Qantas is in serious trouble. If the current BBB+/A2 rating is downgraded, the company will have junk bond status. The down grading from stable to negative overnight is very serious.
With over $20 Billion worth of orders out there, it is time for drastic action.
The A380 order should be cancelled wie
All A330's should be transferred to JQ together with their route structure to take advantage of the lower cost structure
The 787 should all go to the mainline and replace the 767's and A330's
B737's should be replaced with the A320 family (319 / 321) and this network transferred to Jetstar
Order 747-9 aircraft to replace the A380 and 744 types. Forget 777's
Reduce training costs by introducing direct entry Captain's (the same as SIA and other safe airlines do)
Outsource 60% of cabin crew to labour hire companies or immediately introduce AWA's to address poor productivity, efficiency and standards.
Lobby CASA for 1:50 cabin crew in line with world practice.
Outsource maintenance. Reality not emotional debate in needed here
Outsource airport functions as per the Jetstar model. The last outsourcing attempt was flawed, true competion is required
Down size the corporate functions by at least 15% wie
Remove the duplication introduced in the last reorganisation. Prior to the re org, QF had 23 Group General Managers, how many does it have today? ..twice as many you say ..check again
Get rid of the Boston Consulting Group - BCG - and their $25m annual price tag. They are expensive brain dead leeches! If you need to know the time, check your own watch.
Tough times require tough responses. Qantas is a sheltered workshop. It has the lowest staff morale of any major Australian company, indeed in the world, yet it has the lowest staff turnover rate. Completely overhaul the HR department.
Qantas is headed down the path of other former great airlines, PanAm, Eastern, Ansett. The issues are not different. History is a great teacher, start reading it, and I suggest you start reading the "jobs vacant" section as well.