Originally Posted by
DirectAnywhere
This is what happens when "managers" get so excited by their promotion and F11 upgrade they lose sight of what they were put there to do in the first place after their more experienced colleagues (who know about resource planning) were made redundant four years ago. Babes in the wood with stars in their eyes.
This.
The whole point of the thread is that this fish rotted from the head down. Executive Management and Board failed to strategically position the company and shareholder funds from foreseeable threats. Fleet decisions are overdue and pilot training throughput foreseeable.
Executive management intent on re-writing social policy, random walks in Asia with JQ, and ineffective oversight from a board big in asset leasing and IR experience, but light on aviation experience, other than what First Class travel feels like and this is the result: A business struggling. Spending a lot on advertising, expensive junkets to Seattle so that the MSM don't notice...
With WTI at USD$74.11 and Brent higher, Jet fuel is rapidly approaching AUD$110 a barrel. Qantas face term structure pressure on fuel. They are hedging into higher forecast fuel prices.
With
important geo -political developments driving forward premium, namely Venezuelan and Persian oil (if Trump exercises the 90 day clause) removing vital oil supply from the market and the Saudi Aramco IPO being predicated on at least USD$80 oil, the term structure suggests more contango in the oil market. This is not conducive to a 'transformation' narrative, nor is the QSA the problem. As Qantas benefited from the
downwards leverage in the transformation year FY15 of a steeply falling fuel price, they are exposed on the way up. Far more exposed than their competitors.
Leigh Clifford may well be handing the new guy a hospital pass....
Qantas need a new fleet...Stat