Qantas slashing jobs and possibly selling FF program?

[Awesom Andy]

I think the bigger problem here is that, all AU based airline groups that operate international flights are losing money.

 

[JohnK]

So many people angry at Qantas and Alan Joyce (who is merely the face in front of a large management team making these decisions) but do you seriously think that Virgin Australia would come in and start flying to Europe from Adelaide ?

Well clearly this management team has failed to deliver.

Time for a change. Not just at the top. Surely that is worth a shot instead of trusting the current management team to find a viable solution.

 

[JohnK]

Easy to say when one lives there.

I am not a good example and I do not quite live in SYD full time. Yet I have no issue connecting via every other capital city except for ADL as I did not get a chance before QF pulled the plug.

 

[beardoc]

Further analysis: Cookies must be enabled. | The Australian

An important line from that article: "The big question Joyce and the board will now be asking themselves is whether Qantas can afford to maintain its so-called line in the sand of 65 per cent market share."



That's where this operating loss has come from - an insistence that QANTAS should maintain 65% of the market, and that they'll maintain capacity at all costs to achieve that. It's seeming that endlessly putting planes up in the air just to keep your majority market share isn't sustainable.

 

[farstar]

The current QANTAS special fares to SYD-LHR at the moment are codeshares on Emirates only. Does that mean QF1 is always full so no seats available for specials or does it mean they want to encourage people to fly codeshare as it makes them more money and the way of the future.

 

[ReLoad]

A little bit of brainstorming to help out our little kangaroo buddy.

Fuel and wages are two of the biggest expenses and realistically you have to keep paying both, but the price of one is quite a bit more flexible.

If EK was to take a 25-50% stake in QF would the combined purchasing power reduce QFs Fuel bill to the point of instant profitability?

Does EK in its geographical position and govt ownership purchase cheaper fuel?

What about engineering? Same applies, heavy servicing, aircraft purchasing etc.

Is it a silver bullet?

 

[Supersonic Swinger]

The current QANTAS special fares to SYD-LHR at the moment are codeshares on Emirates only. Does that mean QF1 is always full so no seats available for specials or does it mean they want to encourage people to fly codeshare as it makes them more money and the way of the future.

Based on the reports by pilots in the AFR of half empty QF A380s headed to Dubai, I think the latter...

 

[Oxy]

no it's not that easy since 21,000,000 or more of us live over here

With the figure of 21,000,000 I presume you mean the whole of Australia, not sure what else you mean though.

 

[Aussie_flyer]

With the figure of 21,000,000 I presume you mean the whole of Australia, not sure what else you mean though.

Population clock

 

[Oxy]

I would like to think so, as well, but what is in it for the likes of CX and MH to have a closer relationship with Qantas?

Taking MEL as an example (because I'm most familiar with it) - CX has 3 flights per day, and QF have one. Which leaves 2 hours after the morning CX flight. MH, likewise, has 3 flights to KUL and QF has none (!)

Why should CX or MH feed QF into Australia when they are capable of doing it themselves and keep more of the profits? The only advantage that QF has is for traffic destined for cities outside SYD, MEL, BNE, CNS, ADL and PER. Of which I don't think there is much.

MH has only recently started a 3rd flight from MEL, which is a risk and investment for them. Partnering with QF could provide them with the option of transferring that risk to QF, while still increasing throu traffic on their network. Pretty similar to the EK deal really.
Likewise VA and EY seem to have worked it out quite well to AUH, where they share operation of the 2nd daily flight EX sYD.
Im sure if QF really wanted to they could have done something similar, but they have probably burnt all those bridges by now.
And what is code sharing on CZ going to achieve, just showing how desperate they are.

 

[markis10]

Why should CX or MH feed QF into Australia when they are capable of doing it themselves and keep more of the profits? The only advantage that QF has is for traffic destined for cities outside SYD, MEL, BNE, CNS, ADL and PER. Of which I don't think there is much.

You forgot Tassie and the NT, both of which have significant tourism traffic. And speaking of profits, MH would love some, their loss this year is 2X last years.

 

[Aussie_flyer]

Thai are also losing bucket loads this year :-(

 

[Oxy]

Population clock

So that figure is Australia's population -PER?

Its not as though 21000000 people would be worse off if QF flew direct PER-Asia(except SIN) which is what your implying I think. Worst case 4000000 in SYD would have to go via PER to BKK,HKG,CGK etc. No one outside of SYD is really disadvantaged, because they still have to transit somewhere. At least PER is less out off the way.
Plus the 2000000(?) in PER get much better access, also Adelaide. Frequency could improve, as there would be shorter international routes.

 

[willjd]

Based on the reports by pilots in the AFR of half empty QF A380s headed to Dubai, I think the latter...

By no means am i saying this is wrong but in my experience of flying MEL - DXB - LHR (3 times this year), everytime economy has been choc a bloc. Not a spare seat, and no points upgrade sucessful either.

Where can you see the load factors for particular flights? I am always amazed when they say QFi is losing money but i assume they mean the premium paying passengers rather than cattle class which is always packed...

 

[Supersonic Swinger]

So that figure is Australia's population -PER?

Its not as though 21000000 people would be worse off if QF flew direct PER-Asia(except SIN) which is what your implying I think. Worst case 4000000 in SYD would have to go via PER to BKK,HKG,CGK etc. No one outside of SYD is really disadvantaged, because they still have to transit somewhere. At least PER is less out off the way.
Plus the 2000000(?) in PER get much better access, also Adelaide. Frequency could improve, as there would be shorter international routes.

East coast transiting West coast and vice versa is nonsense when getting to Asian or European destinations.

This is what oneworld partner hubs in KL, HKG, and Doha should have been. Instead there's now a hodge-podge of Dubai, Jetstar Asia and China Southern (!).

 

[Pushka]

I did not say you in PER backtracking to SYD was a good idea. But someone in ADL shouldn't have an issue.

I simply think it is not fair for Qantas to have to service every Australian capital with every major city in Asia but certainly some routes if profitable would be a good idea.

Qantas is never going to be able to compete with SQ, TG, MH, CX etc bringing you into their hubs and then on from there.

Back to ADL again. What is wrong with ADL-SYD-BKK on Qantas? Is ADL-HKG-BKK or ADL-KUL-BKK better? Yes I know TG could be an option but that is not Oneworld nor is it much choice.

I really hate going backwards on domestic flights going internationally just because that's what Qantas wants me to do. I'd much rather have a stop over in HK or fly SQ through efficient Singapore than spend an extra 6 hours backtracking through Sydney.

 

[Aussie_flyer]

I really hate going backwards on domestic flights going internationally just because that's what Qantas wants me to do. I'd much rather have a stop over in HK or fly SQ through efficient Singapore than spend an extra 6 hours backtracking through Sydney.

I just don't see why you feel Qantas is obligated to serve the routes YOU want despite it not being financially viable for them. Most airlines operate out of a major hub and Sydney is our biggest city and halfway between the 2nd and 3rd largest cities. Those with more than one major hub are airlines based in countries with 10x or more the population of of Australia.

 

[Oxy]

East coast transiting West coast and vice versa is nonsense when getting to Asian or European destinations.

I would have thought that West Coast going via East Coast to Asia makes less sense!

 

[Aussie_flyer]

I would have thought that West Coast going via East Coast to Asia makes less sense!

Qantas can't be all things to all people unless they have a bottomless pit of money. So flying Perth to major asian cities is just not going to work because they will never have the onward traffic that CX, MH, SQ have. And if you think that sending 90% of the population on a trip across the continent to connect will work then your dreaming.

 

[zachary.august]

If you ask me, it's posturing. No government, especially since the LIBs already let another airline tank in their time (cough Ansett), wants to be the one that let an airline as iconic and large as QF fold. In all likelihood, we will see the government take a stake in QF and inject some finances. They'll probably cut a few more jobs and stem the losses to an acceptable point