Qantas slashing jobs and possibly selling FF program?

[BD1959]

You missed the bit where Woolworths spends 3 years insisting it is doing everything perfectly and has it under control... http://www.australianfrequentflyer....qantas-relaxed-about-virgin-revamp-32670.html

And the bit where Woollies opens stores overseas, raiding the Australian warehouses for crates of food to send, which are then sold at a price far less than they paid for them here - but claiming what a great profit they're making.

Regards,

BD

 

[maninblack]

An article I read in the Weekend Australian this morning speaks of a source who believes that the fundamental mistake of Dixon going for the A380 rather than down gauging to the 777 had the effect of baking in a high cost structure for QFi. I realise it is a hoary old chestnut, but one can only wonder how QFi would have performed much better moving to 777 earlier on.

Indeed, everyones getting stuck into AJ and maybe rightly so but Dixon/Jackson et al have much to answer for.

 

[wallaby1]

how though does QF solve its high cost structure on Asian routes (BKK, HKG, MNL, PVG and SIN)

Perhaps by assigning the arriving 787s to Qantas instead of to Jetstar.
But then, why assign nice new aircraft to your premier service when you can use them on your down-market service.

 

[maninblack]

Perhaps by assigning the arriving 787s to Qantas instead of to Jetstar.
But then, why assign nice new aircraft to your premier service when you can use them on your down-market service.

Part of the ongoing trashing of the Qantas brand. Beggars belief really.

 

[JohnK]

The Fin Review has a front page article today that a "corporate raider" is leading a group keen to approach Qantas with a plan to buy their planes and then lease them back to them in a deal that could apparently be worth over $5 billion. The group would want the government to guarantee the lease payments by Qantas. If Qantas went under the group would own the planes and lease them to other airlines.

The eyes of the vultures light up!

 

[Robbi]

I've flown to Europe 3 times in the last 2 years and not once flown direct from ADL. Once I flew back direct from SIN which was a nice change not having to root around with my luggage at MEL, but not really a big deal.

Going again Feb next year, in and out of MEL again.

Don't think direct ADL flights to Europe or US matter much. Asia yes.

 

[SeatBackForward]

And the bit where Woollies opens stores overseas, raiding the Australian warehouses for crates of food to send, which are then sold at a price far less than they paid for them here - but claiming what a great profit they're making.

Regards,

BD

And let's not forget that the cheaper no frills stores don't seem to have any warehouses, administrative offices or overheads, but rather rely on the parent company's resources..

 

[Danger]

Page 10 of today's Telegraph (and presumably other papers around the country).

I find the headline . . . ironic.

 

[BAM1748]

The Fin Review has a front page article today that a "corporate raider" is leading a group keen to approach Qantas with a plan to buy their planes and then lease them back to them in a deal that could apparently be worth over $5 billion. The group would want the government to guarantee the lease payments by Qantas. If Qantas went under the group would own the planes and lease them to other airlines.

Yes, QF is a real target by people thinking they can make a quick billion. Lucky Lehmann Bros won't be one of them but still leaves a pool of sharks trying to get a bite.

Matt

 

[Melburnian1]

No two sub-sectors of an economy are deintical, but Coca Cola Amatil is one business that has suffered (with profits down 10 to 14 per cent if I recall) because Pepsi/ Schweppes (owned by the Japanese here) has deeply discounted its drinks.

Coke has lost local market share, but it hasn't trashed the brand and as far as I know remains profitable.

Is there a lesson for QF in this (notwithstanding that few airlines are profitable in the first place at a level that would please shareholders)?

 

[Hvr]

Page 10 of today's Telegraph (and presumably other papers around the country).

I find the headline . . . ironic.

Yeah, it's in the Sunday Age as well.

 

[erkpod]

No two sub-sectors of an economy are deintical, but Coca Cola Amatil is one business that has suffered (with profits down 10 to 14 per cent if I recall) because Pepsi/ Schweppes (owned by the Japanese here) has deeply discounted its drinks.

Coke has lost local market share, but it hasn't trashed the brand and as far as I know remains profitable.

Discounted Pepsi? Where?

I was speaking to a small convenience store the other day who said that for them, Pepsi is getting too expensive to get in.

In larger places (service stations, 7/11 etc), regular Pepsi is getting harder to get.

 

[Sojourner]

Are those debt facilities still valid post the credit downgrade though? And how much of that cash is forward bookings they're not allowed to access now? I genuinely don't know but those figures were based on an investment grade rating they no longer have.

The so called cash and debt facilities on QF's balance sheet is a false sense of security. It operates in a capital intensive industry, and money should always be set aside for refurbs, new aircraft purchases that inevitably need to be made, etc. All that cash and debt facility can be eaten up very very quickly.

 

[Melburnian1]

erkpod, I was talking about supermarkets not the 'route trade' (small outlets).

 

[BAM1748]

The next crisis to create is to announce regional QLink routes being looked at to axe. That will focus the rural MPs into lobbying for QF.

A crisis creates action.

Matt

 

[Supersonic Swinger]

Page 10 of today's Telegraph (and presumably other papers around the country).

I find the headline . . . ironic.

I wonder how much of their much needed spare cash they burnt through for all those ad pages? This is the sort of nonsense advertising Ansett wasted cash on in its dying days.

 

[Ansett]

I wonder how much of their much needed spare cash they burnt through for all those ad pages? This is the sort of nonsense advertising Ansett wasted cash on in its dying days.

I never waste cash and I aint dying LOL

 

[Supersonic Swinger]

I never waste cash and I aint dying LOL

You mean, I can finally redeem my c. 400,000 Ansett Global Rewards points with you for a RTW in J?

 

[Happy Trails]

I wonder how much of their much needed spare cash they burnt through for all those ad pages? This is the sort of nonsense advertising Ansett wasted cash on in its dying days.

Absolutely.
I recall One.Tel also had a huge advertising blitz shortly before it went under.

 

[Hvr]

Absolutely.
I recall One.Tel also had a huge advertising blitz shortly before it went under.

So did Ansett with that song.