What fleet decisions would you make?
What would your competitive advantage be (that's not a business school buzz phrase by the way) and how would you keep it sustainable?
What would be your core markets - and where would you fly to?
What areas would you target for cost cutting?
Would you keep JQ?
What about heavy maintenance - onshore or offshore, and why?
What would you do about the QSA?
My first step would be to create a vision and share it with the entire workforce and shareholders. QF hasn't enunciated a vision at this stage and this has dis-engaged staff and mystified investors. All other decisions would flow from the vision and can be tied back to the vision so everyone understands how the pieces are coming together.
I would keep JQ but clearly separate it product wise from QF. For example, no booking of JQ flights from QF website. I am less sure about the Asian Jetstars and would probably look to sell them off licensing the name if necessary. I am unsure on JQ long-haul. Until we know if this is profitable, it is hard to make any plans.
Cost cutting would have to occur across the business but once again it would be in line with the vision. For example, JQ may commence to provide aircraft and staff for domestic but the A320s (probably surplus if the Asian business is gone) would be in Qantas livery with Qantas product similar to JetConnect etc. Maintenance would be subject to a cost analysis. If the in-house tender was competitive, it could stay but if it is much more expensive, the obvious decision would have to be taken.
Route structure would be clearly defined in the vision. If int'l is to be retained, it would be ramped up with services to LHR via Asian ports resumed using currently leased slots. Likewise US services would be continued with A380/789 taking over depending on demand. I would also look at resuming AKL-LAX using 789s. I don't understand why the monopoly position was gifted to NZ on this route. Asia would also be a focus with QF services into the hubs of chosen partners such as China Southern, Jet in India etc. QF would also resume services from ports such as PER and ADL to HKG/SIN etc.
Fleet is a difficult and long-term option and would depend on existing commitments and financing but I would look to achieve the following:
Reduce fleet types by timing retirement of 747s within 4 years, ordering 789s and 78Js as new medium sized int'l fleet operating alongside A380s. In short-haul I would retain 738s & A330s though may look to already ordered A320 NEOs operating on reduced cost base to begin replacing them from 2020ish.
Unlocking shareholder value is also a key for any new CEO and this would be a key part of the vision. This may mean partly selling down FF or JQ. QSA would need to be removed so external investment can be attracted from key partners.
As you can see, some of my ideas probably aren't that far away from the current management but they would be tied to a clear vision rather than the current situation.