Qantas Downgrade

[eastwest101]

Yep I realise that. But if I were paying for J fares I would find it pretty hard to get all excited about an old JQ "hand me down" A330 with the 2-3-2 J configuration (and yes before you reply - I know the VA A330's aren't any better).

Sorry - didn't see the notification of QF capacity cuts - will go and have a look for them now. But I think cutting capacity just invites your competition to come in and eat your lunch.

 

[simongr]

Yep I realise that. But if I were paying for J fares I would find it pretty hard to get all excited about an old JQ "hand me down" A330 with the 2-3-2 J configuration (and yes before you reply - I know the VA A330's aren't any better)

Why would it be a 2-3-2 config given that current new fit outs of domestic A3xx have a 2-2-2 fit out (albeit that the 2 in the middle have a blanked out seat between them)?

 

[markis10]

Why would it be a 2-3-2 config given that current new fit outs of domestic A3xx have a 2-2-2 fit out (albeit that the 2 in the middle have a blanked out seat between them)?

QF have stated that the current A332 JQ planes are in shared config, so they won't change, although I expect they may once the VA 2-2-2 config flys in a few months time.

 

[markis10]

Yep I realise that. But if I were paying for J fares I would find it pretty hard to get all excited about an old JQ "hand me down" A330 with the 2-3-2 J configuration (and yes before you reply - I know the VA A330's aren't any better).

Sorry - didn't see the notification of QF capacity cuts - will go and have a look for them now. But I think cutting capacity just invites your competition to come in and eat your lunch.

Considering they have just taken delivery of some new ones, they won't be that old, three last year, Q, R & S.

 

[simongr]

QF have stated that the current A332 JQ planes are in shared config, so they won't change, although I expect they may once the VA 2-2-2 config flys in a few months time.

So they will be like the current QF A3xx and the middle seat wont be used perhaps?

 

[anat0l]

What have they done to jeopardise the rating given that the rationale for the downgrade was the rise of fuel prices.

This seems really, really odd. The article is certainly not complete in context but it does make it sound like the environment has changed significantly to the tune that QF could not almost have conceivably avoided the downgrade.

In fact, the article only then goes on to say that S&P have downgraded QF due to what they saw as "reputational damage" and "loss of customers to rivals".

And just to ask on your other points:

777 - In hindsight taking the A380 over the 777 was not a great move given the delays to the A380 coupled with the global crash that happened just as the big birds actually started to be delivered.

Agreed on these - the armchair "experts" are no better than Moody or Standards Are Poor - two rating agencies who knowingly contributed to the financial crisis of late (and whose contributors and employees also somehow managed to side step being convicted of white collar crimes).

To attempt to profit into one's integrity by purely using hindsight and circumstance is poor form. That's not to say that QF may have made the wrong decision (and indeed, they probably did, though did they really make the wrong decision at the time given reasonable circumstances).

 

[markis10]

As for the "AJ/Board Fail", I'm not convinced that JB was simply "lost" to DJ. JB did go, but he on his volition decided to take on DJ as a challenge (and why not? It sounds appetising enough). It's not as if DJ actively went out and poached the man with a sack and a ransom.
.

DJ did not need to poach JB, he was unemployed before they started looking having left QF the year prior to taking the DJ job, QF lost him after he was passed over for the top job.

 

[simongr]

Also, who the hell was not supporting those death threats against AJ before... to say that you don't and yet vehemently want to actively see the end of AJ is hypocrisy.

Not sure if that was targetted at me. I do not recall supporting the death threats but I equally would like to see the end of his tenure as CEO of QF rather than the end of him as a person.

 

[medhead]

Also, who the hell was not supporting those death threats against AJ before... to say that you don't and yet vehemently want to actively see the end of AJ is hypocrisy.

Hey? Wanting someone out of their job because they are seen as not up to standard is not a suggestion to kill someone. It is hard to see how they are in any way comparable.


Sent from the Throne (80% chance) using Aust Freq Fly app

 

[straitman]

Let's get back to the guts of the topic and forget this evil twist. PLEASE.

 

[anat0l]

To get back to the main stream as it were, I still contend it is unfortunate that the apparent financial states of companies (any company for that matter, not just Qantas, keeping in mind that 3 of the world's airlines are only at "investment-grade" as it were) is being ranked according to two or so companies with false authority.

What about any of the other popular airlines around the world? Virgin Australia for that matter? Or are many of the airlines around the world excluded as they are not public companies?

 

[simongr]

Isn't the credit rating applied to the debt that they are offering rather than a measure of pure financial performance/share value.

 

[anat0l]

Isn't the credit rating applied to the debt that they are offering rather than a measure of pure financial performance/share value.

But the propensity for that debt to be viable or not must be heavily tied to the financial performance (resilience, standard, whatever) of the company, since it is ultimately the financial assets and capacity that will service the debt (and further then give confidence to other lenders that the said company is capable of accepting and servicing debt).

It's not a replacement or de facto measure, but it's still heavily coupled IMO.


Note I am not someone with a finance background so this is mostly all supposition.

 

[maninblack]

Was bound to happen sooner or later!

How are they financing the 110 x A320's again................. :shock: ?

What's happened to the "premium airline" in Asia ?

Qantas slowly but surely being run further and further into the ground!

Sad times

No 777 - Fail
Lack of investment in their cabins - Fail
AJ (well the board really) - Fail

And what about the previous board. Uh-oh