How can QFi not be making any money? packed flights to the UK

[dajop]

Eventually we will get QFi lite (Nearly there) as routes have been stripped back and reinvestment is funnelled into JQ. At some point QFi and JQ will be merged or JQ spun off to take over QFi and we will all be flying the Orange Kangaroo!

Except the A380s. They will retain J, Y+ and 30 Y seats upstairs operating under the QF brand by QF pilots. F will be removed and converted to Jetstar "Business" and a few extra rows of Y thrown in and downstairs crewed and branded as Jetstar.

 

[dukkha]

Holy misinformed stereotyping, batman! :shock:

Wage increased a lot now to USD$130 per month, slightly more than my taxi ride from airport to home.

Suicides at Foxconn: Light and death | The Economist

Mr. Joyce will be delighted to have 800,000 such willing workers that give QAN a competitive edge.

 

[simongr]

Wage increased a lot now to USD$130 per month, slightly more than my taxi ride from airport to home.

Suicides at Foxconn: Light and death | The Economist

Mr. Joyce will be delighted to have 800,000 such willing workers that give QAN a competitive edge.

Are any foxconn employees employed in the airline business?

 

[dukkha]

Are any foxconn employees employed in the airline business?

The figure is indicative, only airline has specific salary range; however the difference is significant from countries to countries. But just as salary of Australian manufacturing and service industry does not vary too much, so too, the salary of Asian manufacturing and service industry does not vary too much.

As discussed, 20% of airline expense is labour cost, a 5% reduction of which will double airline profit from 1% to 2% (20% x 5%=1%). Any capitalist will be delighted to have such a competitive edge by any measure.

 

[11sjw]

Bad management?

Poor fleet maintenance?

Too many overheads?

Crippling union involvement?

Limited route structure?

Cooking the books.....

Exactly, dodgy accounting eg. shuffling Deathstar costs into the QFi ledger.

 

[amaroo]

Are any foxconn employees employed in the airline business?

Maybe, according to the recent Senate inquiry, closely followed by the recent FWA decision against J*

 

[kezsco]

yes, the flights are packed for the time that you indicated. FWIW, I am travelling SYD to LHR on June 29, first day of the school holidays. I am returning 3 days after the end of school holidays and from FRA because that's when the price drops off and there are seats. You indicated that you were looking at flights at the same time.

2 week school holidays absolutely kills availability on QF flights out of Sydney to LHR.

If you look at flights 3 months later (and not in Spring school holidays break), then you will find the flights are cheaper and loads are less.

 

[dukkha]

This is a better answer to the OP:
Cheaper labour cost makes a difference. Chinese airline made half of global profit last year that forces other airlines to lower their price to compete which further reduces the profit.

The global industry’s after-tax profits are forecast to fall from $7.9 billion in 2011 to $3 billion this year; that is just 0.5% of revenue (see chart).

Aviation: Ghost at the feast | The Economist

Similar to Ansett's collapse a decade ago, every body is bleeding. A split of QAN and QNi will not make the airline industry or QAN as a whole more profitable.

 

[Supersonic Swinger]

Eventually we will get QFi lite (Nearly there) as routes have been stripped back and reinvestment is funnelled into JQ. At some point QFi and JQ will be merged or JQ spun off to take over QFi and we will all be flying the Orange Kangaroo!

If the first part of your sentence ends up being correct, the second is definitely wrong - I for one will never be flying the Orange Kangaroo.

 

[Katie]

yes, the flights are packed for the time that you indicated. FWIW, I am travelling SYD to LHR on June 29, first day of the school holidays. I am returning 3 days after the end of school holidays and from FRA because that's when the price drops off and there are seats. You indicated that you were looking at flights at the same time.

2 week school holidays absolutely kills availability on QF flights out of Sydney to LHR.

If you look at flights 3 months later (and not in Spring school holidays break), then you will find the flights are cheaper and loads are less.

Qld public schools started holidays on 22 June, so there would also be a flow-on effect from QLD school families travelling last week.

 

[dajop]

This is a better answer to the OP:
Cheaper labour cost makes a difference. Chinese airline made half of global profit last year that forces other airlines to lower their price to compete which further reduces the profit.

I think this is, at best, an oversimplification. I suspect the Chinese airlines are making most of their profit through the domestic China market (and perhaps China originating pax) which is huge, and mile for mile not that cheap, and they have no foreign competitors in this market. I don't think we've yet felt their full impact internationally yet - they are slowly expanding, but they do tend to undercut most rivals. Fuel prices and weak demand would surely be a much bigger factor when it comes to the global scene.

 

[Ubu]

Yeah all those things are true about costs and subsidies, but the main reasons fewer people fly QF are price, quality of service and destinations. They fly to London and Frankfurt only in Europe. I used FF points to go to Vienna 2 years ago and went via London. Why would I do that if I was paying? It makes more sense to go with Japan, Korean, Austrian, Emirates or Etihad. Then there is price for business class. It's a joke to charge twice many other airlines for essentially the same thing without something extra. Yeah right. Lastly service: who hasn't had the QF economy experience where flight attendants hide for hours or treat you like cough. I've spent all my QF points and will never fly them again where I have a choice.

 

[thatwouldbher]

I don't believe they aren't making any money, Qantas is the most expensive airline in the world!!! Very high fuel surcharges, fares higher than other airlines doing same route, and a greedy CEO that gets 5 million salary plus bonuses on profit. I say get rid of Alan Joyce.. Then airline would run smoother.. Qantas was fine till he took over... & will be after he as gone.. For as long as he s CEO I will not travel Qantas. Service by cabin crew is the worst it as ever been... Qantas still owes me over $500 from 4 years ago, it appears I will never get it now!!!

 

[Ubu]

Rubbish. It's not Alan Joyce. it has been cough since it swallowed TAA.

 

[Mike-downunder]

Get rid of Allan Joyce and his high-flying plans in Asia

 

[SeatBackForward]

Get rid of Allan Joyce and his high-flying plans in Asia

the wrong Asian plans...

 

[James1959]

It is funny. I had 24 years in the travel and tourism industry and Qantas always whinged. Make no mistake, I am a proud Australian and use Qantas 99% of the time. They just make it harder and harder.

Remuneration for management seems to be disconnected from customer satisfaction and only thrives on satisfying shareholders. Keep that approach and you on't have passengers - just shareholders!!!

I love the Qantas staff and that it is truly Australian. It's time management got into the Spirit (not Spririts).

Be fair dinkum! Get back to having pride about on time performance, best staff, best facilities.

Alan Joyce has lead Qantad back to best whinging!! So sad.

Geoff Dixon, come on back and show an Irishman how it's done properly.

 

[greglow]

I suspect that their biggest problem is that many, many business travellers have now given up on them. My wife and I (both QF Platinum) are good examples of that.

When I used to occasionally get a Virgin flight, it always looked like a backpacker airline. Now it's full of business people. There has been a major change. And having seen the difference, I can't imagine ever going back unless something substantial changes.

It's not just Alan Joyce to blame. The staff need to look in a mirror for the real problems.

But the airline itself is stupidly arrogant. We haven't even had a single call asking what happened. If I had customers that have been purchasing from me twice a week for 7 years and they stopped buying in November last year, I doubt it would take me till now to wonder why.

 

[Mike-downunder]

the wrong Asian plans...

You are absolutely correct with 'wrong'

 

[pearler47]

Melbourne people nowdon't get much opportunity to fly Qantas international; we get shoved onto Jetstar.