Qantas: analysts tip $868m loss ahead for 2014 financial year

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I doubt anything's going to significantly boost QF revenue (except, perhaps introducing 787s). So, expect cuts to benefits, starting with the most marginal customers.
 
DC3 said:
Meaning that I'm not looking forward to any "quick and decisive action" from the QF management, that will be appropriate.
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I see..........you are a VA fan, and it would be better for QF to continue down this path? I'm not sure this would be good though, isn't it better that we have competition?

I'm in the other camp and would dearly love to see QF thrive, but fear the route taken has not been the best.
 
TonyHancock said:
I see..........you are a VA fan, and it would be better for QF to continue down this path? I'm not sure this would be good though, isn't it better that we have competition?

I'm in the other camp and would dearly love to see QF thrive, but fear the route taken has not been the best.
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No. Not a big fan of VA at all. In fact I've stopped flying with VA and am concentrating on maintaining my QF status.

However, based on their past record, I have little faith in the current QF management's abilities.
 
Perhaps Qantas should stick to running a decent airline rather than pretending to be a financial institution?
 
SeatBackForward said:
Perhaps Qantas should stick to running a decent airline rather than pretending to be a financial institution?
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I both agree with this quote and disagree with it all at the same time.

QF needs to change as the industry changes and the market changes.

Every business/industry needs to keep changing.

Should QF look at buying a car rental business and then bundle the car in with the flights.

The Telco industry is bundling more and more and saving people money and it is making people more loyal to there Telco.
 
Better check to see who shorted QAN shares in the last couple of weeks seeing they did a plunge on the "official" announcement of a $250 million to $300 million loss this half year.
 
Simo said:
I both agree with this quote and disagree with it all at the same time.

QF needs to change as the industry changes and the market changes.

Every business/industry needs to keep changing.

Should QF look at buying a car rental business and then bundle the car in with the flights.

The Telco industry is bundling more and more and saving people money and it is making people more loyal to there Telco.
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The whole QFi thing is almost just a hindrance to them running their FF scheme.
 
flying_double said:
Phew, lucky they've got that profit maximising 65% domestic market share!! Imagine the result otherwise
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So what share should Qantas give up to Virgin.
60%
50%
40%
0%
At some point you do have to fight to keep market share. Otherwise your competitor will eat you alive.

Argument has always been to keep the premium which Qantas generally has over the other airlines (including Virgin) there are a few things
- Schedule
- Lounges
- Food and drinks on board

If you give up market share, you give up the schedule advantage.
 
Supersonic Swinger said:
The 'best frequent flyer program in the world' according to the CEO :rolleyes: Maybe all his decisions are made applying that misguided lens...
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IMHO without QFi, the value of FF shrinks drastically.... and becomes more of a FlyBuys program.
International flight rewards at decent value are a massive bonus for the FF program.
 
moa999 said:
So what share should Qantas give up to Virgin.
60%
50%
40%
0%
At some point you do have to fight to keep market share. Otherwise your competitor will eat you alive.

Argument has always been to keep the premium which Qantas generally has over the other airlines (including Virgin) there are a few things
- Schedule
- Lounges
- Food and drinks on board

If you give up market share, you give up the schedule advantage.
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It's not about a percentage it is about maximising profitability. You fly the number of planes that you can fill with a good yield and healthy load factor. No more and no less.

Flying half empty planes around in order to maintain an imaginary line in the sand is simply a recipe for losing money. On a lot of those routes the "schedule advantage" is marginal at best - SYD MEL the difference between a flight every 15 minutes and every half hour isn't worth the cost.
 
Yes but if QF never adds capacity due to profit concerns and your competitor continues to add capacity you will shrink to oblivion.

Reality is this is what has happened on international routes
 
Just announced

Qantas has just announced a trading halt for its shares on the Australian Stock Exhange, pending "receipt of information from Standard and Poor's in relation to Qantas' credit rating".
The S&P rating is considered to be "materially price sensitive," with Qantas requesting that the trading halt remain in place until either the announcement is received or the commencement of trading on Monday 09 December, whichever is earlier
 
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Apparently that will mean an extra $120m a year in borrowing costs if the debt is downgraded. Ouch.
 
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