Qantas slashing jobs and possibly selling FF program?

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Have to 100% agree with this, its almost like they are putting their ego over being the biggest over running at a profit. Not that this is apparently unusual for airlines but why Qantas would want to be the "leader" when being a leader just means losing more money than the other airline is beyond me. Cut your losses and let Virgin lose some of that money if they really want to.

A bit like selling travel at a higher price because Qantas is a "premium carrier" - even when that travel is 100% on the opposition as a code-share. Are there really that many mug punters out there?

Regards,

BD
 
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Interesting discussion here, I am intruiged that 777 is possibly predicting the end of Alan Joyce's tenure at QF as a lot of 777's predictions often turn out to be quite on the mark. Is the forum also thinking that Leigh Clifford will have to go? Any others?

Agree with some of the comments here that if the QF board can't sort the mess out soonish, it may be the shareholders or even administrators who take the matter into their own hands.

For all the bluster and spin - I did think that Alan Joyce actually did have a good case to make to relax/change the QF Sale Act to allow more foreign ownership as a partial proactive solution that the Federal Government could take, certainly not retrospective punishment to VA, at least we could get a level but competative playing field for the future.

But just about all the other problems (and there are lots) are attributable or could have been solved by the current QF management. As management spent so much time and effort rushing around on their pet projects, spinning against their competitors and the general tough state of life in the airline business and starting capacity wars that they can't finish - that they forgot to manage the important parts of the business with no foresight evident at all in the areas of hub selection/infrastructure upgrades, oneworld partnerships, growth opportunities, fleet planning, route choice, customer loyalty, management succession, employee relations, staff morale, overhead costs, the rise of asia, currency and fuel movements, how to solve their natural disadvantages and/or maximise their natural advantages etc etc

In hindsight QF management have been wrongfooted at nearly every turn and the diagnosis for management seems to be "too much short termism" and fighting fires and not enough long term planning.
 
Interesting discussion here, I am intruiged that 777 is possibly predicting the end of Alan Joyce's tenure at QF as a lot of 777's predictions often turn out to be quite on the mark. Is the forum also thinking that Leigh Clifford will have to go? Any others?

I have no particular insight but i can't see anyone coming in to save Qantas while AJ is still running it. He'll have to fall on his sword, surely? Clifford should take some responsibility also.

If Joyce manages to survive this the man is a genius. Shame it's genius in self preservation not in running an airline.
 
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My 3,655 QF LTSC means diddly squat ..... (not that it matters to me anymore as I decided a couple years back to not chase QF SC).

My guesses are:

QF will contract; focus on domestic operations with three international routes of to LAX, LHR, HKG. Maybe I might throw in FRA via SIN.

QF won't need as many A380's so just waiting for a fire sale which JQ will purchase them. I would then be really looking forward to when I can lie flat on a JQi all the way to HNL in Seat 1A. Maybe down the track I might be able to lie flat to a new route, like directly to LAS.

JQi will pick up the rest of the international business that QF will no longer fly.

JQi will continue using foreign labour and make it a survivable/competitive business.

If 3K HK gets approved, QF might dump flights to HKG and let JQi operate those sectors.

The QFFP might be devalued slightly, to give it slightly better 'accounting' figures.
 
In hindsight QF management have been wrongfooted at nearly every turn and the diagnosis for management seems to be "too much short termism" and fighting fires and not enough long term planning.

Or...its a very clever long term strategy to make QAN more vulnerable to the Private equity take-over. </remove tin foil hat>
 
We don't do major restructures well and seem incapable of stripping labour costs out of large unionised workforces without going down the redundancy and outsourcing path.
Probably should, but know very little on the subject of our alternatives to US Chapter 11 bankruptcy's enabling businesses to restructure their debts and continue trading. Even used by Councils to renege on their defined benefit pension schemes.
Don't recall many successes where our companies have gone into voluntary administration and come out close to whole the other end. Australian companies in financial trouble usually end up as a carcasse for accountants and lawyers to feed on.
Will be interesting to watch the trading performance of Air New Zealand over the coming months.
 
It's a shame they are complaining about lack of profits when we can't get the company representative to address concerns.

Either the company representative fails to see their strategic involvement, or they don't care.

Either way - allowing issues to fester without resolution means it is difficult to recommend passengers to fly Qantas international.

The biggest example is that of check-in agents being unaware of the interline requirements for baggage either on a single ticket, or between oneworld partners. Could I risk having my 80 year old parents connect through sydney and being told they need to collect their bags, take the train with those bags, and then re-check when they should have been through checked from the point of origin?

Of course i can't. Nor can I recommend anyone else to fly because of that problem.

Unfortunately the company representative hasn't followed up on earlier reports here to advise any action has been taken to correct this problem.

And it's not limited to that sole issue. There are several others.
 
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.

But then wait for all the whinging WP's to complain that because planes are full.. they don't get a shadow and empty seat next to them ;)
 
I have no particular insight but i can't see anyone coming in to save Qantas while AJ is still running it. He'll have to fall on his sword, surely? Clifford should take some responsibility also.

If Joyce manages to survive this the man is a genius. Shame it's genius in self preservation not in running an airline.
I agree. I think AJ's position has become untenable. He has had five years to bring/return QF to a position of strength and has seemingly yet to do so. The short term pain has become a recurring theme over the last few years.
 
I agree. I think AJ's position has become untenable. He has had five years to bring/return QF to a position of strength and has seemingly yet to do so. The short term pain has become a recurring theme over the last few years.

He must have some damn good pictures of some one some where. We are talking about a man who shuts down a National Airline rather than negotiate with in a constructive manner that created huge losses dare I say it probably more than it saved, has little regard for customers as he cuts back services and reduces the quality of onboard offerings. Fails to recognise and effectively grown the Asian business other than LCC Jetstar/3K Business, from whence he came. He has failed to react to competitiors moves other then predatory actions such as adding more and more capacity and reducing loads and Yields.

I ask my self how the hell is he still at the helm?

If it was a government he would have been tossed out by the voters and perhaps now its time for the voters, shareholders to vote him out.

Whinge over.

Give us back an airline that we can once again be proud of and happy to pay a small premium for :D
 
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My guesses are:

Maybe I might throw in FRA via SIN.

QF won't need as many A380's so just waiting for a fire sale which JQ will purchase them. I would then be really looking forward to when I can lie flat on a JQi all the way to HNL in Seat 1A. Maybe down the track I might be able to lie flat to a new route, like directly to LAS.

Are you being serious on these points?! There is no way they will recommence FRA as it was loss-making for a long time. If they keep the existing A380 routes of LHR, LAX and HKG they will not need any less A380s - they'll need exactly what they have now. Even if they didn't need them I highly doubt they would go to JQ - no LCC operates A380s.

I do think JQi will slowly take over most Asian destinations within the next few years - surely PVG, CGK, BKK and MNL are next on the chopping block?
 
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Are you being serious on these points?! There is no way they will recommence FRA as it was loss-making for a long time. If they keep the existing A380 routes of LHR, LAX and HKG they will not need any less A380s - they'll need exactly what they have now. Even if they didn't need them I highly doubt they would go to JQ - no LCC operates A380s.

I do think JQi will slowly take over most Asian destinations within the next few years - surely PVG, CGK, BKK and MNL are next on the chopping block?

PVG is the biggest commercial hub in China and only eclipsed in Asia by HKG and SIN. JQ is completely the wrong fit for the PVG market. Plus, I think PVG loads are pretty good.
 
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Plus, I think PVG loads are pretty good.

Not scientific or based on any legit data.....

I've noticed that it's now pretty easy to get 4+ J award seats to PVG.......not that long ago it was outright impossible. Would be interesting to see the numbers......
 
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So what's the feeling at this stage of the success or failure of the Emirates marriage? This was AJ's big play.
 
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So what's the feeling at this stage of the success or failure of the Emirates marriage? This was AJ's big play.

Given that it is still early Days I would say it is looking like a fail in my opinion. Not having any Asian connections direct from Asia to LHR and Europe is a Huge mistake in my opinion specially for Aussies stationed in Asia who now have no real destinations that they can use the points on nor buy QF tickets on with in Asia and Europe thus forcing them onto other airlines and possibley even other Alliances.

Speaking to a few people at Emirates they have indicated that it has been Huge success for them with a Net gain of customers from QF to EK.
 
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Given that it is still early Days I would say it is looking like a fail in my opinion. Not having any Asian connections direct from Asia to LHR and Europe is a Huge mistake in my opinion specially for Aussies stationed in Asia who now have no real destinations that they can use the points on nor buy QF tickets on with in Asia and Europe thus forcing them onto other airlines and possibley even other Alliances.

Speaking to a few people at Emirates they have indicated that it has been Huge success for them with a Net gain of customers from QF to EK.

This doesn't surprise me. I'm looking at flights for my family to come over and it was $7k flying on EK code, $10k flying on QF code on the same flights.
 
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Qantas still has a stock market value of 2,350,000,000 so do not write them off as it really is only Round One in a 12 Rounder. Qantas finished at 1.03 today. Virgin has a stock market value of 1,266,000,000 and have just had to do another emergency fund raiser at 38 cents to raise $350 million to cover their losses and tight cash flow position.
Both businesses are losing money so there will be changes at both companies.
 
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Given that it is still early Days I would say it is looking like a fail in my opinion. Not having any Asian connections direct from Asia to LHR and Europe is a Huge mistake in my opinion specially for Aussies stationed in Asia who now have no real destinations that they can use the points on nor buy QF tickets on with in Asia and Europe thus forcing them onto other airlines and possibley even other Alliances.

Speaking to a few people at Emirates they have indicated that it has been Huge success for them with a Net gain of customers from QF to EK.

+1....FWIW this customer didn't like it.
 
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