Borghetti Off To Virgin [Archive]

Pegasus747

1st Mar 2010, 20:10

Ex-Qantas exec firms for Virgin
MATT O'SULLIVAN
March 2, 2010
VIRGIN BLUE'S replacement for its long-time boss, Brett Godfrey, could be announced as early as today, amid mounting speculation that former Qantas executive John Borghetti is the most likely heir apparent.

Several industry insiders said yesterday that Mr Borghetti was expected to become the airline's next chief executive, though they did not rule out Andy Harrison, the boss of British no-frills airline easyJet, as an outside chance for the top job.

Mr Harrison is due to leave easyJet at the end of June.

Mr Borghetti has been pursing his own business interests - including joining the board of US aircraft manufacturer Piper Aircraft - since leaving Qantas last May, and industry insiders say he is a logical choice because of his understanding of the travel market in Australia.

The former third-in-charge at Qantas did not return calls yesterday, but he has been been rumoured to be a likely contender since the non-compete clause in his contract expired on November 1.

The announcement of a replacement will be a relief for investors and staff, who have had to endure months of uncertainty about who will chart a new course for the airline. Fortunately for Mr Godfrey's successor, Virgin Blue appears to have largely overcome the worst of the downturn in air travel.

The airline hired executive search firm Heidrick & Struggles before Mr Godfrey publicly announced his resignation in July, and last month the board shortlisted about three candidates. Heidrick & Struggles also conducted a search for Qantas in 2008 to find a replacement for its former boss, Geoff Dixon.

Mr Godfrey, who has said he will remain at Virgin Blue until December if the need arises, has played a large role in vetting the applicants. The board is known to rely heavily on the co-founder's extensive knowledge of the airline and the aviation market.

David Baxby, a rising star of Sir Richard Branson's Virgin Group, is also seen as a possible candidate. But Virgin insiders have been playing down the likelihood of the former Goldman Sachs JBWere banker having an interest in the job.

Mr Baxby is a Virgin Blue director but spends most of his time managing the airline interests of Virgin Group, which has a 26 per cent stake in Australia's second largest airline.

Virgin Blue last week posted a better-than-expected profit in the first half of $62.5 million, compared with a loss of $101 million for the same period in 2008.

speed-brake

1st Mar 2010, 20:38

These "industry insiders" haven't been to correct lately.

IFF

1st Mar 2010, 21:48

ormer Qantas executive John Borghetti wins top job at Virgin Blue

* Steve Creedy, Aviation writer
* From: The Australian
* March 02, 2010 9:27AM

FORMER Qantas executive general manager John Borghetti has been appointed the next chief executive of Virgin Blue.

He will replace outgoing chief executive of Virgin Blue, Brett Godfrey.

No more details were immediately available.

Mr Borghetti left Qantas in April last year after losing out to Alan Joyce in the race to replace CEO Geoff Dixon.

Mr Borghetti spent 36 years with Qantas and had been in charge of the airline's domestic and international operations, where recent innovations included the introduction of a premium economy class as well as cabin and service redesigns for the Airbus A380 superjumbo.

The Virgin Blue board has had plenty of time to select a replacement because Mr Godfrey gave them ample warning that he intended to leave the airline later this year.

The board is understood to have cast a wide net in its search for a new chief executive, including players from European low-cost carrier easyJet and major overseas airlines.

However, it is understood the overseas candidates were put on hold pending discussions closer to home.
While Mr Borghetti's experience is with full-service product, one former airline executive noted this could fit in well with Virgin's move upmarket, as it tries to attract more business and government passengers.

"If that's the way they're thinking and they want to attack more of the Australian corporate market, Borghetti would be a good choice," the executive said, adding that his international long-haul experience would also be valuable.

The new chief will take over at a good time with the budget carrier last week outscoring Qantas for the first time with a $62.5 million profit for the half-year to December.

"I think this is the turning-point set of results, "Mr Godfrey said at the time. "I know it is easy to say because I'm departing, but I'm quite comfortable the business is quite solidly positioned."

whatever6719

1st Mar 2010, 22:03

Lucky Virgin!!
Wish he was running Qantas.
They are lucky to have him.

piston broke again

1st Mar 2010, 22:15

Task # 1....new uniform please!

Servo

1st Mar 2010, 22:32

I wonder how Steve Creedy found out so quickly? I only just received the email myself......... then again if it is like the rest of the operation us guys and girls are always the last to know!

Where will John lead us?? Who knows. I hope he brings some balance to the company and eliminates some of the Brettanisms we have to suffer.

Time will reveal all I suppose..................

Servo

PBN

1st Mar 2010, 22:48

Virgin Blue targets Qantas with new CEO

MATT O'SULLIVAN

March 2, 2010 - 10:44AM
Virgin Blue confirmed today that Qantas’s former third-in-charge, John Borghetti, will replace its long-time boss, Brett Godfrey, in May, in what shapes up to be a major challenge to its key rival in Australia.

Ending months of speculation about the heir apparent, Virgin Blue’s chairman, Neil Chatfield, said today that Mr Borghetti, a 36-year veteran of Qantas, was the right person to lead the airline ‘‘through the next phase of its evolution’’ because of his deep aviation experience and proven strategic capabilities.
[/URL]Mr Borghetti, the 54-year-old who was overlooked for the top job at Qantas in 2008 in favour of Alan Joyce, said Virgin Blue was in good shape ‘‘and exceptionally well placed to build on its strengths and embrace revenue growth opportunities ahead’’.
His experience in running Qantas’s airline business could help Virgin Blue’s stalled efforts to capture a larger chunk of the high-yielding business market from Australia’s largest airline.
Although the broad terms of Mr Borghetti’s employment have ben agreed, various terms of the incentive components of his remuneration are still be be finalised.
Mr Borghetti has been pursing his own business interests - including joining the board of US aircraft manufacturer Piper Aircraft - since leaving Qantas last May, and industry insiders say he is a logical choice because of his understanding of the travel market.
The former third-in-charge at Qantas has been rumoured to be a likely contender since Mr Godfrey announced in July last year that he would leave Virgin Blue. The non-compete clause in Mr Borghetti’s contract with Qantas expired on November 1.
The announcement of a replacement will be a relief for investors and staff, who have had to endure months of uncertainty about who will chart a new course for the airline. Fortunately for Mr Borghetti, Virgin Blue appears to have largely overcome the worst of the downturn in air travel.
The airline hired executive search firm Heidrick & Struggles before Mr Godfrey publicly announced his resignation in July, and last month the board shortlisted about three candidates. Heidrick & Struggles also conducted a search for Qantas in 2008 to find a replacement for its former boss, Geoff Dixon.
Mr Godfrey has played a large role in vetting the applicants. The board is known to rely heavily on the co-founder's extensive knowledge of the airline and the aviation market.
Andy Harrison, the boss of British no-frills airline easyJet, was also seen as outside chance for the top job. Mr Harrison is due to leave easyJet at the end of June.
Virgin Blue last week posted a better-than-expected profit in the first half of $62.5 million, compared with a loss of $101 million for the same period in 2008.
Mr Borghetti will take the reins on May 8.
[URL="http://markets.businessday.com.au/apps/qt/quote.ac;jsessionid=9B47D2A2EE32D52AADBB268C9685CD3F?code=vb a&securityType=0&descContains=0&section=summary&sortBy=0&submit=Search"]Shares in Virgin Blue (http://markets.businessday.com.au/apps/qt/quote.ac;jsessionid=9B47D2A2EE32D52AADBB268C9685CD3F?code=vb a&securityType=0&descContains=0&section=summary&sortBy=0&submit=Search) were little changed in early trading, gaining half a cent to 63.5 cents.
[email protected]

zzoott

1st Mar 2010, 22:51

After sitting thru a meeting of tech crew some time ago when he was asked a question relating to Virgin he replied that he would look at upgrading the cabin to a two class config and aggressively pursue more of the corporate market as well as upgrade the frequent flyer lounges. A very able man that allegedly did not like the bastardization of QF by Jetstar. He appeared to have a good relationship with staff and I think Virgins gain is Qf loss

stubby jumbo

1st Mar 2010, 23:13

Agree this will be Virgins gain.

Apart from the APA saga-Borghetti did a sterling job at QF. He ran Qantas Airlines as his own premium airline /empire. Working his way up from the QF mail room over the years meant that he was exposed to all sorts of people, shonks, processes ,products, initiatives and "marketeers". This experience will be invaluable.

His other asset is his Corporate Sales connections /experiences. City-Flyer,Lounge upgrades and Govt "contacts" will come in handy.

Also-he will have total control (apart from the Board)

My tip is that he will transform Virgin into Ansett mark 2. He's got the fleet, connections, leadership /motivational skills , energy, experience and biz savvy to pull it off.

The QF Board will rue the day that they cut him loose and chose a CEO with low cost , no frills and minimal aviation experience to run what was once an icon in the airline business.:ugh:

ratpoison

1st Mar 2010, 23:43

The QF Board will rue the day that they cut him loose and chose a CEO with low cost , no frills and minimal aviation experience to run what was once an icon in the airline business.
Will somebody buy that man a drink! :D

Mstr Caution

1st Mar 2010, 23:44

JB takes with him the inside knowledge as to where QF makes it's money & more importantly where it doesn't.

His experience in running Qantas’s airline business could help Virgin Blue’s stalled efforts to capture a larger chunk of the high-yielding business market from Australia’s largest airline.

Hopefully mainline staff will now see a focus on the premium product, competing with VB rather than it's own subsidiary.

Higs

1st Mar 2010, 23:45

You better hope he has a better run than the last QF exec to leave and run a major Australian Airline other than Qantas!!!!!!

Mstr Caution

1st Mar 2010, 23:49

an ex Cathay Boss had a go at it as well, but didn't stick around for long..

Pegasus747

1st Mar 2010, 23:51

the only good thing is that there is nothing that the current management dont know about Borghetti and hopefully the boards decision to pass over him for our "no frills" CEO will bear fruit.

The board would certainly have heard what Il Duce would have done if made CEO and they obviously preferred AJ's vision for the future of the Qantas Group.

As a Qantas employee i hope that they got it right!!!!

On the other hand perhaps a focus on a premium airline experience at Virgin will make Qantas lift its game. Our current "death by Napkins" domestic service offering my the "beehives" leaves a bit to be desired!!

stubby jumbo

2nd Mar 2010, 00:46

#7 (permalink)
ozangel

Join Date: Dec 2003
Location: BNE
Posts: 264
I hear Grimace from McDonalds is looking for work?

He might just be a shoe in, what with the Hamburglar in charge of Human Resources?!

He can't speak, and is technically a purple blob of jelly with no specific purpose, but his main selling point is 'No Decisions' is better than 'Bad Decisions'. He just might save VB some $$$!

Maybe Borghetti could be number 2? Working for Grimace would have to be easier and more dignified than GD?!

10th August 2009, 20:35 #8 (permalink)
porch monkey

Join Date: Jun 2007
Location: deepest darkest recess of your mind
Posts: 301
I'd be pretty surprised if Borghetti got it. Not because he isn't any good, I personally think it would be a pretty good choice. At the end of the day, those fisharses wouldn't pay a bloke like that what he'd rightfully feel is fair. So no....

10th August 2009, 20:44 #9 (permalink)
greenslopes

Join Date: Mar 2006
Location: brisbane
Posts: 307
James Hogan.

10th August 2009, 22:02 #10 (permalink)
stubby jumbo

Join Date: Oct 2006
Location: Perth
Posts: 322
My money is on these .....in descending order:

*JB
*Rod Eddington ( Sir)
*Gary Toomey
*Mr Ed

Do I win ??????

forgetabowdit

2nd Mar 2010, 03:40

Wow.

I'm not bowled over with news out of the Village too often, but this did it.

I tounge-in-cheek suggested it months ago to colleagues, but we didn't think it would ever be possible for the man who was so entrenched in his family airline of Qantas, the place that he poured his professional life into, to ever come and work for the 'other guy'. It just seemed too much of an ideological contradiction for him to abandon the airline that was his family despite the fact that ironically, they so swiftly abandoned him. I know that money talks and bull**** walks and all, but I have never had the impression that JB was the kind of guy to not have a higher level motivation to just the coin. I feel he has a vissionary type, internal company focus proved by his long life at Qantas.

I don't know many mates at QF that weren't dissapointed when he didn't replace Dixon. I don't know many that weren't worried about the direction that the QF group was clearly wanting to head when they appointed Joyce.

I must admit, I am extremely happy with this choice for us. I hope he has the scope to do the things that he was never given the chance to do at QF.

Time will tell, but my immediate thoughts are that 'everything's gonna be alright now'.

Forgetabowdit

Dubya

2nd Mar 2010, 05:31

Virgin...now has a CEO with so much to offer VB
...is replacing its B737 fleet over the next 5 years with a deal being negotiated with Boeing...
...has announced profits in the order of $65m and beyond for the next reporting season as well...
...a dedicated workforce that will respond to the enthusiasm under a new leader...
...VOz reportedly be in the black in the foreseeable future with a modern efficient fleet...

Qantas...is rejigging the inside of its ageing fleet..
....running around in Boeing dinosaurs....
....oh, yeah, they still have their pride....:eek:

I wonder if Qantas is shaking in it's boots....?

I think VB's future is rather healthy now that it has a full house...I'm off to buy some shares......:ok:

aveng

2nd Mar 2010, 06:20

is replacing its B737 fleet over the next 5 years with a deal being negotiated with Boeing...
...has announced profits in the order of $65m and beyond for the next reporting season as well

I wonder if VB cutting the old ownership plates off there aircraft and riveting on new lease company plates had anything to do with the profit that was announced?

JB always came across as a decent, quality driven sort of guy, which should be considered a threat to QF. :ok:

Wod

2nd Mar 2010, 06:47

I've always thought you need two competitive competitors in major Australian markets. Keeps both players mean and lean, and benefits the consumer as well. (Think Coles & Woolies)

International is harder. In Australian terms maybe 40 foreign competitors and only one and a little bit Australian.

So good luck to VB under JB.

I still think the QF group have them in a nutcracker with JQ driving min cost per ASK, and QF having a much larger full-service network.

And I still worry about the fish and fowl thing in VB. Configuration becomes an issue if you try to do Super Y, Standard Y and Cheap Y in the same airframe in all markets.

QF have always struggled with that Internationally, with differing configs for differing markets reducing fleet efficiency and adding administrative cost.

We shall see. So far VB have done better than I expected.

Dubya - one reason you can say QF have an ageing fleet is that they've been around longer. VB is a pup, which started out with short term lease aircraft.

VBPCGUY

2nd Mar 2010, 06:54

I think VB has uncovered a gem out of the rough, QF threw him to the wolves, we now have him to guide us through the next 10 or so years, Im very happy about that:ok:

Welcome aboard John.

DEFCON4

2nd Mar 2010, 06:55

He will soon be joined by Colin Storrie

Qantas 787

2nd Mar 2010, 07:02

JB's biggest asset is his inside knowledge - he knows so much about the QF product etc, that alone is worth his salary.

No doubt DJ have got the best candidate out there - just remember, Dixon basically gave JB an unlimited budget. The amount of money spent on the A380 product, the Customer Service Centre :yuk: was enormous - businesses can't afford that sort of spending anymore. I think he can do big things at DJ but DJ isn't going to be as generous with the money.

DEFCON4

2nd Mar 2010, 07:08

Customer Service Centre?
You will find that JB was outvoted on the Exceptional Centre.
He was never in favour of that

The The

2nd Mar 2010, 07:20

Qantas shares up 8c today. Does the market think this might be the return of the cosy duopoly? If they could just get rid of that pesky Tiger!

porch monkey

2nd Mar 2010, 07:28

First to admit it, i was wrong. Happily so too, i think!!

Cactusjack

2nd Mar 2010, 07:49

Servo,

Where will John lead us?? Who knows. I hope he brings some balance to the company and eliminates some of the Brettanisms we have to suffer.

So true. Finally DJ will have somebody who has a brain run the place,and perhaps run it in the right direction for the fist time in many years :ok: Good riddence to used baggage, nepotism and incompetence :ok:
I am glad JB has the 'must have's'.Perhaps this is the end of the DJ era of hiring idiots, brown nosers and Mcdonalds staff ? :ok: Time will tell.

JB spent many years as the QF Bridesmaid and yes, due to his not getting the reigns from Darth, there was no choice but for him to depart,thats Executive Management for you:=
However he will make a great leader at DJ,which is something they have lacked for years:ok:
And best of all is that he will also bring along some of his QF mates in the next 6 months,while cutting loose even more of the completely farcical deadwood high up in The Village, most should have been punted many years back.I look forward with anticipation to see JB scoop up all of DJ's 'scummy dross' and ditch it once and for all:ok::ok:

There are many parties taking place around the network today..Indeed, a good day.

Mr.Buzzy

2nd Mar 2010, 07:59

Sure, great news re. JB.
I'm interested to see how he steers the boat.
I think it's pretty piss poor to be slagging the last bloke though, granted the timing was pretty good but take a look at the show he has got onto the road:ok:

Hat, jacket..............

bbbbbbbbbbbbbbzzzzzzzzzzzzzzzzzz

Servo

2nd Mar 2010, 08:20

Mr Buzzy,

Not saying BG didnt do a good job, just that he or his staff kept on trying to reinvent the wheel over and over and over and over again, at the expense of areas that needed more attention. The nepotism and lack of respect has to be seen to be believed!

Certainly without his beer coaster and initial gusto I wouldn't have a job with VB...........

I certainly think that it has aged him more than 10 years though! I hope "retirement" is more kind to him.

Servo

Cactusjack

2nd Mar 2010, 08:21

Hilarious stuff,

I think it's pretty piss poor to be slagging the last bloke though, granted the timing was pretty good but take a look at the show he has got onto the roadhttp://images.ibsrv.net/ibsrv/res/src:www.pprune.org/get/images/smilies/thumbs.gif

Who is slagging ?.Simply some facts stated.It took more than one person to create the airline my friend.And if you think the demise in share price since launch is good value under the former leader then I guess each to their own opinion :cool:

Lets not turn this thread into a 'staff battle of opinion'.Lets get back to our farewell celebrations,the Titanic now has a new Captain and I am positive JB has the ability and experience.This is truly a great day for the airline,and shareholders.:D
Let the healing begin....

Mr.Buzzy

2nd Mar 2010, 08:28

Thanks Servo,

Certainly without his beer coaster and initial gusto I wouldn't have a job with VB...........

That's my only point. Well put.:ok:

bbbbbbbbbbbzzzzzzzzzzzzzzz

rescue 1

2nd Mar 2010, 08:55

I think you'll find under the reigns of John, significant change afoot - some rosey some not so. Good luck to all :ooh:

airtags

2nd Mar 2010, 09:44

stand by for DJ to put he emphasis on "airline" in the phrase new world airline. Good appointment and it will be QF's loss. I expect the middle ground to be quickly redefined
AT :E

lame1

2nd Mar 2010, 10:28

I wonder if JB will use his QF gold pass for air travel.

neville_nobody

2nd Mar 2010, 12:25

I think Godfrey created an excellent product for a small niche leisure airline...however that is not what is there now. Maybe JB can build on that and turn Virgin into a serious contender in the Asia Pacific region.

Dropt McGutz

2nd Mar 2010, 14:21

I wonder if Dixon and Gregg have submitted their resumes yet?

Jabawocky

2nd Mar 2010, 21:20

I wonder if JB will use his QF gold pass for air travel.

Of course he SHOULD....if they will let him!

You know...keep your friends close, and your enemies closer! All competitors sample the others product and pull it apart teste it etc...

Be funny to see what happened when welcomed aboard! :}

priapism

3rd Mar 2010, 01:15

Great strategic move on behalf of VB.

indamiddle

3rd Mar 2010, 04:12

JB welcome aboard any QF plane i am working on.
bought 14000 shares today @ .689 .
then i read the quote "you can make a small fortune investing in airlines..... as long as you start with a large fortune".
p.s. QF is still giving me shares, i keep selling them. "oh happy days"

Stationair8

3rd Mar 2010, 05:36

On would have thought the smart people at Qantas would have had a clause in JB's termination contract in it to prevent him from working for a competitor for at least two years?

ANstar

3rd Mar 2010, 05:44

Trent 972

3rd Mar 2010, 05:51

John Borghetti, in an airline management sense, mostly was
.......the smart people at Qantas........

breakfastburrito

3rd Mar 2010, 05:54

I'm pretty sure the non-compete clauses are legally unenforceable anyway.

Cactusjack

3rd Mar 2010, 05:57

On would have thought the smart people at Qantas would have had a clause in JB's termination contract in it to prevent him from working for a competitor for at least two years?

His non compete period ended in November last year.

Correct on both comments.

JB played his cards very well indeed. He has been joking with AJ and the Boston Kid over the past few weeks about the whole thing while remaining very 'aloof'. Even as late as Friday night AJ was saying that there was no way JB would be interested in the DJ gig and JB was playing along right til the stroke of midnight.

Also there is nothing 'untoward' about Colin's sudden departure. It is for genuine reasons under extenuating circumstances.

And so the cycle of aviation continues.........

Stationair8

3rd Mar 2010, 06:10

Branson must be laughing all the way to the bank.

Cactusjack

3rd Mar 2010, 06:12

RB started laughing the day Ansett fell over. His 'take' to date from the day DJ launched is 960 mil....

Stationair8

3rd Mar 2010, 06:33

Who said you can't make money out of aviation?

rodchucker

3rd Mar 2010, 07:42

You know, atlast we seem to have a good story about someone who acts with integrity and has found his true level. It is a bonus that he wasnt deemed worthy of those in ivory towers.

We dont need any more of what we have seen recently when boards decide individuals are bigger than the organisation itself.

JB doesnt need to always be popular but PLEASE do something to make us see that times have changed. Even us mere slf want to see something of which we want to be part other than a truly trashed brand that seems to be merely following its own self fulfilling prophesy.

Believe it or not, I was once a true follower but no more after the long and hard lessons.

Brilliant move by RB, BG and all, so give us something to do with our loyalty other than contempt and my guess is they will be there in droves.

airtags

3rd Mar 2010, 08:29

stationair8:
Q: Who said you can't make money out of aviation?
A: Certainly not my ex-wife!

............seriously JB is a good operator and from the few meetings I've had with him I would only wish him the best. He has demonstrated integrity and does back his people.

Look fwd to seeing his stamp on DJ - Definately a loss for us at QF

AT

PS: JB don't be afraid to wear a tie!

dirty deeds

3rd Mar 2010, 10:55

Hope the same thing that happened at QF when AJ got the top job, happens at VB, the Village gets its floors swept of the inept and childish parasites. I bet there are some very sombre and S%^T scared people hiding under the colourful and ergonomic office furniture using the company paper to update their CV's for their old job at Macca's and the Coffee Club.

I am not an overly optimistic person by nature, and the pilot at VB will not see many benefits from this new management except maybe greater job security!

Why would JB want to change any agreement he has with a group of pilots that give him a team that has an EBA which provides great flexibility at mid range salaries if not poor conditions like VA. He would have laughed and rubbed his hands when he discovered that an entire combined yearly salary of a flight deck to LA is paid the equivalent of a single QF Jumbo Skipper!!!!!

Probably the only thing we may see change is a better IT system, and after he has tried to use the VB staff travel system, an updated, truly online based and user friendly website may be implemented. After having used QF's staff travel system, JB will spin out!!!!!!

VB will most likely benefit form the Business market as his knowledge and contacts with the Mahogany set will surely be used.

On the surface QF did not seem to kick up a real fight to keep JB, is this a Trojan Horse that has just been wheeled into the Village compound? Time will tell! A few of the boy's have seen GD paxing on few flights with VB in recent times, is this all too coincidental?

But then again, the mail boy come good has been kicked out of home and "Hell hath no fury, like a executive scorned."

VBPCGUY

3rd Mar 2010, 21:19

Funny you say that DD as Rod Wilcock resigned yesterday from GM of Ground Operations.

breakfastburrito

3rd Mar 2010, 21:35

A few of the boy's have seen GD paxing on few flights with VB in recent times, is this all too coincidental?
Wouldn't you out of sheer self preservation? Given the warm & fuzzy feelings he engendered between staff & management at his former employer.

JB is a loss to QF & and a big gain to VB. He seemed like one of the few decent blokes on mahogany row.

Cactusjack

4th Mar 2010, 07:47

dirty deeds,

Hope the same thing that happened at QF when AJ got the top job, happens at VB, the Village gets its floors swept of the inept and childish parasites. I bet there are some very sombre and S%^T scared people hiding under the colourful and ergonomic office furniture using the company paper to update their CV's for their old job at Macca's and the Coffee Club.

Gold medal award for this statement.You couldn't sum up the place better than that !
And yes,we are all waiting eagerly to see if our prayers are answered and all the 'inept and childish parasites' are frog marched out the door. My guess is that rather than update their CV's (as they wouln't have the 'must haves' to make it elsewhere) they will be exercising their tongue muscles in preparation for begging to keep their jobs!It is always fun to see somebody lose their 'umbrella's of protection':D

But on the flipside,things are already like a breath of fresh area around Ergonomic Central,and I can tell you that there is partying in the corridores,people are eager to bury the dead and get on with business. There is a lot of energy that has been suppressed in recent years that is bubbling to the surface once more,all JB has to do is harness it:ok:

Toolongincruise

4th Mar 2010, 10:28

A word of caution to VB pilots.

Under JB and Qantas record profits in 2007 was born the Qantas Short haul agreement that has a B scale for new Captains.

Jetconnect was another cancer that was born when JB was manager of QF tech crew.

As a result it is a 12-15 year wait to a 737 command in QF now.

Do not be surprised to see the rise in Pac Blue flying.

This is the guy who got Qantas to sponsor the Scuderia Ferrari F3 team in Sydney so he could get his Ferrari fixed for free.

skybed

4th Mar 2010, 22:32

there has been changes under JB guard.:yuk:
B contracts for cabin crew
overseas bases for cabin crew
a very messy product domestic & international ( i think there are 7 different business class seats/products out there , old aeroplanes, )
numerous changes to ground crews contracts & conditions
loosing, or as many insiders think deliberatly disposing of many ground handling contracts
and so on..........

DEFCON4

5th Mar 2010, 03:07

I wonder what Qantas thought about John Borghetti succeeding Brett Godfrey at Virgin Blue?
Friday, 5 March 2010
Wouldn’t we all loved to have been a fly on the wall in both Alan Joyce’s office at Qantas’ HQ and when Geoff Dixon heard that his former first lieutenant John Borghetti had secured the top job at their nemesis, and thorn in the flesh, airline Virgin Blue.

I wonder if the words ”traitor”, “turncoat” or even “poacher turned gamekeeper”, passed anyone’s lips?

With Borghetti’s non-compete clause only expiring last November, and rumours that he was off to the Middle East, speculation about him being in the frame for the top DJ job was shrugged off as mere speculation by some. Especially within Qantas.

Others thought that John made the perfect candidate to take Virgin Blue into it next stage of “growing up”. Having said that I did doubt whether they would have the nerve to appoint him!

It is a great credit to Virgin Blue to see total transparency in a process like this, as it is rumoured that there was not a lot of love lost between Godfrey and Borghetti, but clearly the process has won, with best man getting the job.

Qantas has always been recognised as a leader in sales and marketing, with Borghetti having headed up that for a large part of his 36 year career with the flying kangaroo. Now those many years of skills and experience will be fully plugged into Qantas’ biggest competitor.

A great opportunity has presented itself to Borghetti. He will now able to apply some of the things he probably could not have done at Qantas, mainly because the culture was very different to Virgin Blue but also because he had a very dogmatic and strong CEO in Geoff Dixon.

I also think that Borghetti must be very excited at the prospect of running an organisation with an open, non-bureaucratic culture, a place where innovation and dynamism are the name of the game, potentially rather different to the apparent environment of his previous role. Another bonus must be moving to Queensland!

Brett Godfrey says that he looks forward to welcoming Borghetti and introducing him to the business adding, “John has a proven track record in the aviation sector... He comes with enormous knowledge and experience.”

“Importantly, I know he respects the Virgin Blue team and its culture... His understanding and participation in both the low cost and full service segments, has him uniquely placed to lead Virgin Blue in its next stage of development.”

This week must now be very a sweet one for Borghetti though, one might even call it “revenge”, with his taking over the helm of Virgin Blue also being announced just after the much smaller carrier reported a bigger profit than Qantas!

So Borghetti, sincerest congratulations to you and while Godfrey has left some very big shoes to fill, I have no doubt you are the man to fill them.

Industry Insider Commentary and Opinion by John Alwyn-Jones, e-Travel Blackboard correspondent

Source = e-Travel Blackboard: J.A.J

The The

5th Mar 2010, 05:58

Qantas has always been recognised as a leader in sales and marketing

Yeah, like rolling out "I still call Australia home" again and again and again.

Absolute geniuses!

GAFA

6th Mar 2010, 05:52

With a new leader and the 10th anniversary of the airline this year I think we will see some big changes at Virgin Blue.

There will be an increase in regional flying with a turboprop added to claw away at the dominance Qantaslink has in the market. Regional flying has always been big money for Qantas and JB knows this and he will want a share of it.

The E-jets will start new markets and perhaps return to some old ones (Alice Springs and the ISA). You may also find the E-jets operating the ½ hour flights on the golden triangle as at the moment Virgin only operate every hour and only a few flight on the ½ hour in some peaks.

A new uniform for all staff, 10 years with the same style uniform is way to long.

Proper business class added and changes to economy.

Best Rate

6th Mar 2010, 22:19

Just watched the Business program on the ABC and interested by JBs comment regarding a 3-year performance 'bet' with SIR RB...

VB will certainly be in for a shake-up - hopefully it's a positive one...

Smile and wave boys, :ok:

BR

Ngineer

7th Mar 2010, 03:09

Yeah, like rolling out "I still call Australia home" again and again and again.

Crew sourced and based overseas, aircraft maintained overseas, Irish CEO....

Yeah, about as Australian as the Doner Kebab mate.:ok:

abc1

7th Mar 2010, 03:38

The etiquette at VB is so ingrained it can't be changed. Just look at their adds.
New cabin crew start on 30k, premium experience straight out of Mcdowels.
Proper business class?No they announced a three class economy product instead.

windytown

7th Mar 2010, 04:32

The developments with DJ's products are always interesting. A couple of times a good idea seems to have had been implemented in ways which surprise me and don't seem to pick up on the lessons others have learnt.

AirNZ has reduced 737 and A320 seat pitch in both planes and reversed it the second time on the 737 back to a min of 30 inches. The lesson learnt seems to be don't drop below 30" and to sell the benefits of space plus while treating the basic economy seat of 30" as standard.

With the 738 I suspect there is room/scope to reduce the seat pitch of some rows down to 30", especially if they reduce the pitch of the blue zone (exit rows), as AirNZ did in the back half of the A320 economy when they went to 142 seat in economy. However AirNZ was a lot quieter about it than DJ are (having tried the layout at Freedon Air first). Actually DJ seems louder about the fact they are reducing seat pitch than I recall them advertising the extra seat pitch they have been offering above the competition.

To me the message should have been communicated as part of an overall product revamp and rebranding where it was sold as our most loyal customers and those on higher fare tickets get the better seats which have an extra 2 inches leg room, access to lounge, priority ... etc. All our other economy seats are industry standard (ie 30 inches) but we offer frequent flyer points, modern planes and a good choice of buy on board food etc.

Cactusjack

7th Mar 2010, 05:22

DJ need to do a lot more with their structure before they come even close to hitting the target.

For example :
1) Ground Services covering ramp and check-in.
QF - For example has been trimming away at the fat for some time now. Gradually ports are being outsourced to third party providers,and it won't be long until mainline ports are tendered out completely once and for all.
JQ - Use third party operators in regional ports,and EGH in mainline ports.A far leaner and cost effective structure than QF and DJ who have multiple layers of managers,supervisors and the list goes on.Pilots operate on a lower pay scale and structure which DJ can't compete with (except with V Australia).
Tiger - Again,lean and mean in structure but cost effective.
Tiger and JQ also are lean in every single aspect inluding ops control and lower and mid level management,which is basically non existent.Pilots earn less than DJ and JQ !
I understand most of you will argue that DJ still retains 'flair' and a happy smile at check-in etc,but that won't earn them additional profits in the long term when fuel and labor are the two biggest costs.
As for DJ's collection of managers,supervisors,specilaists and assorted footstools that have ballooned at a ridiculous rate over the past 6 years, this area needs urgent attention by ditching this excessive pond of wasted resources and better utilising that money on the product itself. Then again DJ has a history of approving this expansion of plebs and brown nosers should be walked out the door for allowing such a bad investment of resources and hang their heads in shame.
Then again,the same incompetents have built a three class system that has not worked and never will work.
Interesting how some people have stuffed up hedging prices,stuffed up airport structures,stuffed up people's superannuation and even forget to fill in aircraft warranties which cost them dearly, yet still retain their lucrative packages and strut the hall's of the village like catwalk models seraching for a mirror.

The Village is another location that contains copious amounts of deadwood soaking up precious money.My advice for JB when he comes onboard is check under all the manager's desks,cupboards,hiding areas for all this excess baggage and turf them out in the waste where they belong.Ask yourself, with a mainline airport for example,do you need an Airport Manager,an Operations Manager,AMCO Manager,3 x Ramp Managers, 3 x Guest Service Managers, then multiple layers of supervisory roles under that, when an outfit like Tiger and JQ run the same operation with 80% less mangement roles ? C'mon JB, grab the broom.

I might also suggest JB speak individually with as many 'frontline' people as he can,without having any 'minders' or bottom dwellers hovering over him and preventing face to face honest and open conversation. He may be surprised at what he hears...

highland cow

7th Mar 2010, 12:56

John, get rid of the beige uniforms ASAP, the colour may match RB's dyed hair but will never come back this century. Get new CC that have never said "do you want fries with that". The low fares won't last for ever so try and attract the more average traveller with a more mature style in the cabin. New livery wouldn't go astray rather than looking like a can of flyspray with wings.

VBPCGUY

7th Mar 2010, 14:01

CJ agree with what your saying, I sent you a PM a week or so ago I would be interested to hear your reply.

Cheers.

Cactusjack

8th Mar 2010, 07:32

highland cow,

John, get rid of the beige uniforms ASAP, the colour may match RB's dyed hair but will never come back this century.

My concern is that if you get rid of the existing uniform, you may get rid of the 'VPL" !! Do we really want that ?

VBPCGUY

8th Mar 2010, 19:04

CJ no we dont want that:{

Pedota

8th Mar 2010, 20:22

As reported in Airline Transport World last week . . . looks like non-stop flights to London and New York are being considered (see bold/italics below – my emphasis).

Borghetti to lead long-haul era at Virgin Blue

Wednesday March 3, 2010
Airline Transport World
By Geoffrey Thomas

In a clear sign that it is moving its product offering up-market, Virgin Blue yesterday confirmed widespread speculation and appointed former Qantas Executive GM John Borghetti, 54, to take the reins from retiring founder and CEO Brett Godfrey.

Borghetti, who will take over in May, would not discuss his plans when asked by ATWOnline, but it is widely believed he will endorse a plan to buy 777-200LRs for the group's V Australia subsidiary in order to launch non-stop Perth-London Heathrow and Sydney-New York JFK service. LHR-SYD also is a possibility (ATWOnline, Nov. 6, 2009).

Qantas examined the concept in 2005 but decided against it since the aircraft would have been a new model in its fleet. V Australia, however, is a 777-300ER operator, has six options to exercise and could take delivery of a -200LR next year.

One analyst told this website that the ultra-long-range concept would be a "perfect fit" for Borghetti and Virgin Blue. "Non-stops are what Australian business traffic wants and Qantas will not be able to match V Australia. It will give them a clear point of difference going forward," the Sydney-based analyst said.

Virgin Group Chairman Richard Branson, who is Blue's largest shareholder, has told ATWOnline that he has "serious interest" in operating non-stop between LHR and Perth and that the service almost certainly would be a joint V Australia/Virgin Atlantic Airways flight.

At Qantas, Borghetti developed one of the world's best domestic economy products and it is expected that he will reshape Blue's domestic offering with an upgraded and dedicated premium economy aimed at the corporate market as the airline strives to capture more high-yield traffic. He resigned from QF last May (ATWOnline, April 8, 2009).

According to Centre for Asia Pacific Aviation Chairman Peter Harbison, "Yield management is an art and [Borghetti] is an artist. Borghetti is a positive for Virgin Blue."

Godfrey told this website last week that the airline will start taking delivery of 50 737NGs next year. Aircraft will feature three economy cabins--premium economy, economy and economy lite. The latter option will feature less legroom and is designed to compete with budget carriers (ATWOnline, Nov. 6, 2009).

stubby jumbo

9th Mar 2010, 00:10

JB has always been a fan of the Tripler......especially the 777-200LR.

I was in PER in 2003 when Boeing sent the 777-LR to PER for a PR exercise. It was talked about then -that it could do PER-LHR ( at a pinch, with pay load restrictions) but could easily do the LHR-PER ( even with etops considerations)

When JB was in the Base not long after this event-the question was asked-"will QF be getting them??"
Answer- ="serious considerations..........and he said he really likes what it can do" .
We all thought-Great ! .....as this would give the Base a long term -long haul future.

Alas....The rest is history:{

Reading between the lines-it appeared JB was rolled by Gregg and his accountants to go for the "cheaper option" :ugh:

So good luck to JB / Virgin.....if it comes off. It will be a bonus for WA.......especially for the once loyal QF punter who when he/she wants to go to JFK.....they have to take a deep breath, drop a few Valiums and transit through a Domestic nightmare aircraft change in SYD then put up with THE HURT LOCKER routine transiting LAX.

SYD-JFK .......now we're talk'n:D

Joker 10

9th Mar 2010, 02:44

Something is working VB shares today 74 cents

Cactusjack

10th Mar 2010, 10:31

Something is working VB shares today 74 cents

That is because BG is leaving.Pretty simple really.The day JB sits in that swivel chair as the head of Ergonomic Central I have no doubt the shares will jump another 10 cents! Share markets tend to react positively to good news!
Since the sudden departure of RW as GM (the details behind the reason behind his departure have been leaked and an internal investigation has commenced),there has been some cat fighting over who has the 'must haves' and deserves to fill 'acting GM role'.Inside word from deep within 'The Village People' is that Mr Daley has successfuly trumped the other 'unsuccessful candidate' for the position. It has also been suggested that the other individual would be wise to consider a future external to DJ, because as soon as JB comes onboard, it is bye bye. Perhaps Mcdonalds is an option more closely suited to this individuals abilities ?

Finally,can anyone confirm what role 'Professor Klump' has secured within the upcoming structure change ? Word is that he too is 'walking the green mile' ? If any of these rumours come to fruition you can tack an extra 10 cents on to the share price!

Keeping the air fair

highland cow

10th Mar 2010, 11:06

Sorry about that, forgot about the VPL. What about same material but different colour

Stationair8

10th Mar 2010, 20:37

Interesting article in The Age last week, about Branson picking a winning with John Borghetti.

mikk_13

10th Mar 2010, 21:59

Flying Europe direct Oz sounds like a winner to me. All they need to do if align the schedule to have jets arrive from all the capitals a few hours before the departure time to feed the route.

I think the problem is- who is going to want to sit in a econ seat for the 18 hours?
Do you think you could make money by flying an all premium config, feed the route using VB's econ 737s. For me I would love a 'low Cost buissness' style set up, with a bit of space and something to watch. I think if they could set it up so you fly econ to perth on a day flight then buisness to europe for a price slightly higher than the very expensive Q or singa econ, it would be an absolute winner and they would dominate. I think most people don't fly business for the lounges and the fine dining, for me it is all about the space and having a comfy big chair. Without all these extra costs, surely vb can put together a product that is innovative, value for money and competitive.

And also wouldn't Darwin be closer to EGLL?

Red Jet

10th Mar 2010, 22:18

wouldn't Darwin be closer to EGLL?
Yes - Darwin is 333 NM closer than Perth, but the lack of local market in DRW makes PER better suited. The 200LR can operate PER-LHR and LHR-PER with a full load year round and Perth is of course also a destination in its own right, with a Million & 1/2 local punters, yearning to escape the desolation of our western shores:}

stubby jumbo

10th Mar 2010, 22:32

Too true .......Red Jet.

I can tell you that the Perth Punters would love a PER-LHR direct service. Qantas has only a meagre share of the international market ex PER due to the glut of other carriers.

Most people here are over the transit in SIN,HKG or Dubai.....as it involves an aircraft change. ! They still yearn for the days when BA use to do a daily PER-SIN-LHR service every arvo -same aircraft ( BA pulled out in 2002)

WA was ( and for some :hmm:) always will be an Ansett state...... since MMA. Most couldn't give a rats about supporting QF. So if V-Aust offer a better product.......DIRECT. :D:D

VBPCGUY

11th Mar 2010, 03:18

cactusjack Since the sudden departure of RW as GM (the details behind the reason behind his departure have been leaked and an internal investigation has commenced)

I also thought that was very sus, Martin Daley is now confirmed as the new GM of ground ops.

AirborneSoon

12th Mar 2010, 02:49

I think if they could set it up so you fly econ to perth on a day flight then buisness to europe for a price slightly higher than the very expensive Q or singa econ, it would be an absolute winner and they would dominate.

Sure I'd like to buy a Mercedes for around $1500 too but it's not like that's ever going to happen. :ugh:

They still have to cover the cost of fuel, supplies, staff, wear and tear on an aircraft and all the rest of it, maybe even make a profit while they are at it. :rolleyes: The trouble is, everyone wants a fare cheaper than the local bus but they also want champagne and caviar too. Compare a $15,000 first class fare to the cost of chartering a private jet and it's a bargain. But business and first will never be "slightly higher than" economy for the sheer economics of it. You can't just quarter the number of seats and only charge a little more than before without going broke. :ugh: That tiny cabin with the lucky 12 seats in it, would otherwise house 60 or more economy seats. Maybe that's why J fares are what they are.

And the trouble with providing a watered down business class (smaller space, less than top shelf facilities and menu's) and charging lets say twice the price of economy (instead of the usual 7 times the price) is that people complain. They compare your cheaper biz product to the full priced version and think they are being ripped off. When in fact, they are getting the level of comfort they are paying for.

mikk_13

12th Mar 2010, 06:49

Sure I'd like to buy a Mercedes for around $1500 too but it's not like that's ever going to happen.

And this is why it will be a long time for V oz to be a player. They don't offer anything different to any other airline. Its just the same old.......

Air Asia is able to provide the old style buisness class seating going from the Goldy to kl for just over $1000. How much does this cost with Q? I bet it costs more to fly econ with Q than premium whatever its called with Air asia.

Would you choose to fly econ with Q and sit like a sardine or premo in a big chair with air asia? Are you saying air asia doesn't make a profit with the premium seats?

Don't get me wrong, I deffinately do not think voz should be the next long haul ryan air. But if air Asia can charge what they do, I am sure V oz can make a profit running a full premium product at a price that people would be willing to pay, Ie. not 10g with q buisness.

The first airline which works out how to do this will be very successful.

ferris

12th Mar 2010, 08:57

I think it's a poor strategy to be chasing the bottom end of the market- because it's all about price (and thereby limiting possible yield).
Anyone who travels regularly- especially business- are far more interested in the total trip time, and the timing of arrival. Shave a few hours off the total trip time, and it WILL be a winner. QF would be forced to react.

Romulus

12th Mar 2010, 12:31

Anyone who travels regularly- especially business- are far more interested in the total trip time, and the timing of arrival. Shave a few hours off the total trip time, and it WILL be a winner. QF would be forced to react.

I'm interested in the condition I am in when I arrive.

Currently this means I put serious thought into making an A380 trip wherever possible. Hopefully when the 787 comes on line that will expand the routes where modern levels of comfort are provided.

AirborneSoon

12th Mar 2010, 21:00

I'm sure Air Asia do make a profit. It's easy to get passengers when the prices are low, but at what cost? Profits are slim and any adverse movement in fixed costs could wipe out the company's stability. Just look at Tiger as a group, in biz for 6 years and yet to turn a profit. Sure they are flying lots and planes and people around the globe but as of yet, no real money out of it. And you really have to wonder, what's the point?

I agree that economy rides these days are not the pick of the bunch, I also agree that I would love to fly in comfort for less. Yet there has to be something in it for the airline at the end of the day. It's a tough proposition really because an aircraft comes with certain fixed costs that levels the playing field and every operator has to try and come up with a package within those fixed costs to draw passengers.

Whats the point of difference? Scheduling, ports, colour of the decor, and crew? All very difficult things to try and make a point of difference with. Square inches on an aircraft all cost the same, at least until some brilliant person manages to design one that has more square inches for less money and doesn't use as much fuel.

The all premium model has been ventured into and as of yet, there just isn't enough demand for it. EOS, Silverjet, Maxjet all tried with a biz class significantly cheaper than their traditional competitors and they all went under on very busy routes. It seems that the majority of people would rather be a sardine if it saves them 50% on the price of the ticket. And I've got to admit for myself that even Air Asia's own economy product canabalises their premium product. If I am looking at $1k for a premium ticket to KL or $300 for an economy I'm tempted to bite the comfort bullet and save $700 on my airfare.

I do hope however that Borghetti finds a new way to sell a better seat. I personally would love to see that too.

Cactusjack

13th Mar 2010, 01:16

C441

13th Mar 2010, 03:17

Shave a few hours off the total trip time, and it WILL be a winner.

When these "into-wind" northern winter proposals have been explored before, it was apparent that most of todays aircraft would have to fly at max range cruise speeds in order to arrive with the appropriate reserves. At these speeds it meant the time lost over 7000+nm equated to around 45-60 mins, negating the time saving benefit gained by operating non-stop with a lesser payload to accommodate the extra fuel.

Cactusjack

14th Apr 2010, 12:14

New General Manager of Ground Operations was appointed today.

Will be interesting to see how this individual handles the task.Most money is being bet on this person being a complete failure.At least a couple of other imbiciles who threw their hats in the ring didn't have the "must have's" and were overlooked,which has many other people jumping with joy down at Ergonomic Central !

Nevermind,there is still hope and optimism that JB will be able to sort out the wheat from the chaff and put a broom through the top layers and finally throw out the remaining garbage.
Must be time for all those who have hidden under specific protective umbrella's for the past decade to start preparing their resume's.The clock is ticking.......

Miles to go

14th Apr 2010, 23:32

Hey JB -

Congrats on your new job!

Would love to see the expression on your face as you take the measure of the Inepts who spend their time running around busily avoiding making decisions.
If you'd like a list of who to target with your broom, send me a private message. More than happy to help.

Good time to buy shares in the Tie Rack :)

Cactusjack

15th Apr 2010, 23:43

Poor JB. I think he may be expecting to come into an organisation which has some fairly savvy,intelligent and worthwhile Managers at the helm ! Won't he be dissapointed :=

I hope he has a huge broom,there is a lot of cleaning to be done. He also needs a dust pan and some tiny little brushes as the cockroaches have already started hiding in all the nooks and crannies hoping to be missed during the upcoming clean out :ok:

They are already panicking as they know that they are overloaded with people who have the title 'Manager' (undeservedly) next to their name, which in most cases is a complete farce. So they have started changing descriptions and placing 'specialist' or 'leader' to peoples names instead of 'manager' because they know JB will be culling unnecessary management positions when he starts wielding the axe.My suggestion to JB would be to look at all titles or positions with 'manager', 'specialist' and 'leader' and consider dumping the entire lot, as most of the roles are farcical,unnecessary or simply mates rates appointments. Hell,if anyone deserves to have mates working their it will be JB, so I hope he has lined up some good mates,former colleagues and people with actual airline skills to run the place !

Rumour already has it that the days of hiring Mcdonald's and Bunnings staff in supervisory roles is a thing of the past :ok::ok: