Qantas results 28Aug .

[dk4]

Personally, I think that QFi needs to reverse its HR strategy from "high pay, low turn over" to "low pay, high turn over".

And that to achieve this it may be necessary to move QFi's capital over to Jetstar, and get Jetstar staff to operate the Qantas international brand (to Qantas service standards).

 

[JohnK]

By announcing a similar 20% wage cut for senior QF management.

I am not convinced senior management is adding any value to Qantas. A 50% wage cut would be more appropriate.

 

[cmon0005]

Has anyone else noticed it has been much quieter in the media leading up to this weeks results announcement than it has in previous years?
Don't know what to make of it..

 

[raleyoz]

Has anyone else noticed it has been much quieter in the media leading up to this weeks results announcement than it has in previous years?
Don't know what to make of it..

I suspect neither do they

 

[Birdblack]

There's no one left to do the leaking

 

[moa999]

The wishlist that isn't going to happen.

- Secretly been rolling out the new seats on a couple of A330 that go into service today, rest to be completed by mid-2015 (pull forward of timetable)

- We agreed today a new agreement for pilots and FAs on a Qantas 787-9, have received ETOPS 330, and so today announced the conversion of 12-15 of our options to firm orders to be delivered from mid-2015 through 2016 enabling the retirement of all 747s by end 2016. We retain options over further 787s. Our 787s will have the new J product, PE and Economy.

- We have struck agreements with Emirates, AA, BA and IB to enable you to use QFF points to upgrade when flying on their metal

and the most unlikely one

- We today announced approval of Jetstar Hong Kong !

 

[RAM]

The wishlist that isn't going to happen.

- Secretly been rolling out the new seats on a couple of A330 that go into service today, rest to be completed by mid-2015 (pull forward of timetable)

- We agreed today a new agreement for pilots and FAs on a Qantas 787-9, have received ETOPS 330, and so today announced the conversion of 12-15 of our options to firm orders to be delivered from mid-2015 through 2016 enabling the retirement of all 747s by end 2016. We retain options over further 787s. Our 787s will have the new J product, PE and Economy.

- We have struck agreements with Emirates, AA, BA and IB to enable you to use QFF points to upgrade when flying on their metal

and the most unlikely one

- We today announced approval of Jetstar Hong Kong !

I think you may have pressed the 'Post' button too quickly and missed....

The remaining members of the Board would like to thank Alan Joyce, his deputies, the Chairman and Deputy Chairman of the board together with the other four board members who are stepping down from their positions at today's meeting. We would like to thank them for their efforts over the last six years {but unfortunately no right minded individual could - Legal to confirm wording}. Instead we thank them for their eagerness to see Qantas launch into a new era post their much-delayed departures. We wish them well in finding new positions, perhaps with Emirates who has flourished over the last four years especially.....

It is with much excitement the Board also announces the intention to take up the offer of XFDV Leasing for the leasing of 15 new B777-300s initially on a wet-hire basis fitted out with our next-generation seating across the four seat classes. These planes will replace all current QI craft that are 10 years or older until we start to receive our converted option B787-9s.

The oldest aircraft will be phased out first leading to an immediate additional 9% operational status PA gain as maintenance and incidental down time is significantly less with these new airframes. Additionally the near 200% increase in premium air cargo capacity provided by the B777-300 coupled with the 18% lower fuel burn per seat should see QI's margins quadruple based on both current load factors and avgas prices once we have the 15 leased aircraft in operation.

The first aircraft is to be retired on 18 October 2014. The City of Canberra, entered our fleet on 11 Aug 1989 and having just passed its 25th birthday has served Qantas well. The second aircraft, the Longreach, entered our fleet on 21 Dec 1990 will be retired on 1 November 2014 having served us for nearly 24 years. The remaining 13 B777-300s will enter into service every two weeks through to May 2015 and remain in use until all B787-9s enter service.

We hope you will join us in this forward step for Qantas and our loyal supporters - customers and staff combined....

"I have a dream."

 

[amaroo]

The analyst - wish list Qantas urged to cut thousands more jobs

Qantas is being urged to cut thousands more jobs and jettison a majority of its international routes as the company faces the most turbulent period in its 94-year history.

 

[Mr_Orange]

The analyst - wish list Qantas urged to cut thousands more jobs

Qantas is being urged to cut thousands more jobs and jettison a majority of its international routes as the company faces the most turbulent period in its 94-year history.

So Mr Hansford is advocating cutting some of QFi's most profitable routes!!

 

[amaroo]

So Mr Hansford is advocating cutting some of QFi's most profitable routes!!

My guess - some of the analysts would like to see QFd, J* and not much else...

 

[Melburnian1]

While not previously announced as 'to be cut', is it possible that the orange cancer will replace QFi within a year depending on aircraft availability on routes such as SYD - Noumea, SYD - MNL, SYD - BKK, MEL - SIN, BNE - SIN and even across the Tasman despite Jetconnect running those flights? Or just abandonment of some routes?

The few media articles that I have seen quote analysts as struggling to see where more than about A$600 million of the supposed 'A$2 billion' in cost savings will come from.

One media article suggesting that a call in centre had been established for QFi staff implied savage cuts: more immediate redundancies?

I agree with amaroo's comment above about the analysts.

 

[The Rok]

Is it too far fetched to suggest that AJ will depart and instead take up a role with MH to implement similar changes there?

 

[Mr_Orange]

While not previously announced as 'to be cut', is it possible that the orange cancer will replace QFi within a year depending on aircraft availability on routes such as SYD - Noumea, SYD - MNL, SYD - BKK, MEL - SIN, BNE - SIN and even across the Tasman despite Jetconnect running those flights?

If this happens, it will be as a direct result of the stupid EK deal.

 

[smit0847]

I really don't think the results will be that interesting, good or bad.

- unprecedented competition from overseas carriers;
- challenging conditions;
- difficult decisions to be made;
- rising fuel prices;
- weak Australian dollar;
- restrictive ownership conditions;
- unlevel playing field;
- high costs;
- large loss for both QFi and JQi;
- EK strategy 'saving' Europe;
- A330 refurb will save Asia and provide worlds best domestic J;
- increased services to the Americas;
- QFF record profits;
- JQ HKG progressing despite local objections and competition;
- 787s working well for JQ;
- increased staff engagement and morale;
- more Australians flying QFi than 12 months ago;
- JQi competing against stiff competition in LCC space;
- increased aircraft utilisation;
- accelerated aircraft retirement to rejuvenate fleet;
- Oneworld worlds best alliance;
- 3K competing against stiff competition in LCC space;
- increased codeshares to China;
- Sydney connect the next big growth area;
- no fleet planning;
- everyone elses fault but the board and CEO;
- blah, blah, blah, same old same old.

I don't think any routes will go from QFi to JQi. I think CGK and MNL are safe for now.

QFi's failure to fleet plan is going to become an increasing problem for long-haul in the years to come. They can't retire 747s with nothing to replace them and grow any services or destinations at the same time. I would be making all Asian routes refurbed A330 ASAP (it works for CX) to ensure product consistency. This will leave the A380s and 747s for long-haul (again, product consistency). Surely the goal is to grow the second MEL-LAX as well as SYD-SCL to daily? Then they would consider BNE-DFW next? How do they expect to do that by retiring 747s?

They seem to have a real chance to grow across the pacific here but with no new aircraft on the way (I dont expect to ever see a B787 in QF colours or any new A380s) they are shooting themselves in the foot.

I would expect the results announcement not to address this little issue.

 

[Awesom Andy]

I guess the 747s can't go anywhere until they can find something to replace them for SCL and JNB as these routes still pretty much require 4 engines (due to CASA requirements) and the A380 is too big for these routes. The ERs are only mid-life as well, so they're probably worth keeping for a little while longer. Not sure if it would work if the 747 fleet is reduced to just the 6x ERs, although that would probably mean missing a couple of rotations every week to JNB and SCL - I suspect they still want to have a 747 doing the BNE-LAX-JFK runs. The A380 fleet is pretty much sorted as it is, flying to the UK and US exclusively. All Asian destinations should have A330s, and probably increase SYD-HKG to twice daily and potentially act as a feed for the SYD-SCL sector.

 

[RAM]

Is it too far fetched to suggest that AJ will depart and instead take up a role with MH to implement similar changes there?

Absolutely too-far-fetched. Like winning lotto.

But I would really categorise it as:

TOO HOPEFUL.

 

[smit0847]

I guess the 747s can't go anywhere until they can find something to replace them for SCL and JNB as these routes still pretty much require 4 engines (due to CASA requirements) and the A380 is too big for these routes. The ERs are only mid-life as well, so they're probably worth keeping for a little while longer. Not sure if it would work if the 747 fleet is reduced to just the 6x ERs, although that would probably mean missing a couple of rotations every week to JNB and SCL - I suspect they still want to have a 747 doing the BNE-LAX-JFK runs. The A380 fleet is pretty much sorted as it is, flying to the UK and US exclusively. All Asian destinations should have A330s, and probably increase SYD-HKG to twice daily and potentially act as a feed for the SYD-SCL sector.

I'm not expecting the 747s to go while they have these routes. The problem is that they cannot grow any routes or frequencies to the Americas without more planes.

 

[love_the_life]

Interesting that Senator Xenophon is on the ABC now discussing shareholders and the performance of the board, in particular its rosy reports of the recent past compared with the latest abysmal performance. He is discussing whether small investors would possibly have a case against QF for providing insufficient information to them.

 

[Shelf]

Interesting that Senator Xenophon is on the ABC now discussing shareholders and the performance of the board, in particular its rosy reports of the recent past compared with the latest abysmal performance. He is discussing whether small investors would possibly have a case against QF for providing insufficient information to them.

Mr X has an article in The Age today along the same lines.

 

[THE TRIMMER]

No wonder Qantas can,t compete on most overseas routes in my opinion is that their are too many airlines operating in & out of Australia.for example Cathay have 3-4 flights from Melbourne to H.K. .Maybe Qantas,s analysts should have done some more forward planning.they should ask the passengers which routes they would like to fly.