Alan Joyce has manufactured the current crisis.
In Alan's world the JQ multi boarder franchise has been an AMAZING business & an outstanding success. In Alan's eyes the Australian Jetstar operation has been financially propping up the ailing Qantas International business.
The consensus amongst those on Pprune tends to be the Jetstar business has caused the current financial predicament for the Qantas group. The Jetstar expansion has drained capital expenditure that would otherwise have gone to the Qantas mainline operation. Jetstar has utilised Qantas mainline assets & personnel. Whether it be A330 aircraft, Qantas legal, an executive team or the ports offices in Domestic bases. Not to mention Bali JQ staff reported to be on the Qantas payroll. The list of cost allocation has been well discussed and queried to QF management with nil response.
As JQ expanded its operations and was gifted routes, Qantas Mainline A330 aircraft were transferred to Jetstar. Meanwhile JQ continued to recruit new pilots, where mainline pilots lay idle or on forced leave for the last ten years.
What has happened is Jetstar has reached a critical mass, and in my opinion the Jetstar group operations have failed provide adequate returns. Or the returns that Alan forecasted.
Alan would never admit failure with the Jetstar experiment. It's been his baby for the last 10 years.
So now we have a situation where Jetstar may be sold off to save the Qantas group.
Jetstar may get sold. In fact, it wouldn't surprise me if a deal has already been done. Hence the manufacturing of this crisis where the sale of Jetstar will save the Qantas group from imploding.
I did mention some time ago, Joyce was made an offer on the Jetstar Asian businesses. But at the time, the offer wasn't high enough to get the sale across the line.
Perhaps Alan's dropped the asking price?
MC.