

Not being a dud isn't any easier. Crew are struggling to get jobs, myself included. Although it may be easier to commit to a job long term now with this annoucement.

Wishing you and your colleagues all the very best in your search for work, either retained by your current employer or elsewhere.

 

[jase05]

Not what was said.

Yes and that was explained further up the page.

 

[antycbr]

I know that QFF is a revenue powerhouse for QF, however with limited international travel options, people losing their job and not spending on credit cards, and those who continue looking for less expensive options, I wonder if we will start to see some larger revenue declines in this division. The lure of a sign up bonus for say 100K QFF points isn't as great if you can't leave Australia.

Most of the lure of points earn is for international travel, or at least premium travel. For the next year if we are confined to Australia and some other bubble countries availability will be tough as well - there's people with multimillion point balances and nothing to use them on - and a lot have continued to earn to some extent over the last three months plus have received refunds if they had travel booked. The balances must be massive.

 

[Melburnian1]

This is what a City(bank) analyst said about QF on Thursday 25 June 2020:

“...While efforts to bolster liquidity and support the balance sheet will help, the path to recovery will be impacted by a multitude of factors beyond Qantas’ control.

“A return to domestic operations and reduced operating costs will be key for stabilsing the business. With a weaker outlook for global economic growth, potential for structural changes to demand and competition, Qantas will need to adapt to a significantly changed global aviation industry.

“We see near-term risks from a delayed start to domestic operations, impacts from lower yields and airfares to stimulate demand and a more gradual return to travel for the lucrative business and SME segments...”

 

[eastwest101]

Look, I know nobody saw CV19 coming and I know this is a well-worn gripe, but this seems to me to be a striking example of the nonsense and self-serving nature of most share buy-back schemes. What a pity they didn't just hold on to that cash for a virusy day, eh?
QAN's Final Share Buy Back Notice was only last November (I realise the money was not all spent immediately before the Notice), and the figures therein show they paid an average of $5.56 per share, which shares they are now effectively selling for $3.65. Great work, guys!
As every good stockbroker will tell you; buy high and sell low!

Its a gripe that should be highlighted in my opinion, airlines are volatile businesses and Covid-19 is a bit of a black swan, but that QAN share buyback was just an official announcement that "Qantas management are officially out of ideas, out to lunch and interested in pumping up their own KPI's and renumeration."

As soon as a company announces share buybacks, that the cue for shareholders to take their profits, leave and don't come back until new management are installed.....

Back on topic - yes the loss of F services, A380s and B747s, loss of international travel and basically anything even remotely "nice" about flying has made the QFF program much less attractive. Basically the state and federal governments have "Aeroplan-ed" the QFF business by removing an attractive airline component from a loyalty scheme, just like Velocity will struggle without a viable airline either.

Who is going to care about airline loyalty points or status when the job losses and recession really starts to hit? No-one will - thats who.

 

[Melburnian1]

From Alan Joyce's speech, this was a strange claim given that the A388s are unlikely to fly again for his company:

'...We know that flying will return. Our people will be back in the skies. No aircraft will sit idle. And new ones will be arriving – including for more ultra long-haul flights....'

 

[Melburnian1]

...Who is going to care about airline loyalty points or status when the job losses and recession really starts to hit? No-one will - thats who.

Inability to redeem will fuel this. But given huge numbers of Australians' obsession with FF schemes, how will we cope?

Like many on this site, I want to go o/s as soon as (safely) possible but it appears that much of the joy of it will be removed.

From check in to alighting, it looks like it will become either less pleasant or decidedly unpleasant.

 

[jenib]

The economy has to start growing to soak up the large numbers who've lost jobs in recent months. One report today said Oz was better placed than others, although still (as of today) in negative territory.
...
Until State borders reopen, it's hard to see economic growth because (at least in hospitality and passenger transport) a goodly amount of activity is from interstate visitors/travellers. I don't buy the optimism from state governments that intrastate spending will replace all this because for many reasons (including 'been there done that') people spend more when they go interstate (as do foreign tourists when they come to Oz).

I agree it is very tough for everyone involved and because a lot of people will have a shortage of money due to unemployment and underemployment, that will mean less money to spend on holidays. The cost of local holidays haven't compared well to the cost of overseas holidays either.

However, I have often heard recommendations that overseas holidays were best done when relatively young, mobile and healthy and to leave domestic holidays until you are older and less healthy. I think that many people who are used to holidaying overseas have not seen much of our own country or even their own state. Now that they cannot go overseas, they should be more likely to explore their own backyard/state/country. It will be interesting to see what happens. There is also a social media push to support local businesses and book direct instead of using travel aggregators who charge the businesses quite large fees.

From cold Canberra, I am definitely looking around for where to go in NSW (and/or further north if the border opens) whereas in the past I was travelling internationally and leaving most of those domestic trips until later.
If I wanted to invest in shares, I would also be investing in caravan companies

 

[kamchatsky]

Its a gripe that should be highlighted in my opinion, airlines are volatile businesses and Covid-19 is a bit of a black swan, but that QAN share buyback was just an official announcement that "Qantas management are officially out of ideas, out to lunch and interested in pumping up their own KPI's and renumeration."

As soon as a company announces share buybacks, that the cue for shareholders to take their profits, leave and don't come back until new management are installed.....

And I think AJ got $20 million renumeration package as a result of the share buyback and as a result an increase in Share Price? I think they had to sell SYD T3 for it?

 

[eminere]

I am a bit surprised that no one has made a major issue of the fact that with the A380s out of sight and perhaps gone forever, F is also gone!

And with that, the fate of the F lounges also hangs in the balance.

 

[jakeseven7]

And with that, the fate of the F lounges also hangs in the balance.

Dramatic much

 

[eminere]

Dramatic much

I don't think so.

 

[Kendall Roy]

Sadly, I think it's safe to say: RIP QF A380

Would be nice if OQA was museum'd in AUS.

 

[p--and--t]

Sadly, I think it's safe to say: RIP QF A380

Would be nice if OQA was museum'd in AUS.

Would be good in the future to take grand-kids to see a relic of third golden era of flying (aka first fitouts of Flying boats, B747 then the A380) before we dropped back to smaller "economical" planes.