Qantas slashing jobs and possibly selling FF program?

[Pushka]

. And if you think that sending 90% of the population on a trip across the continent to connect will work then your dreaming.

But that is exactly what you are expecting passengers from Adelaide and Perth to do if they want to fly Qantas internationally.

So bottom line is that Qantas only wants to serve Eastern seaboard internationally. So really why would we care other than for the staff who will lose their job.

But I agree with Zachary. They are just posturing. They want to broker a deal that currently they aren't allowed to do so this is the response.

 

[cove]

Qantas needs to right size itself for the domestic market, roll back some pay rates where they are not competitive and generally review purchasing and IT. This will be happening but the QF board and upper management seem to have been slow in their work to make profits in the domestic market.
Removing excess capacity on routes takes time.

 

[BAM1748]

I don't remember ever reading about an airline who cost cut their way to profit.

 

[777]

Qantas needs to right size itself for the domestic market, roll back some pay rates where they are not competitive and generally review purchasing and IT. This will be happening but the QF board and upper management seem to have been slow in their work to make profits in the domestic market.
Removing excess capacity on routes takes time.

What is nuts about all this is that THEY ARE ADDING excess capacity. The only thing they said they would not review yesterday was the 65% "line in the sand" when it strikes anyone who gives it half a glance that it is clearly not "profit maximising."

AJ needs to swallow his pride and reduce domestic capacity until the planes are close to full. I can't believe they are insisting that won't do it but they want to be bailed out.

 

[Mal]

The line in the sand is a desperately scrawled "SOS".
I think some of this is posturing but really the board needs a spill. Hopefully the shareholders are ready to bring out the pitchforks and torches

 

[cove]

I have a torch.

 

[SeatBackForward]

Essentially what WF is doing is trying to force the Gov'ts hand into relaxing he ownership laws, or to provide funding. I think the final result will see some select investors getting on board QAN, value stripping it to bits and being left with QF for select prime domestic and Intl routes and JQ for everything else.

 

[dk4]

Re: Qantas to cut 1,000 Jobs.

I really believe this is an actual crisis. At the end i suspect AJ will lose his job and Qantas to sell off a whole range of assets (which ones? who knows) to stay afloat. What the consequences will be for the rest of us?

If we go with your premise, that this is more than a hissyfit outburst from the CEO or a toddler temper tantrum because things didn't go his way in the playground, then the assets that must go are the ones which will pull the biggest buck. Clearly that's the Loyalty/Frequent Flyer Program and Jetstar Airways. (A 100% sale of an unencumbered Jetstar Airways; with no ties or obligations to Qantas, will probably raise a pretty penny. Plus, without JQi (or a restructured JQi like VAi) it could be sold 100% to a foreign buyers, without the need to use a facility like an IPO, or Australian institutions to guarantee a float.)

Also a sale of Jetstar - JQ, fulfills a national interest test, because it will leave us with a solid competitive domestic market place: 3 strong, large, mature, independent airlines (by size - QF, VA/TT & JQ), none of which is too big to fail (should a future management team lead one of them down the garden path). Plus some small independents nipping at their heals, if one of the "big three" steers themselves into a Titanic iceberg.

Yes, QAN will need to contract, so yes there will be significant job losses there. The current management team has not been able to lower staff costs sufficiently, and this will also help them achieve it, or it goes out of business.

What is also clear from the current situation, is that QAN is prepared to use its size to hold our country to ransom, so the only solution for the government is to ensure it is split up, so it will never again be able to use this tactic.

Also if they are downgraded from "investment grade" to "junk" which seems likely then they can no longer count on forward bookings as cash, assets that are currently unencumbered will effectively become mortgaged and the cost of their debt will balloon overnight. A lot of that is accounting and it can change quickly.

This is the more worrying aspect, because with the flip of an accountant's switch, and as they have negative cash flow, they may become insolvent overnight.

But, unlike Ansett, the various parts of QAN (as long as QF and its goodwill remains in the air) are worth significantly more as separate entities, than they are together as a whole business. (So in that sense, it's a case of - divided they stand, together they fall.) But if the QAN board doesn't have the stomach to carve up the company, and do so quickly, I am sure voluntarily allowing an administrator to do it, is a valid solution.

 

[Aussie_flyer]

But that is exactly what you are expecting passengers from Adelaide and Perth to do if they want to fly Qantas internationally.

So bottom line is that Qantas only wants to serve Eastern seaboard internationally. So really why would we care other than for the staff who will lose their job.

But I agree with Zachary. They are just posturing. They want to broker a deal that currently they aren't allowed to do so this is the response.

No I said they cant be all things to all people so yes you should fly another carrier and stop assuming a private company owes you a regular direct service from your city.

 

[Supersonic Swinger]

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

Neither makes much sense. What makes sense is coordinating with your ready-made oneworld partners based in KUL, HKG, NRT and DOH to provide your customers the necessary connectivity.

As it stands, on a multi-city booking on QF's website which involves HKG followed by London, QF doesn't even list the BA or CX direct options and expects you to fly one-stop via Dubai. Sorry Qantas, no.

 

[smit0847]

Thai are also losing bucket loads this year :-(

While they continue to hand out almost unlimited F and J award seats on almost every flight to their *A partners for next to nothing, I'm not surprised!

 

[mannej]

Neither makes much sense. What makes sense is coordinating with your ready-made oneworld partners based in KUL, HKG, NRT and DOH to provide your customers the necessary connectivity.

As it stands, on a multi-city booking on QF's website which involves HKG followed by London, QF doesn't even list the BA or CX direct options and expects you to fly one-stop via Dubai. Sorry Qantas, no.

Exactly - QF had the connections via SIN and HKG, yet their flights never seemed to match the connections. In this day and age, you show that disrespect to the market, they will give you the finger and book elsewhere.

 

[mannej]

No I said they cant be all things to all people so yes you should fly another carrier and stop assuming a private company owes you a regular direct service from your city.

Easy said when you are either from MEL, SYD or BNE.
So much for Qantas - the spirit of Australia (in reality it is the spirit of East of Melbourne)...

 

[cmon0005]

What I would like to see is JQ sold off in full and the rope cut lose, and would like to see QF either fully codeshare with MH or do a joint venture with MH all around asia from KUL.

 

[lovetravellingoz]

Re: Qantas to cut 1,000 Jobs.

mmm have been busy burning points through *A for several years and just letting the QFF build up as my non-preferred program. Looks like it is time to find ways to start burning those QFF points.

 

[smit0847]

Re: Qantas to cut 1,000 Jobs.

mmm have been busy burning points through *A for several years and just letting the QFF build up as my non-preferred program. Looks like it is time to find ways to start burning those QFF points.

I wouldn't be panicking but I also wouldn't be saving them for an overseas redemption in 5 years time.....

 

[smit0847]

What I would like to see is JQ sold off in full and the rope cut lose, and would like to see QF either fully codeshare with MH or do a joint venture with MH all around asia from KUL.

The problem with that is always going to be that KUL is not a major business destination which will make it harder to fill premium cabins (it not an overly popular lesiure destination either). IF QF and CX made up there would be enormous opportunities via HKG....

 

[lovetravellingoz]

Re: Qantas to cut 1,000 Jobs.

I wouldn't be panicking but I also wouldn't be saving them for an overseas redemption in 5 years time.....

Indeed. I never burn wastefully. But I had just been letting them build up as *A is so much easier to redeem and better value for my J/F international destinations.

So time to start burning as I do have almost a million now.

 

[777]

Re: Qantas to cut 1,000 Jobs.

Meanwhile... this is where at least some of the money is going...

Leak reveals risky moves in Jetstar bid

 

[Pushka]

No I said they cant be all things to all people so yes you should fly another carrier and stop assuming a private company owes you a regular direct service from your city.

Yep. Done that. As have many others.