All its going to achieve is increasing the risk of the next financial downturn coming around, and QF once again, stuck trying to manage through it with an inefficient, out of date fleet.
That is precisely the point.
They enjoyed a $597 million windfall in fuel price reduction.
The impaired the International fleet saving $326 million
That is pretty much the entire 'turnaround'
The fleet has how many 787 (3 or 4?) of a total of 8?
Mr Clifford may be well suited to the personality and characteristics of rocks, but airlines are completely different. At Rio Tinto if they didn't like the price of ore they left it in the ground. A substantial fuel price spike or indeed demand collapses airlines with inefficient fleets are precariously exposed.
Instead of actually structuring the business to deliver lower CASK, by re-equipping so that
if fuel spiked again they would be prepared they instead vested million of options and spent nearly $1.75 billion pumping the share price..
This is from IATA itself...
Industry priorities
IATA recognizes the need to address the global challenge of climate change and adopted a set of ambitious targets to mitigate CO2 emissions from air transport:
- An average improvement in fuel efficiency of 1.5% per year from 2009 to 2020
- A cap on net aviation CO2 emissions from 2020 (carbon-neutral growth)
- A reduction in net aviation CO2 emissions of 50% by 2050, relative to 2005 levels
Short of a grounding or fleet change it will be interesting to see just how Qantas achieves the targets. Thanks CT it would appear that the office holders reap the KPI and the passengers suffer in stifling cabins because the international fleet burns almost double the fuel per ASK.
Interestingly Mr Joyce and Clifford denied Qantas domestic a twin aisle aircraft sending the 788 to JQ.
- There are now nearly three 737 required to carry the same ASK as two 767.
- Six pilots needed
- More cabin crew?
- More fuel burned
- Airspace congestion as more airframes in same 'air space' (think terminal area) leads to delays and holding
Seems like pure efficiency to me.
Must be the labour cost or the Sale Act. Have a look in the mirror Leigh it is that guy who is responsible.