QF results finally released this AM: 2.8 Billion loss. Joyce is frantically re-arranging the deckchairs, proposing to separate QF International Mainline from both domestic and Jetstar.
Not hard to see where that one will head.
1. Load all the group corporate debt into Qantas International Mainline, render it unviable, and then collapse/sell it. (this is probably illegal, after the `Bottom of the Harbour schemes of the late 1970s, famous for being an exceptional case where legislation was made retrospective. An ex-Girlfriend’s father, who was a senior accountant involved, was quietly advised (by the Cops) that rapidly going on an extended overseas holiday was in order. Due to the ` Heavy Names’ involved [Senior Politicians, Lawyers, Govt. Bureaucrats etc,] and the likelihood of jail time, should he survive as far as testifying and naming the names . He spent the next 15 years in Mexico before being given the wink that interest in him had waned sufficiently for him to return). However the best accountants can normally find a way around the best of laws.
2. Joyce’s baby, Jetstar International, takes over the routes and aircraft. Say goodbye to Skippy Internationally, with a stripped down Jetstar `Low Cost’ model competing against Emirates, Etihad, Singapore Airlines and Cathay Pacific.
His battle cry seems to be `Government Subsidies’, however, though there may be some truth in this regarding the first three, I was with Cathay Pacific for 15 years and as far as I know it is still privately owned with no Government support, and competes directly with China backed China Southern, China Eastern and Air China, not to mention the Taiwanese Flag Carrier, China Airlines.
I am very concerned with Joyce’s machinations, and particularly his repeated use of the term `Optionality’ (sic) with regards to mergers available for Qantas International. He barely mentioned Customer Satisfaction or the fine reputation of QF, built up over decades, except in a dispassionate cost-benefit manner. As has been said so many times in these posts, it's all about cost-cutting, nothing about money making, route development and recovering the hitherto loyal passengers gifted to the competition (Perth heading North anybody?).
If I hadn't just heard it I would not have believed it.
When I joined CX in the 1980s the fight for the top spot in the World Airline Awards was hotly contested every year by the big 3; Qantas, Singapore Airlines and Cathay Pacific Airways, with BA lurking. In 2014, Cathay are at #1, followed by Qatar, Singapore and Emirates. Qantas came in at 11, down from 10 last year, behind Turkish, Garuda, Asiana and Etihad. According to friends in QF, they are doing their best, but morale is at an epic low, and the cuts have largely been in low profile, but operationally essential areas, whilst the legions of
PR spin doctors and consultants continue to bloom.
After 15 years of fierce competition with QF, I am surprised to be supporting them, but they are a Fine Airline, indeed Iconic worldwide, and their hard won reputation, built up over decades, should not be squandered by an Irish barrow boy with a `Low-Cost’ dream.
The sooner his head is on a spike on Sydney Harbour Bridge the better!
Rant over.
