freddyKrueger
28th Jan 2007, 01:51
The Australian has an interesting article on TPG's Ben Gray and TPG plans for Qantas HERE (http://www.theaustralian.news.com.au/story/0,20867,21124170-643,00.html)
Here are a few extracts
Gray argues that TPG is different from other private equity firms which have a reputation for slashing costs and tarting up companies for a quick sell. But he points to TPG's track record in turning around Continental from one of the worst-managed US airlines, which was hated by passengers, to a successful and profitable full-service airline.
"Continental went from worst to first in terms of customer service and employee morale, which are directly linked," he argues.
"Having owned Continental we know that what matters is the staff and the customers."
He insists that Qantas customers should not be fearing they will have to battle a downturn in service under new ownership.
"What matters in this business is making sure customers want to fly our airline.
"If you don't serve them they will go to one of your competitors." "The way we will make money is to support the current management team in their business plan, which is to spend $10 billion on new planes and greatly grow capacity.
"We will also support them in their initiatives to continue to manage costs, which are well-published."
Gray says the private equity team won't "interfere" with Qantas management but will be there ready to help out as a "sounding board" if chief executive Geoff Dixon and his team feel they need some words of advice." "Running through TPG's string of investment successes around the world, Gray admits there has been one which has been less than spectacular - the airline catering business Gategourmet, which it bought from Swissair. But he argues that its problems were specific to its workforce at London's Heathrow Airport and do not mean it takes a similar view to Qantas's own in-flight catering business."
Memo to TPG
Pilot engagement has no "dollar value"
Senior ManagerI can assure you it does.
You better give the "sounding board" a work out. Perhaps some advice on treating people with respect, rather than contempt would be an appropriate starting point. You are just about to buy a company with some exceedingly pi$$ed off and dissolutioned people. Their motivation to help your cause (making money) is incongruous with their own diminished career prospects under current management policy.
You may find another gate gourmet on your hands if you cannot reward people with opportunites to part of the Qantas Groups growth.
Here are a few extracts
Gray argues that TPG is different from other private equity firms which have a reputation for slashing costs and tarting up companies for a quick sell. But he points to TPG's track record in turning around Continental from one of the worst-managed US airlines, which was hated by passengers, to a successful and profitable full-service airline.
"Continental went from worst to first in terms of customer service and employee morale, which are directly linked," he argues.
"Having owned Continental we know that what matters is the staff and the customers."
He insists that Qantas customers should not be fearing they will have to battle a downturn in service under new ownership.
"What matters in this business is making sure customers want to fly our airline.
"If you don't serve them they will go to one of your competitors." "The way we will make money is to support the current management team in their business plan, which is to spend $10 billion on new planes and greatly grow capacity.
"We will also support them in their initiatives to continue to manage costs, which are well-published."
Gray says the private equity team won't "interfere" with Qantas management but will be there ready to help out as a "sounding board" if chief executive Geoff Dixon and his team feel they need some words of advice." "Running through TPG's string of investment successes around the world, Gray admits there has been one which has been less than spectacular - the airline catering business Gategourmet, which it bought from Swissair. But he argues that its problems were specific to its workforce at London's Heathrow Airport and do not mean it takes a similar view to Qantas's own in-flight catering business."
Memo to TPG
Pilot engagement has no "dollar value"
Senior ManagerI can assure you it does.
You better give the "sounding board" a work out. Perhaps some advice on treating people with respect, rather than contempt would be an appropriate starting point. You are just about to buy a company with some exceedingly pi$$ed off and dissolutioned people. Their motivation to help your cause (making money) is incongruous with their own diminished career prospects under current management policy.
You may find another gate gourmet on your hands if you cannot reward people with opportunites to part of the Qantas Groups growth.