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Australian Financial Review article on Qantas, 11/12/04

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HardieBoys

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Article on page 17, by Narelle Hooper.

The basic thrust of the article is that cost-cutting is pleasing Qantas shareholders, but alienating Qantas customers. Sources include www.frequentlflyer.com.au, QF staff, QF's CFO (Peter Gregg), and QF GM (John Borghetti). Mention is made of cost-cutting from food and beverages, and the recent changes to the frequent flyer programme are discussed. Jetstar, Jetstar Asia, and Qantas's approach to IR law in Australia are also raised. The article also recalls Geoff Dixon's letter to the AFR dumping on QF customers from Hamilton Island who complained that their QF service was being replaced with Jetstar.

I'll end with a quote taken from the conclusion of the article: "The end result is that Qantas, the brand we all love to love, is becoming a shrinking icon."
 

HardieBoys

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Sorry, I forgot to add the last bit of my post:

What do people think of the 'shareholders' interests versus customers' interests' argument?
 

kpc

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thadocta said:
Whilst I as a Gold FF am not happy with the changes - in fact, I am royally pi55ed off with them - I as a shareholder am quite happy.

Dave
I was at lunch and bought the AFR to read...interesting article...although the frequent flyer changes were mentioned in the article (and the above was quoted in the article minus the desriptive "pi55ed" :), it was really about the cost cutting that QF had undertaken in recent times (Junkstar, service issues like insufficient meals, even in the premium clasees, seats and IFE not working etc ) so QF staff call it the "Apology Airlines" as they are sick of saying "I'm sorry sir...we have run out of meals"!! :shock: ...although senior QF mangement claim NEVER to have heard that term before. On the positive side :!: , the QF share price has risen significantly even in these tough aviation times...so the thadocta has got it pretty much summed up with his now famous quote!
 
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