I disagree. It sounds like very prudent management, to make decisions based on the most up-to-date situation.Probably shouldn't have gone around making big promises before doing the sums. Doesn't sound like prudent long-term management to me.
I am happy to take that challenge...I think anyone who wants to doubt AJ's skills at management should take a look at the QF share price in recent years. I think that share price is a far more accurate comment on his management skills than many opinions around here
Plus a few $bn in share buybacks.I am happy to take that challenge...
The share price has risen due to -
A big reduction in jet fuel prices without a significant reduction in fuel surcharges.
A $2B+ write down in asset values.
The termination of the domestic capacity war that QF was fuelling.
A very financially weak competitor in the domestic market (where almost all of their profit is made).
A very sticky, very compliant customer base.
A general recovery of the economy since the GFC.
A direct line to highest level of all Governments who will kowtow to any 'request'.
Almost anyone could make money under these conditions, given QF had more than 70% market share (and higher in the business market). The question is could have someone else done better?
VA did not have any of the aforementioned (mostly external) benefits to help their share price.
Jeez - maybe this needs a separate thread! I am acutely aware that the share price was in the doldrums for a few years after AJ took the helm. Instead of using that against him, may I offer you an alternative interpretation of that? Essentially AJ took the reigns when Qantas was heading into oblivion. He made hard choices, inspired changes, but in such a large company these obviously take a few years to change things. Rather than try to use those early years against him, maybe try to recognize that he held fast with his ideas in a very difficult phase for Qantas and managed to give it an absolutely huge turn-around.VA did not have any of the aforementioned (mostly external) benefits to help their share price.
Also, QAN share price was ~$6.30 in October 2007 and had dropped to ~$2.50 in November 2008 when AJ took over. He let it drop to under $1.00 during his tenure. Share buybacks have significantly reduced the number of shares on offer, artificially inflating the share price today. QAN did not pay any dividend for a number of years.
QAN as a business today is still not worth more than it was worth in 2007 and is essentially the same or even larger than it was.
I argue that anyone could have done what AJ has done as QF CEO (or even better).
I agree that this is a discussion for another day (and thread). I just wanted to rebut your initial statement by highlighting that the QAN share price has been largely affected by numerous external factors that have little to do with the management of QF by AJ....Jeez - maybe this needs a separate thread! I am acutely aware that the share price was in the doldrums for a few years after AJ took the helm. Instead of using that against him, may I offer you an alternative interpretation of that? Essentially AJ took the reigns when Qantas was heading into oblivion. He made hard choices, inspired changes, but in such a large company these obviously take a few years to change things. Rather than try to use those early years against him, maybe try to recognize that he held fast with his ideas in a very difficult phase for Qantas and managed to give it an absolutely huge turn-around.
Can you share what you think he did wrong? What would have been better for the company? I am not an expert in these things. Qantas has two battlefronts - international and domestic. It appears to me that on the international front they have recovered from doom to have a chance at success. On the domestic front they are literally wiping their behind with the competition. And as a third (and very important part) their loyalty program is doing absolutely phenomenally well.
These comments of mine are about Qantas as a company and AJ's achievements as the head of this. I am not a share holder. I have sufferred the harshness of the cuts and "enhancements" and actually became disillusioned enough with them to stop flying them this year. But I still respect that AJ has taken a company in a cutthroat industry and kept it alive and thriving.
I’m not going to rubbish people.... (oh wait I will anyway ) that seem to think that anything that appears in mainstream media via a PR release that is designed to keep the company top of mind and in the media is a ‘promise’.I am not going to rubbish people such as @Himeno or @DavidFlynn who choose to believe what Alan Joyce says at pressers.
Although I wonder if they still expect a dormitory under the decks on the project sunrise aircraft.
But I don't think it is entirely unreasonable of me to be cynical given the B789 layout.
Yes as @moa999 points out the B789 is smaller than the B777X.
But airlines such as Etihad have had F cabins on smaller aircraft.
With Qantas' record of over promising and under delivering, I won't believe it until it happens.
Boeing’s 777X strategy of -9s now, -8s later is very smart and if Boeing wins over Airbus is reckon this would be what sealed the deal. Qantas is also in a very good spot because it holds orders and options on the 787 going back to launch, so those would be listed at phenomenally cheap prices. Qantas could convert some of those orders to the 777X and Boeing would be very happy with that arrangement.But Boeing would need to be giving Qantas a very good deal to offset all the extra fuel that would be burnt in the meantime lugging around overweight aircraft.
Would they convert though?Qantas could convert some of those orders to the 777X and Boeing would be very happy with that arrangement.
I think they are after the repeat business (in the premium cabins at least). Once you go ULH once, you don't look back, at least in the F, J and possibly even Y+ cabins. Y pax will either love or hate it, most likely the latter, depending on whether the magic number is 32 or 35.Thinking about this, I would not pay a premium to fly Syd-Lhr non stop over a 1 stop flight even if it saved me 3-4 hours...I suspect Qf realises that a lot of pax would feel the same way....so the economics of carrying the extra fuel are critical to the success of the non stop flights.