Qantas Results

[Platinum A332]

Qantas full year results will be out tomorrow - what does everyone think will happen? My hunch;

- The worst loss ever recorded in Qantas history as a private company.
- A lively AGM to soon follow

Domestic
- More International A333 to fight Virgin (see below).
- Return to selected ports abandoned by QF as part of the deal with EK - HTI and MCY spring to mind.
- Potential 717 jet replacements/additions for QantasLink - lowest cost base and to facilitate FIFO expansion.
International
- Cessation of flights to Frankfurt and (possibly) Shanghai and/or Jakarta. AJ is apparently flying soon after the meeting for discussions with China Eastern. This would allow 3x744 to be retired, plus more A333 to be allocated to domestic flights to fight Virgin.
- Announcement of a partnership with EK or QR to compensate for loss of FRA services. And potentially teaming up with MU for the Chinese market.

Thoughts?

 

[The Rok]

Please god let there be an announcement regarding a full tie up with Emirates!

 

[simongr]

I dont think think FRA would be much of a loss if there was a good alliance ex-DXB to more European (and Middle Eastern) locations.

I would hope they wont be leaving PVG as that is the future.

 

[Must...Fly!]

Could make any number of predictions but I really am interested to wait and see...

 

[oz_mark]

I'm just hoping for a coherent strategy to turn things around.....

 

[simongr]

You expecting AJ to ride in on a flying pig oz_mark?

 

[burrco]

The launch of an exciting new Asian based premium airline!

Oh wait...

Maybe the announcement that Qantas International is going to merge with Flight Centre and derive its revenue from selling seats on other airlines - like Emirates.

 

[Must...Fly!]

Do we have a time when this will take place?

 

[anat0l]

For every AFFer pi**ed off by the result or uses the word 'spin' in their post, 1 shot of tequila.

1 additional shot per million dollars of loss on QFi.

1 additional shot every time "Jetstar" is uttered.

That should ease the pain.

Sent from my GT-I9300 using AustFreqFly

 

[koonyaflyer]

There was a "suggestion" earlier this week which indicates an operating loss of around 450million, their first statutory lost since 1995. Also a uggestion that Joyce has a pay cut.

Interesting day today.

 

[simongr]

My understanding was that Joyce has forgone his bonus rather than getting a pay cut.

 

[The Rok]

Can he survive a $450 million loss?? That would be difficult to dodge!!

 

[Jousams]

For every AFFer pi**ed off by the result or uses the word 'spin' in their post, 1 shot of tequila.

1 additional shot per million dollars of loss on QFi.

1 additional shot every time "Jetstar" is uttered.

That should ease the pain.

Sent from my GT-I9300 using AustFreqFly

I cannot handle that much alcohol!


Sent from my iPhone using AustFreqFly app

 

[freepyjamas]

My understanding was that Joyce has forgone his bonus rather than getting a pay cut.

He must have the bar set pretty low on his KPI's if he is actually in a position to receive a bonus in the first place.

 

[SeatBackForward]

He must have the bar set pretty low on his KPI's if he is actually in a position to receive a bonus in the first place.

The bonus was applicable to performance in past years, not for the current one.

 

[markis10]

He must have the bar set pretty low on his KPI's if he is actually in a position to receive a bonus in the first place.

Have to agree, who gets a bonus for a statutory loss??

 

[SeatBackForward]

The bonus was applicable to performance in past years, not for the current one.

That said, corporations just come up with more complicated and more sophisticated mechanismsfor determinig renumeration, so ultimately they still get what they want - they just hide it inside complexity and hope most people wont question it because some consultant put some method behind the madness.

 

[SeatBackForward]

Back when ASIC made publishing renumeration compulsory, the idea was so we could clearly see what they were getting paid, but the end result was that they all quickly realised what they *could* be getting paid instead. Pages 36 to 46 of the Qantas 2011 Annual report are solely dedicated to Renumeration of Executives and Directors:

The Executive Remuneration Framework as it applies to the CEO and the Executive Committee comprises:
—— Fixed Annual Remuneration (FAR)
—— The Short Term Incentive Plan (STIP)
—— The Long Term Incentive Plan (LTIP)

As an example of the complexity they create, here is how the STIP is calculated for the 2011 year:

 

[smit0847]

What time will everything be announced?

 

[markis10]

Its announced:

http://www.asx.com.au/asxpdf/20120823/pdf/42869cv0l398yt.pdf

Not great news for Boeing with the move from firm back to options for the 787-9s!