Long Haul Under Siege

[oz_mark]

I think it's just Joyce waving the 'scare' stick, i.e. saying "Unions you need to come to the (our) party", and "Government, we want you to help us (more)".

It seems to be a classic case of a CEO laying the groundwork for some bad news. I wouldn't like to predict what it is, but there must be some not very pretty numbers just around the corner.

 

[codash1099]

A little OTT, even for you.

I think it's just Joyce waving the 'scare' stick, i.e. saying "Unions you need to come to the (our) party", and "Government, we want you to help us (more)".

Ultimately, I do not see QF international product changing significantly (that's already happened with the considerable reduction to numbers of F seats on 747/A380) regardless of whether unions and/or gov't respond at all to this sort of statement.

I think the last sentence demonstrates QF's line of thought. To combat competition and improve profitability, QF are moving down market. Meanwhile, other carriers are either holding or improving their offering.

Either QF are very smart in going against the pack or..............................

 

[trippin_the_rift]

I think the last sentence demonstrates QF's line of thought. To combat competition and improve profitability, QF are moving down market. Meanwhile, other carriers are either holding or improving their offering.

Either QF are very smart in going against the pack or..............................

It's easier to compete on price and go down the LCC model. Now all Qantas needs is a CEO that is up to the challenge. Oh wait...

 

[JohnPhelan]

Perhaps in the future QF will consist of two large Domestic airlines (which make money) a rump QF international (A380 only) and all the rest given over to JQi?

Not while QF continues to make good profits out of J and full Y tickets on the major international - including and especially Asian -routes! JQi will only ever replace QF when QF mainline can't make a decent profit on any given route (a la SFO).

 

[Nigelinoz]

The way I read it when Alan Joyce said

If we continue on our current path, there will be a real question mark over the viability of Qantas International.
And I have no intention of letting our flagship business decay through lack of action. So we have set up a task force headed by one of our executives, Lesley Grant, to explore options that will invigorate the business, generate new and profitable markets, and protect our jobs and assets. Qantas is a great national and international airline. It is time we looked at opportunities to become a great global airline.

all he was doing was saying 'Our current international business model has become a bit stale in the face of competition from airlines like Emirates" so we are going to do something about it to revitalise our image as a quality airline'
So what is the big issue? isn't he doing what a good CEO should do every day?
Qantas has identified an issue with it's international business and is going to do something about it.
Bit of a media beat up if you ask me.
But then I'm not running Qantas.
Cheers
N'oz

 

[Sprucegoose]

Not while QF continues to make good profits out of J and full Y tickets on the major international - including and especially Asian -routes! JQi will only ever replace QF when QF mainline can't make a decent profit on any given route (a la SFO).

Let's hope that is the case.

I wont live long enough to appreciate a LCC........

 

[ethernet]

On AFF we already had this talk. what is wrong, what routes might work, which ones to dump.

They could post taskforce notes on facebook for public comment, and see if they get it.

 

[Awesom Andy]

In all honesty, I never believed long-haul or ultra-long-haul could ever make any economical sense. The longer the flight, the more fuel you have to carry on take-off, and when it gets to somewhat ridiculous range, arranging crew hours isn't going to be very much fun either. The A345 and 77L are pretty much just flying gas tanks, with a few pax on-board.

 

[Justchecking]

I honestly think the LH operation is suffering more from a complete and total focus on staffing costs by mgt, instead of an equal focus on service offering and hard product. I am not convinced the 777 would have saved them, but I am convinced having at least one eye on what the actual product looks and feels like compared to it's competitors would have. In the past 10yrs SQ, CX, EK and Co have all radically changed their onboard product, meanwhile the Aussies are still flying around the same old stuff thinking it's a competitive then wondering where their market share is going. Oh yeah A380s....that excitement lasted for 10mins. But what about the older planes that haven't seen so much as a cart exchange in a decade.