Qantas

[Warped Wings]

Qantas Launches Freight Business Latest News
Sydney, 16 August 2006
Qantas today announced the formation of a new wholly owned subsidiary domestic air freight business, Express Freighters Australia, to commence operations from October 2006.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said Express Freighters Australia would wet lease B737-300 freighter aircraft to Australian air Express (AaE) under a 12-year contract.

"This is a new and exciting business that is about growth for the Qantas Group," Mr Dixon said.

"Express Freighters Australia will not only provide increased revenue, but also new employment for pilots and additional work volumes for Qantas engineers.

"We will commence operations in October with one aircraft and four pilots, growing to four aircraft and up to 40 pilots by March 2007."

Mr Dixon said Qantas Engineering had been contracted to carry out the conversion of the B737-300 aircraft for the new business at its Avalon base, as well as provide through-life maintenance support for the aircraft.

He said Express Freighters Australia had already employed pilots under Australian Workplace Agreements (AWAs) for the start up of the new business.

"The pilots' AWAs have pay rates and conditions in line with industry standards for freighter pilots," he said.

"Growing our freight operations is a core strategy for the Qantas Group, aimed at diversifying and strengthening our revenue base," Mr Dixon said.




Issued by Qantas Corporate Communication (Q3461)
Email: [email protected]

[Gordstar]

So, where does this leave National Jet and their 727's?

[Capt Claret]

Interesting.

Only last week I heard two stories re 737 freighters for AAE.

The first said that when the first aircraft was on jacks being cut open to take a cargo door, its back was broken, writing it off.

The second said that another door wouldn't fit because it was new and the airframe was less than new, and less than true.

Don't shoot me. It's a rumour network.

[Wed Webbing Woop]

....... my suggestion for the name of the parcels/packages for this venture:
----------RAT PACKS.!!

[Brake Boy]

" "We will commence operations in October ....."

No you wont!!!:E

BB

[Gordstar]

Geeeez, don't you love aviation!
Well this is all good news for Nat Jet, they can use good news thats for sure.:hmm:

[ennui]

Any 727 endorsed drivers out there looking for a job?

Apply NJS................. May not be long term.............but it will be fun until they figure out how to do a freighter conversion without breaking an airframe because, "of course we don't need to buy a jig, we can make one ourselves with the experienced people we have left in Avalon, and at the same time save some money and increase our bosses bonus"

Ah, Aviation at home.........SICK SICK SICK

[jack red]

Ah........good old QF.

CX, SQ, MH all have 747s (and lots of them) in their respective freighter fleets but not Qantas.............. they choose 737s.:confused:

Dicko, with all due respect Mate............you have lost the plot ! :ugh:

[max autobrakes]

How about the rumor that of all of the 737 Cat D check captains were sent a letter asking for expressions of interest (under present Qantas terms and conditions) to go to Aussie Air Express, "to get the operation up to speed".
A little bird has told me that no one was interested.
I wonder what the going rate for sitting up all night really is these days?;)

[max autobrakes]

How about the rumour whereby 737 Check Captains were recently asked if anyone was interested in going up to a very neighbourly asian country to our immediate north for a stint of training.Another little bird said once again No takers.
Seems like the deal breaker this time was everyone thought the "dry cleaning allowance " to clean one's trousers" was no where near enough to go and risk life and limb for.:}

Can't believe how many little birds are now coming forward willing to blow whistles.
Better keep all staff away from those Safety auditors.
Wouldn't want any nasties getting out ,would we!:ooh:

[Sunfish]

OK, so now you have Qantas dosmetic airfreight, international airfreight and now "express frieghters australia".

So if there isn't one already, we need a:

Group General Manager Airfrieght.
Group Finance manager.
Group Human Resources Manager.
Group Operations Manager.


Then for "Express Freighters Australia" you need a similar structure, plus support staff, plus, plus.......

I wonder how long it will take before a new MD and Board comes in and wields the axe? I think I recall being told that QF has between 1000 and 2000 managers. Stop calling it the Qantas group and just call it Qantas. Roll the whole bloody lot in together. Get rid of all the layers of management, just call it International, domestic and freight departments.

With a Board and management drawn from people who know something about the industry, it is not necessary to promote this current "divide and rule" strategy.

On the other hand.....maybe I can get a management slot in one of these new divisions provided no one susses out my pprune name?????

[3 Holer]

A little bird has told me ............................

Did that little bird also tell you when these 737 freighters were coming on line ? :confused:

[max autobrakes]

I'll go ask the relevant manager bird.

[rescue 1]

Be highly unlikely that EFA has a separate management team - rather existing management wearing two hats. eg QF Airlines AOC team (CM, DC etc) are managing EFA's AOC.

Sunfish, think you'll find the separate entity is for tax purposes only.

[Pete Conrad]

You will also find if you dig deeper that Jetconnect laid all the groundwork for the operation, however, as the guy who heads up the airfreight operation in Qantas is a little empire builder, and saw the opportunity to have his own little airline within the QF group, he effectively took it over.

Oh, look Mr Dixon, I can do it for you at cheap rates..I'll even find allot of desperate to get home to Australia Jetconnect pilots to crew it for you. I'll offer them an illegal contract, just to play on their homing instincts to get home to Australia..I'll shaft them and pay them less than what the current 727 drivers get paid too. Aren't I a good employee Mr Dixon?

I'll even promise these hapless Jetconnect pilots that in three years they will be flying 767 and 747 freighters, they will have to pay for their own type rating though.

Sound familier?

[Wingnuts]

It is not looking good for Geoff’s baby, Express Freighters Australia, with the still birth of its 7373F.
Fwd fuselage has twisted and unless Boeing agrees to come up with a repair, it is destined for conversion in to beer cans. Unfortunately, this could be the straw that breaks the camel’s back and be the end of the 737F program. Being too small, too expensive, AAE never wanted it, an issue that led to the sudden departure of its CEO, a classic example of ‘shoot the messenger’.

The unsuitability of the 73 was driven home to AAE a few months back when they initially lost the very lucrative North Queensland news paper contract because their price was way over the top, using the 73 cost base. NQ would not wear a 50 cent airfreight surcharge on their papers and it would be cheaper to print them in Townsville rather than continue to fly them up from south. AAE were given a death knock opportunity to redo the sums and was subsequently successful, their tender being more in line with the status quo.

In the meantime, working on an August introduction for the 73, a 72 (VLG) has been sold and will depart soon to Canada. To now cover the shortfall in capacity, it is expected a 72 will be wet leased from Transmile (Malaysia). Also, the utilisation of the 146s will be ramped up and there is rumour a 4th 146F is near to being purchased.

What to do then will the surplus 73s? OzJet is looking to expand its fleet from 3 to 8 aircraft. Low time, clean, Stage 3 200s are as rare as hens teeth so it may be opportune for them to upgrade to the 300. It is said that Dixon and Stoddart, both of similar ilks, have a close working relationship so it could be a win win resolution.

So where does that leave Express Freighters Australia? It is by no means a dead duck and is an integral part of Dixon’s long range vision to metamorphose the Qantas brand into a sole freight conglomerate, rail, road and air, to go head to head with Toll. As Jetstar moves into the 787, a scenario has displaced 767s being rolled into EFA. But the reality is they too would be totally unsuitable, too big for the domestic market and too small for international. Which leaves the 7473 as the only realistic launch aircraft for EFA….unless, of course, they beat Toll and Stoddart to the punch and buy Jetex, the 727 operation.

It is ironic that Toll is moving the other way, into passengers, as it agonises over what to do with Virgin. Little seems to have backed away from his original plan to sell, perhaps to wait and see if Dixon follows through with the partial spin off and float of Jetstar.

Regardless, if EFA’s 7373Fs do not happen, the door will also close on Toll’s chance to enter domestic air freight with the more viable 7374Fs and, no doubt, that thought will go on the back burner.

[3 Holer]

........unless, of course, they beat Toll and Stoddart to the punch and buy Jetex, the 727 operation.


They had better hurry up because the rate pilots and ground engineers are leaving, JetEx won't have a 727 operation to sell. :{

[Sunfish]

I have to tell you that if Qantas thinks they can take on Toll in road and rail, they will loose. If Toll thinks it can run a passenger airline, it will loose.

[WalterMitty]

so what is the package that brings so many complaints????????

[otto the grot]

Well, whatever the case is with the 737 freighter conversions, it sounds like Dixon is serious about the expansion of QANTAS freight. This may be just a small hurdle to pass.

[Going Boeing]

Steve Creedy
August 25, 2006
QANTAS has been caught up in a giant international probe into air freight price-fixing and has been subpoenaed by the US Department of Justice.
In February the airline had said it was not part of an investigation by the European Commission and the US DoJ into price-fixing among some of the world's biggest airlines.

But it admitted in financial notes released last week that Qantas Freight had received the subpoena in May as part of the US investigation. The airline said it immediately undertook a detailed review of its cargo operations to see whether it had complied with the law.

Airlines targeted in the investigation include Lufthansa, Lan Chile, Air France, British Airways, Japan Airlines, Korean Airlines, American Airlines, SAS, Asiana Air, Polar Air and Cathay Pacific.

"During this investigation, Qantas has learned that the practice adopted by the cargo industry to fix and impose fuel charges may have breached relevant competition laws," the airline said.

"Qantas is co-operating with all regulators and will be providing them with all relevant information to permit them to undertake their investigations."

Qantas said it was not possible to quantify the liability associated with the matter.

The probe came after years of complaints about suspect industry pricing from businesses using air freight. Investigators are focusing on whether airlines colluded to fix prices on surcharges for fuel, security and insurance.

US and European officials raided airlines on both sides of the Atlantic earlier this year as part of the investigation. It is understood the Australian Competition and Consumer Commission has begun looking into the issue.

[Torqueman]

I have heard from a reliable source that the first 737F is finally off it's jacks and on the deck with a lot of work to go.

[WalterMitty]

So will anyone divulge the contents of these evil awa's at EFA????

[skychaser]

3 Holer
"They had better hurry up because the rate pilots and ground engineers are leaving, JetEx won't have a 727 operation to sell."

Correct me if I am wrong but, at last count, only 2 FOs have gone-both to play in the sand and one other is in the beginning stages of interviews with a different os airline. All 3 may have gone anyway regardless of the present situation. Hardly a mass exodus.

[3 Holer]

skychaser - you don't know half of it buddy. :rolleyes:

[Wingnuts]

It’s good news from our man on the ground at Avalon. Work is progressing to the revised schedule and #1 aircraft is being painted in AAE colours as we speak. Details of the cause of the delay are sketchy and conflicting, depending on whom you speak to and how close to the action they are. The general consensus seems to be that insufficient stress was jigged into the airframe before the door hole was cut. This relief was further compounded by the removal of engines and main gears as part of its check C. (This is the same ‘stress’ that causes the 73 ‘crab’ taxi style.)
It’s a long shot and apprehension is building as the saw is about to be put to the #2 aircraft. CASA is on the case and have found the ‘No worries, mate. We fixed those Lebs up didn’t we?’ assurances of the Israel conversion kit supplier less than comforting. Should talk of suspending the STC firm up, no doubt the political clout of Qantas will prevail.
Speaking of which, our man overheard part of a phone conversion between a shinny, dark suited ‘Tell- you-what-you-want-to-hear’ looking type bloke and another bloke named Geoff someone. Verbatim, it went something like this…
‘er…yes Geoff. There’s been a small hiccup but it will be on line next…
No Geoff. That’s crap. It’s as straight as my….
It’s just the door, Geoff. A bit of a warp and is nothing we can’t adjust out.
Love you too, man. Thanks. Regards to Lucy too…’
Click.
‘****! What do we do now?’
Meanwhile, pilot recruitment has been lurching between on again, off again but mainly at who the hell knows? An unidentified source close to the QF Flt. Dept. said a number of Second Officers, who wish to fast track into the front window seats, have put their hands up. AWA negotiations are continuing. Sticking points being the cost of the conversion and a shortfall in pay. As time goes by, the charge for the endorsement is trending down and Qantas is warming to the idea of topping up EFA’s 73 Capt’s pay to that of a 74 SO, provided the boys are discreet and it does not become common knowledge.
The other good news is that not all of the sold 727, VLG, is going OS. An EO has been raised for the transfer of its user friendly Trimble 21 GPS into VLH which is currently undergoing a check C.

[727ace]

well when are they going to make their grand entry? seems not till end of Oct even if all goes ok with CASA etc,,,,,,,,,,, talk is that the 72 will be around for years and Aae are finally realising that QF have hoodwinked their fleet renewal program with the smaller 733. with xmas approaching and one 72 leaving the shores and maybe another in maintenance dont expect your crissie presents to get any where ontime!!!!