AJ Speech to American Chamber of Commerce - confirms 2800 Qantas job losses

[Mal Ware]

That is the most well reasoned post I have seen on AFF regarding AJ. Refreshing from all the Irishman and cough CEO talk, it actually analyses AJs philosophy an the actual value o the business.

Yeah it basically says he is an Irishman who is a cough CEO and who is destroying Qantas one step at a time, but without saying any of that word for word.

The shareholders, the travelling public and the staff will be left to clean up the mess he has created long after he retires to live the good life somewhere on massive coin.

 

[RWJ777]

Well, I hope history judges my comments incorrectly and we do see a Qantas brand still in existence.

Since Alan Joyce has taken over, International market share has dropped around 3 percentage points (only slightly above 18% now), and the share price has dropped over 30% (Virgin has gone up by 30%). Even the international market share of Jetstar is in decline. Customer satisfaction and employee satisfaction is at the lowest points in history. Yields on the domestic market are being squeezed whereas Virgin is advancing.

I am not being ignorant in my assessment of Alan Joyce. You cannot argue with facts.

All fair metrics to quote; however, I think what he is doing is leading transformational change. As much as many of us may dislike staffing (ie service) being stripped out of the airline, it's done with a long term view to reduce the escalating cost base. People want to travel on an airline paying first world plus salaries but paying fare prices comparable to airlines paying second word wages. It simply cannot sustain.

I'm a big fan of Joyce's. I think he's doing what many others haven't had the guts to do. It would be pretty easy to roll over and allow the unions to continue to extract unrealistic wages and conditions from the business but he's tackled it head-on despite the benefit not accruing for years (and the PR disaster applying immediately).

Thats why the short term metrics you've quoted, which are disappointing to be sure, are I think only the beginning of this story.

 

[muppet]

All fair metrics to quote; however, I think what he is doing is leading transformational change. As much as many of us may dislike staffing (ie service) being stripped out of the airline, it's done with a long term view to reduce the escalating cost base. People want to travel on an airline paying first world plus salaries but paying fare prices comparable to airlines paying second word wages. It simply cannot sustain.

I'm a big fan of Joyce's. I think he's doing what many others haven't had the guts to do. It would be pretty easy to roll over and allow the unions to continue to extract unrealistic wages and conditions from the business but he's tackled it head-on despite the benefit not accruing for years (and the PR disaster applying immediately).

Thats why the short term metrics you've quoted, which are disappointing to be sure, are I think only the beginning of this story.

Once he's killed QF, there'll be nothing left. JQ won't have a good QF brand to prop it up in terms of QFF customers, cheap debt, cheap efficient planes and a free go at QF dominated airports.

He has forced his one eyed loyal customers to look for options - and anyone who knows anything/nothing about sales says it costs heaps more to get a new customer than to keep an existing customer.

 

[RWJ777]

Yeah it basically says he is an Irishman who is a cough CEO and who is destroying Qantas one step at a time, but without saying any of that word for word.

The shareholders, the travelling public and the staff will be left to clean up the mess he has created long after he retires to live the good life somewhere on massive coin.

Is it really necessary to refer to his nationality? After all the guy's an Australian citizen. And even if he were only a resident, I really don't see that as being in any way relevant to how he's leading the airline.

 

[Mal Ware]

Is it really necessary to refer to his nationality? After all the guy's an Australian citizen. And even if he were only a resident, I really don't see that as being in any way relevant to how he's leading the airline.

If I could go and live in China and get citizenship, would that make me Chinese?

And it is relevant because he has not grown up with the Qantas brand, you think if someone spends a few years here and has a piece of paper that says they're "Australian" it gives them the right to destroy an Australian Icon that was here long before he was?

 

[whatmeworry]

His background is relevant, as he was present (as a part of Aer Lingus) when Ryanair entered the Irish market and then later the EU market. As a result of this, Aer Lingus went downhill in terms of service to compete with Ryanair. Slowly we are seeing Qantas go downhill and guess who is at the helm?

 

[nlagalle]

If I could go and live in China and get citizenship, would that make me Chinese?

And it is relevant because he has not grown up with the Qantas brand, you think if someone spends a few years here and has a piece of paper that says they're "Australian" it gives them the right to destroy an Australian Icon that was here long before he was?

Actually it would make you Chinese as you gave up your Australian citizenship..

So you only know the Qantas brand if you grew up in Australia? C'mon what a load of BS.. And can you say he is definitely destroying it? or more that you don't like the way it's being changed? I'll wager now the Qantas brand will still be around (and not just as the orange cancer). I'll also wager Alan is a hell of a lot smarter than you or I.

 

[nlagalle]

His background is relevant, as he was present (as a part of Aer Lingus) when Ryanair entered the Irish market and then later the EU market. As a result of this, Aer Lingus went downhill in terms of service to compete with Ryanair. Slowly we are seeing Qantas go downhill and guess who is at the helm?

firstly he wasn't head of Aer Lingus, and secondly he left in 1996 well before RyanAir started aggressively competing against them. So his background isn't that relevant.

 

[RWJ777]

If I could go and live in China and get citizenship, would that make me Chinese?

And it is relevant because he has not grown up with the Qantas brand, you think if someone spends a few years here and has a piece of paper that says they're "Australian" it gives them the right to destroy an Australian Icon that was here long before he was?

What a lot of rot. I haven't heard views like that since I was a kid growing up in the suburbs. Goodness.

What you're saying is that having been born overseas he is disqualified from running the organisation because he can't culturally relate to it. Should that also be the case for all foreigners -- where's the boundary? CEO, senior exec, senior manager?? Or is it just culturally significant companies in which foreigners can't work for a lack of culturally empathy? And what's the definition of cultural significance? Who judges that?

Far more relevant to criticise his history in other organisations than his nationality. It smacks of xenophobia. And it is so insular: our country was built on the toil and innovation of people from overseas.

 

[muppet]

.....I'll also wager Alan is a hell of a lot smarter than you or I.

Fairly awkward.... AJ is smarter than you?

 

[nlagalle]

Fairly awkward.... AJ is smarter than you?

The guy holds degrees in Maths and Science, so yes, he's a lot smarter than I am. Having met him before I can tell you he is incredibly smart.

 

[muppet]

The guy holds degrees in Maths and Science, so yes, he's a lot smarter than I am. Having met him before I can tell you he is incredibly smart.

I haven't met him. But I've heard him speak many times - he has nothing of intelligence to say. In fact he often sounds dyslexic (I know that isn't exactly related to intelligence but you have to be able to communicate.)

Maths may have been useful during his time in yield management, and I definitely believe managers with finance and math are valuable, but he doesn't manage well and he definitely doesn't lead.

By the way - everyone has degrees.

 

[whatmeworry]

firstly he wasn't head of Aer Lingus, and secondly he left in 1996 well before RyanAir started aggressively competing against them. So his background isn't that relevant.

Obviously you never bothered to read my post properly, as I never said he was the head of Aer Lingus. He might have left in 96, but he comes from a breeding grounding that has bred many a Irish airline exec that learnt a lesson or two from Ryanair and the subsequent race down to the lowest denominator in terms of airline service in order lower a airline's costs.

 

[nlagalle]

I haven't met him. But I've heard him speak many times - he has nothing of intelligence to say. In fact he often sounds dyslexic (I know that isn't exactly related to intelligence but you have to be able to communicate.)

Maths may have been useful during his time in yield management, and I definitely believe managers with finance and math are valuable, but he doesn't manage well and he definitely doesn't lead.

By the way - everyone has degrees.

You could say the same about Kevin Rudd and the way he speaks too.. the term "ruddese" comes to mind.

oh and not everyone has degrees.. I don't have one..

 

[nlagalle]

Obviously you never bothered to read my post properly, as I never said he was the head of Aer Lingus. He might have left in 96, but he comes from a breeding grounding that has bred many a Irish airline exec that learnt a lesson or two from Ryanair and the subsequent race down to the lowest denominator in terms of airline service in order lower a airline's costs.

Oh i read your post properly. was pointing it out as many times before on this board people thought he was the head. And you basis for comment about Irish airline execs? yes they have produced a larger number of airline execs but I don't see where they all race to destroy service etc as you state.

A great deal of the problems QF have now is thanks to Geoff Dixon who was only interested in selling it off. Oh and he's born and bread Australian too, what does that say about growing up with the culture of the airline???

 

[amaroo]

Setting up an airline from scratch & have it making money from the get go - is a pretty good sign the man knows what he is doing.

AFF seems to be full of experts - I wonder how many have actually created & run an airline:?:

 

[RWJ777]

Setting up an airline from scratch & have it making money from the get go - is a pretty good sign the man knows what he is doing.

AFF seems to be full of experts - I wonder how many have actually created & run an airline:?:

Well said.

 

[medhead]

Setting up an airline from scratch & have it making money from the get go - is a pretty good sign the man knows what he is doing.

Jetstar? If so, I dare say it is easy to successful setup an airline when the market is handed to you on a platter.


Sent from the Throne

 

[straitman]

Setting up an airline from scratch & have it making money from the get go - is a pretty good sign the man knows what he is doing.

AFF seems to be full of experts - I wonder how many have actually created & run an airline:?:

Or at the very least prepared and worked through a business plan for an airline.

It is not quite as easy as some might like to imagine.

 

[777]

AFF seems to be full of experts - I wonder how many have actually created & run an airline:?:

Most of us have managed to not massively destroy the value of the things we have been given the chance to run, control or manage. So we are mostly way ahead of Joyce on that front.