QANTAS to split into Domestic and International organisations

[amaroo]

Re: QANTAS to split International and Domestic operations from July

CEO of QFI - would have to be one the smallest CEO roles in World aviation - he could travel the whole network in his first week in the role

 

[smit0847]

Re: QANTAS to split International and Domestic operations from July

Being appointed QFi CEO is like being appointed as a State Transport Minister. It sounds fantastic but the reality is its a nightmare position that no-one wants.

I think all the QFd CEO will really lose sleep over is the encroachment of VA on its 'line in the sand', it seems like otherwise a pretty cruisey job.

I have absolutely no idea how they are going to turn around QFi - there are such deeply entrenched fleet, union, geography and legacy issues that I doubt can be fixed in 5 years.

PS - 'Jetstar is the leading LCC in Asia'? I think Air Asia might have something to say about that!

 

[NM]

Re: QANTAS to split International and Domestic operations from July

Perhaps QF Domestic could be re-branded Australian Airlines or even Trans Australian Airlines and use the flight code TN? Some of the 734's would probably feel quite at home in a blue/gold colour scheme?

 

[Stoopidsteve]

Re: QANTAS to split International and Domestic operations from July

"Formally separating the management of Qantas International and Qantas Domestic will ensure that we can independently run each business according to its specific priorities and market conditions," Mr Joyce said in a statement.

"Formally separating the mismanagement of Qi and Qd will ensure that blame for not knowing what the other is doing can be formalised and each business can be run while blaming the other for stuff-ups" an unusually forthright and honest anonymous insider said

(I might have made that second quote up, a bit).

 

[Standby]

Re: QANTAS to split International and Domestic operations from July

Perhaps QF Domestic could be re-branded Australian Airlines or even Trans Australian Airlines and use the flight code TN? Some of the 734's would probably feel quite at home in a blue/gold colour scheme?

View attachment 7482

Air Tahiti Nui have grabbed the old TN code
Perhaps all this is just recognition that they have been spending too much time internally focused on QFI and have taken their eye off the ball Domestically . Srambi was at Ansett before going to Virgin Atlantic

 

[drewbles]

Why do I get the feeling QF international will fade and die pretty much.

I feared this. QF international will be SYD-LHR (via SIN) and SYD-LAX in no time at all.

JQ then gets the 787, starts opening up 'leisure' routes (SYD-SFO anyone?) and expands out.

Of course this is just my theory. I really have no idea how the industry works, but it seems to be in line of the 'jestarization' of QF that AJ said would cease (it is ceasing effectively; they break up the group and don't expand one part of it whilst expanding the LCC side).

 

[Danger]

Re: QANTAS to split International and Domestic operations from July

How are the costs associated with the fleet dealt with? Especially if a plane does intl and dom routes?

I know the article says 'business as usual' but you'll excuse my pessimism.

Let more confusion reign.

Question: I'm flying on a Qantas international flight connecting to a Qantas domestic flight. What does this mean?
Answer: Qantas international and Qantas domestic are the same company. However, at the international port of embarkation your luggage will only be checked to your first Australian port. At that port, you will need to claim your luggage and proceed to the transfer desk to check-in for your Qantas domestic flight. Please be sure to adhere to strict luggage limitations as Qantas international flights and Qantas domestic flights have different restrictions, even if you booked on the Qantas website for an international ticket but because you have a Qantas domestic sector as part of this Qantas international sector, you'll need to adhere to the different restrictions, despite your ticket booked at qantas.com, except if travel is to/from the Americas and onward travel is less than 24 hours. If you are flying on a Qantas international ticket with an onward Qantas domestic flight that then connects to a Jetstar flight, you will need to claim your bags at the first domestic port before your onward Qantas domestic flight and then check-in with Qantas domestic before claiming your bags at the second port and checking-in with Jetstar. Note that your Qantas international ticket does not necessarily entitle you to checked baggage on your Jetstar domestic ticket unless a 'plus Qantas international/domestic' bundle is purchased in which case you will be entitled to checked baggage on that sector only.^

^ Exclusions apply. For example, if your international Qantas ticket includes travel on a codeshare, for example, British Airways, then you may have different travel requirements which will be different again if your flight is a codeshare with a non-oneworld airline. Exception: if travel is from Australia to London via Singapore (or via Bangkok or Hong Kong on British Airways) you may need to simply not travel with luggage to avoid the hassle. This information should be used as a guide only.

 

[docjames]

Re: QANTAS to split International and Domestic operations from July

The temptation here is to be cynical and see QFi being stage managed out the door.

The positive way to look at is that they can now more acutely focus on 4 separate aspects of their business (QFi, QFd and QFF and JQ), with structural separation (ie. no cross subsidising) and decent accountability of each part of the business. It also "grooms" at least 3-4 potential CEOs in waiting, none of whom will be happy to see their business cross subsidise the other parts.

 

[markis10]

Re: QANTAS to split International and Domestic operations from July

Taking the leader of the most successful QF business unit $$$ wise and putting them in charge of the worst unit is IMHO a very smart thing!

 

[whatmeworry]

QANTAS breaking up the company into separate businesses!

Qantas Airways splits domestic, international wings

 

[Stoopidsteve]

Re: QANTAS to split International and Domestic operations from July

Taking the leader of the most successful QF business unit $$$ wise and putting them in charge of the worst unit is IMHO a very smart thing!

or a really bad idea if you believe Warren Buffet...

"When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."

 

[ChrisCunard]

Re: Qantas International and Domestic Business to split

I assume that QFi and QFd will be operated just as QFLink and JetConnect are - you book at qantas.com, you check in online (the issue with QFLink advance seat selection notwithstanding), you go to the airport, you board the plane and you fly... what happens behind the scenes should be irreverent to the pax.

Perhaps the door is open for Mr Joyce's replacement in the near future?

Qantas overhaul opens way for Alan Joyce's successor

Cheers, Chris.

 

[whatmeworry]

Re: Qantas International and Domestic Business to split

I wonder if this is a move to dilute the power of the unions? I worked for a company where there were 3 or 4 separate businesses on one property. So in effect, by setting them up into separate legal entities the group bypassed certain workplace laws.

I am just being paranoid or is Alan Joyce up to something?

 

[markis10]

Re: QANTAS to split International and Domestic operations from July

or a really bad idea if you believe Warren Buffet...

"When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."

Maybe so, but in that context JB seems to be working over at DJ!

 

[Flying Fox]

Re: Qantas International and Domestic Business to split

I'm surprised by the news about Bruce Buchanan.

Wonder if he will take some time off after consulting etc and then find a seat at next to John Borgetti?

Does this mean that Simon Hickey, Jayne Hrdlicka and Lyell Strambi will report to Alan Joyce?

 

[docjames]

Re: Qantas International and Domestic Business to split

Does this mean that Simon Hickey, Jayne Hrdlicka and Lyell Strambi will report to Alan Joyce?

Yes.

5678910

 

[Ekka]

Re: QANTAS to split International and Domestic operations from July

Fortunately I kept my TAA cufflinks from the days of real aeroplanes: Electras and Thumpers.

 

[eastwest101]

Re: QANTAS to split International and Domestic operations from July

Heard on the radio this afternoon the interview with Neil Hansford whom is the head of Strategic Aviation Solutions and he made some very good points about the re-structure being more about possible future separate ASX listings of QFi and QFd as a workaround for the Qantas Act and getting possible foreign investors more interested. Solves a lot of problems that VA/DJ have also attempted to solve with their corporate restructuring.

I don't think its union busting myself (but can see how other people can) - as the groups workforces are still large, its more a case of setting your business up in a more tax effective/corporate & owership and legal sense. Implications for the exact legal enentities of Qantas flow through to labour, fuel, government approval of routes, future bases, carbon and other aviation specific taxes/charges and aircraft fleets. Don't forget the rumblings about government changes to accelerated depreciation come into the mix as well.

Its a capital intensive but also capital mobile business that can operate across multiple juristictions - not unlike another notorious industry that some like to demonize. Will be interesting to see if this corporate "pushing the envelope" raises any pushback from the government/unions or other competitors....

 

[Deleted member]

I wonder if this will open the merger door again ?
It kinda makes sense in a way. My only issue is where does my QFF membership sit ? Will I become a domestic only member, will my status translate to the other entity? So many questions.

 

[yohy?!]

Re: Qantas International and Domestic Business to split

I'm surprised by the news about Bruce Buchanan.

Wonder if he will take some time off after consulting etc and then find a seat at next to John Borgetti?

Does this mean that Simon Hickey, Jayne Hrdlicka and Lyell Strambi will report to Alan Joyce?

Lol no I think there's some bad blood behind the scenes...here's his next gig:!:

Jetstar Group CEO Bruce Buchanan departs the airline and joins Vanessa Megan - Vanessa Megan

Talk about a hard fall! Going to work for your wife's cosmetic startup!!