First QF B787s to be given to Jetstar Asia under Singapore AOC

[DrPepz]

Jetstar on-track to be the first LCC to fly Dreamliner | CAPA (http://www.centreforaviation.com/members/direct-news/jetstar-on-track-to-be-the-first-lcc-to-fly-dreamliner-68522)

20-Feb-2012 Jetstar passengers can look forward to experiencing the Boeing 787 Dreamliner, with Jetstar on-track to be the world’s first LCC to welcome the aircraft into its fleet.

The B787-8s will gradually replace the Airbus A330s currently used on Jetstar’s long-haul international routes from Singapore to Melbourne, Auckland and Beijing. The new aircraft will be configured with Business and Economy Class cabins.

The Jetstar Group is expected to receive the first of 15 B787-8s as part of an order of 50 Dreamliners by parent company, the Qantas Group. Singapore travellers will be among the first Jetstar passengers to fly on the Dreamliner from its expanding Southeast Asian hub.

Group CEO Bruce Buchanan said Jetstar already had three of its 11 long haul aircraft based in Singapore and expected this number to grow over time, particularly as its B787s were delivered.

“Innovation has been central to Jetstar’s success and so it’s a natural fit for us to be the first low fares airline to fly the Dreamliner,” said Mr Buchanan.

“This aircraft will deliver significant savings in fuel and maintenance costs, which is the kind of innovation we rely on to help keep our fares low.

“It will deliver a quantum leap in passenger comfort through improvements like larger windows and better cabin pressure. Passengers can have this experience for less with Jetstar, which is why we refer to ourselves as the smart choice.”

The Jetstar Group already has one of the youngest fleets, with an average age of four years compared with the industry average of about 11 years.

Mr Buchanan said Jetstar was making strong progress towards placing three long-haul aircraft onto the local Air Operators’ Certificate in Singapore.

“Strengthening the long haul capability of the Singapore hub is key to tapping into growing markets across Asia and linking to our other networks, like Jetstar Japan,” Mr Buchanan said.

[Ken Borough]

Gobsmacking stuf! :E

[DrPepz]

I am interested to know how they are doing on SIN-AKL. From daily, they cut it to 6 weekly then 5 weekly and now 4 weekly from March. SQ is double daily AKL in Northern Winter and daily Christchurch year round.

SIN-Beijing, Jetstar arrives into Beijing at 0100 and leaves at 0250, or some ungodly time like that. I wonder how popular that is, against SQ's 4 daily or Air China's 3 daily.

With the rumours of Jetstar operating AKL-LAX, Jetstar Asia can operate SIN-AKL-LAX under a Singapore AOC with Singapore based crew, because Singapore, NZ and the USA have complete open skies for 3rd, 4th and 5th freedoms.

When Singapore and Australia were negotiating for full 3rd and 4th freedom open skies in 2001, I don't think either government envisioned that QF would set up a proxy airline in SIN and masquerade as a Singaporean carrier. (Singapore tolerates it though.) How is the regulatory framework applied? Does Singapore have the authority to ground Jetstar jets? If Singapore in theory grounds Jetstar Asia, can Jetstar then assign the planes to Australia or have them wetleased to Jetstar Australia? Who certifies the pilots?

This is quite different to Tiger Australia which has a separate fleet from Tiger SIN. Jetstar SIN and Australia swap planes around and things like that, which surely must make the regulatory framework rather tricky.

[RFN]

Nothing new in relation to where the 787's were going...

With the EBA negotiations only a year or so away it will be interesting to see who sacrifices who for the widebody and the promise to be the under-cutters under-cutter!!!

:yuk::{

[Dragun]

LCCs with business class still doesn't make sense to me.

[stubby jumbo]

Gobsmacking stuf!

Oh really Ken.???

Hardly. This so called strategic revelation was conjured up in the Dixon era.

Who gives a stufF (note 2xf's in stuff -Ken) anyway?

The Clowns running this joint are hell bent on just ONE strategy.

Punt.... Long Haul to the point of oblivion.

That won't even be .....................Gobsmacking:rolleyes:

[Mr Leslie Chow]

I wonder if the complete dissatisfaction with the cancer will ever reach critical mass and the masses (pun intended) start avoiding it in droves but also let people know how much it sucks.

Isn't there a website that takes the piss out of failstar??

Pass it on :ok:

[Angle of Attack]

BB <-- LoL!

What a fool..

[angry ant]

One guess as to which 787, I won't be travelling on, nor will all my friends, whom I advise.

A A

[gobbledock]

Folly. Boston Bruce, Ken and friends have spent too much time inhaling chlorine fumes in AJ'a spa!
Big deal, bigger windows and better cabin pressure, not to mention BB's 'innovation'! What no mention of the other 'products' that come with this innovative idea? You know, aircraft never running to schedule, lousy service, cadet in the RH seat perhaps, passenger behind you with his knees embedded into your anus, U/S IFE, that sort of 'innovative' stuff??

I am so thrilled to hear Uncle Fester preaching the same rhetoric as the Gnome about modern technology/less maintenance. I can't wait to see the first 'composite aircraft' damaged by cheap ground handling labor! We will see just how cost effective the new aircraft type can be, to be sure......

[Sonny Hammond]

So where's the big hoorah in the press about "Australian" investment dollars going offshore for the benefit of another country?

Like everything else, we've sold the lot.

[DrPepz]

I think from the way the whole Jetstar Asia thing is structured, where QF holds 49% and Dennis Choo holds 51%, which is entirely funded by QF through a loan to Dennis, with Dennis' shares pledged against the loan - in effect QF controls the entire operation and all profits (if there are any - that is) from Jetstar Asia accrue to QF. They would have many back to back agreements to ensure that this is the case, and you would find that under IFRS they consolidate Jetstar Asia revenue into QF Group accounts, line by line.

Sure - there is a Singapore CEO, but that CEO's reporting line is into Bruce.

What's interesting though is how they split the accounts. 9V and VH planes operate 3K or VF or JQ coded flights to and through Singapore, and some flights from SIN to DPS to PER are staffed with part Aus based crew part SIN based crew, sometimes with VH planes, sometimes with 9V planes - I'm not sure what accounting standards are used to accrue costs and revenue between 3K and JQ.

[jarden]

I was expecting this decision, I would have prefered the 1st 787 route be SYD-SFO but thats only a dream no chance to expand QF International

[givemewings]

New equipment going to the loco while Domestic suffers.... big freaking surprise there! :rolleyes:

We saw it happen with the A330s while the old rattler Rolls Royce 767 soldiered on, lets just make the long-suffering FF's suffer a bit more.... nice business strategy....! Anyone who thinks the agenda isn't to sacrifice Q at the orange altar has rocks in their head...

[600ft-lb]

I'm not sure what accounting standards are used to accrue costs and revenue between 3K and JQ.

The same standards that are used to accrue costs between qf int and qf dom when a good portion of the qf dom flights are carried out by int config aircraft, air crew, cabin crew, aircraft arriving from an int flight with 10 ton of fuel on board prior to an uplift of 10 more for the dom sector (free fuel) etc

In other words, whatever segment they need to be profitable to suit thier current agenda, is profitable.

If they were going to allocate the 787 to the segment of best ROIC like they said they would in their investment briefings, it would be going to qf domestic doing bne/syd/mel - per without a doubt. Instead theyre going to an operation that will facilitate the even further reduction in flying for qantas international and qantas's current captain at the helm will get his long dreamed of hub in the middle of the earth.

[73to91]

lets just make the long-suffering FF's suffer a bit more
givemewings. you mean like this?


Qantas rewards set to be devalued



Qantas Frequent Flyer points are set to be devalued as the airline faces pressures from the Federal Government’s carbon tax.

Around eight million frequent flyer members will be affected by price hikes, with Qantas and Jetstar customers already being hit by more price increases last week as a result of higher fuel costs and the carbon pricing scheme, the Australian.

Qantas Loyalty Head of operations Sid Gokani warned that Qantas and Jetstar customers will be affected by the carbon tax and fuel costs.

"Earlier this month Qantas announced that future ticket prices for Qantas and Jetstar passengers will be impacted by higher jet fuel costs and the Australian Government's carbon pricing system," Mr Gokani said.

"As a result there will be increases to the points required when paying for surcharges, fees and taxes on Australian and New Zealand domestic and regional Classic Award flights."

From 01 April 2012, the loyalty programs 8 million members will be charged an extra 350 points when paying for surcharges, fees and taxes on flights within Australia and New Zealand increasing to 750 on 01 July 2012.

A Qantas spokesperson said the airline is not making additional money from the points increase.

“It simply reflects the additional costs associated with the high cost of fuel and the introduction of the carbon tax."
Qantas rewards set to be devalued - Airline News - etravelblackboardasia.com (http://www.etravelblackboardasia.com/article/81877/qantas-rewards-set-to-be-devalued)

[gobbledock]

Qantas rewards set to be devalued
Everything to do with this 'sinking ship' is being devalued at the hands of a human wrecking ball, except for executive salries and bonuses. Naturaually their value is on the up and up, to be sure...........

[givemewings]

It's enough to make you :yuk:, 'nuff said.

The fact that these clowns even think they can run this company beggars belief. Year after year ignoring input from those staff on the front line of how to improve things and keep the customer loyalty.

Of course it all makes perfect sense when looked on from the perspective that they planned to run QF down all along, in favour of the orange army....

Give ti a few years, everyone will soon be bitching when they have no choice but to fly a loco or a loco with J class. Was talking to a Japanese colleague the other day and she was horrified at the thought that soon Jetstar would be the only Aussie carrier with a prescence in Japan (if it isn't already- haven't kept up with the changes) She'd hardly even heard of it until recently, and then stated that most Japanese she'd spoken to about it viewed it very suspiciously and would never book with them...

[WorthWhat]

Well, according to Ben at Crikey

Several very well informed observers think that Qantas; having been able to establish its Jetstar Asia franchise in Singapore as not being in breach of the Qantas Sale Act, will strengthen that operation by one of a number of means, including spinning off Jetstar into a company headquartered in Singapore, and even floating off at least 51% of it on the Singapore Stock Exchange, and possibly holding a permitted equity in Qantas.

Qantas intends to base all of its 50 Boeing 787s inSingapore, where it has already based a substantial A320 fleet and a smallnumber of wide bodied A330s. The first 15 of those 787s are currently intended to be used by Jetstar. Those 787s ultimately required by Qantas could be leased to it and maintained in Singapore.

The building up of the Qantas group investment in Jetstar in Singapore has long been taken as a given path for Qantas by many within Qantas in various capacities. It did not escape notice when Qantas CEO Alan Joyce was giving testimony to the Senate Committee inquiring into proposed toughening of the Qantas Sale Act early last month that he several times referred to the possibility of setting Jetstar free to succeed by selling itoff should it not get its way on such issues as rotating Asia based cabin crew through its domestic network, or having unfavorable amendments to the actpassed into law.

After the failure of the Malaysia solution to the claimed woes of full service Qantas, what Qantas could do with Jetstar, and what Virgin Australia could do with stronger equity partners, such as Etihad,are the defining questions for Australia’s major airlines, assuming of course that neither of the mutually exclusive calamities of a fuel price breakout or global financial crisis were to occur.

[Sunfish]

I think its time that the Federal Government took its business elsewhere.

First thing is to prohibit members of Parliament and the public service from using the chairmans lounge.

Second is to prohibit personal accumulation of frequent flyer points by public servants on official business travel.

Consideration should also be given to making FFP's taxable when accumulated during business travel.

Then put the Governments travel requirements out to tender.

Qantas obviously wants to be Australian in name only. We should return the favor.

[ejectx3]

Something pigs something something fly

[1a sound asleep]

Jetstar to get a $2 billion boost to profits from Boeing 787?????????

INDIA'S aviation ministry has asked Boeing to pay just under $1 billion to flag carrier Air India as compensation for delays in delivering the 787 Dreamliner aircraft, a ministry official said today.
"We met Boeing two weeks ago and they agreed to a [compensation] amount of up to $500 million, but we have asked for more,


Read more: Boeing asked to pay Air India nearly $1bn after Dreamliner delay | News.com.au (http://www.news.com.au/business/breaking-news/boeing-asked-to-pay-air-india-nearly-1bn-after-dreamliner-delay/story-e6frfkur-1226299648180#ixzz1p4zcGXcJ)

So considering Qantas has double the Air India order where is this little bounus going??????????????????????

[DJ737]

The little bonus won't actually exist as Boeing won't actually pay any real money, it will be used to pay for the aircraft, so the QANTAS group won't have to borrow any money to pay for $2 Billion worth of airplanes, so Jetstar will get the aircraft for nothing, if and when the QF airframes are delivered then QANTAS will pay for them. :E

More free aircraft for Jetstar.

[Captain Gidday]

Now there's a good business model. Outsource everything, move your core business offshore. Disband your loyal workforce at home, who up till now have done a sterling job. Then when it all goes pear shaped, start giving your product away for free.
Ahhggh, the business model describes both Boeing and the Jetstar/Qantas Group. They both have a management disconnected from the workplace, too. Funny that.
[Boeing corporate headquarters are in Chicago].

[neville_nobody]

The irony for Boeing is that it would have been cheaper to do it themselves than outsource the 787.

[Captain Gidday]

Exactly. Just as it would ultimately be cheaper and more efficient for Qantas management to do the same, rather than outsource to Asia.

[Taildragger67]

However Boeing appears to have learnt something of a lesson (http://www.flightglobal.com/Features/Boeing-777-special/Wingspan/):

After the painful supply chain woes of the 787, Commercial Airplanes chief executive Jim Albaugh has suggested that Boeing should "never outsource" wing design and manufacturing to protect its intellectual property.

[Longbow25]

Pity we can't outsource those management parasites and their obscene pay packets to a third world entity.

Maybe the little Irishman and his friend might head back from whence he came.:mad::mad::mad:

[LeadSled]

Folks,
Expect all the QF group B787 to be based in Singapore, with any on the VH- register still administered by CAAS under a Singapore-Australia ICAO 83bis agreement.
Tootle pip!!

[...still single]

After the painful supply chain woes of the 787, Commercial Airplanes chief executive Jim Albaugh has suggested that Boeing should "never outsource" wing design and manufacturing to protect its intellectual property.

Our next contestant is Mr Jim Albaugh from Chicago. Specialist subject -the bleeding obvious.

[maggot]

Exactly. Just as it would ultimately be cheaper and more efficient for Qantas management to do the same, rather than outsource to Asia.


onshoring is the new trend, as usual, we are a decade behind the world - hey, look how cheap china is!
The reality is that onshoring is being taken very seriously by many companies. The cost benefits of the whole china project for many are evaporating and the headaches that come with the territory are proving to not be worth it. I know someone personally involved with a project doing exactly this for a fairly large corp.

[neville_nobody]

This article would suggest that everyone in Boeing was telling management to keep the 787 inhouse however it was all the senior management who wanted the project outsourced.

Boeing 787 | 787 Dreamliner teaches Boeing costly lesson on outsourcing - Los Angeles Times (http://articles.latimes.com/2011/feb/15/business/la-fi-hiltzik-20110215)

[Iver]

So, let me make sure I understand this situation.

Is the article saying that Jetstar Asia pilots (i.e., those based and living in Singapore) will be trained on and fly the first 3 787s? Does it imply that all 15 original 787 orders for Jetstar will eventually be based and flown out of Singapore? How many are expected to be flown by Aussie pilots out of Melbourne/Sydney?

The article claims that more 787s will be added in Singapore over time - does that mean that the current dedicated A330s used out of Singapore will be transferred down to Australia and used from there (with Aussie pilots)? Confusing!!!! :ugh::mad::confused::yuk: Are the current A330s flown out of Singapore flown by Aussie Jetstar pilots or flown by Singapore-based pilots? Will Aussie Jetstar pilots gain more A330 flying seats as a result?

I realise it is confusing and probably not set in stone. Thanks for any clarification.

[Sunfish]

The problems associated with basing the B787 and their crews in Singapore, as well as offshoring A380 and engine maintenance are going to be fatal to Qantas.

In summary, Qantas will lose control of its core competencies. The result of that will be financial roo rape by its suppliers.

The problem will manifest itself in a very simple way:

(1) Qantas head office in Sydney will find that it is writing larger and larger monthly cheques to Singapore to cover the costs of the operation.

(2) At some point the bean counters will become alarmed, especially when revenues received do not cover the increasing costs.

(3) The response to the bean counters queries will be "Thronomister failures", "Operational anomalies", "infant mortality", "crew hour limits", "pushing down the learning curve", etc. The accounts they receive will be as impenetrable to them as your Telstra bill. The "one simple hourly charge" mantra will quickly prove to be untrue, as will the performance guarantees.

(4) More detailed technical analysis of costs will be attempted by operations and maintenance specialists. After a long struggle with the suppliers the truth might appear ie: "we are being screwed".

I say "might" because the suppliers will attempt to suppress this conclusion by pressuring the original Qantas sponsors of the outsourcing. "The outsourcing must be perceived to be successful or your career is in danger" will be the message. The usual result in this situation is to shoot the messenger - the firing or resignation of the Qantas cost analysts - the airline wilfully blinds itself by removing anyone technically competent enough to criticize managements decisions.

(5) If Qantas is very, very lucky, the shortage of "in come" to match "out go" will trigger alarm bells, Qantas then reasserts detailed control over its costs by onshoring and begins the long process of re-establishing its corporate knowledge base.

This process is going to be amplified by the falling value of the Australian dollar as Chinese demand dries up and the world goes back into recession this Northern summer.

[Algie]

And yet, Sunfish et al......they will go ahead and do it anyway.

Why

Because its "In Their Nature". Just Google the zillion versions of the "The Scorpion and the Frog" fable and you'll find yourself nodding away in sad agreement.

How we ever got into this mess is not quite a mystery-read Jonathon Raulston Saul's book "The Unconscious Civilization" for starters. Sad though. Very sad. Like the story of the curfew at Sydney and the absence of a decent Hong Kong/Singapore/Denver/KL/Bangkok/Incheon style 24/7 international airport. Just sad.

I personally like the "Do your research, make your decisions, do it once, do it right, learn your lessons, refine the programme and enjoy the rewards" approach. But then I am a simple man.

Algie

[Iver]

Please excuse my primitive mind and my inability to read between the lines, but who will fly the incoming 787s - Singapore-based pilots or Aussie-based pilots?

And, based on new 787s coming into the system, will the current Singapore-based A330s be reallocated to Australian bases thus providing more A330 flying opportunities for the Aussies (or will the 787s replace the A330s altogether)? Any idea/estimate on eventual proportion of Singapore-based 787s to Aussie-based and Aussie-flown 787s?

Your points about outsourcing and bean-counter decision making is well taken - all professional airline pilots need to be worried about this assault on our profession.

Cheers

[Keg]

The plan at Qantas changes frequently according to industrial imperatives at the time.

The current articulated plan is for the J* A330s to return to the Qantas mainline fold and thus allow the 767s to be progressively retired from early next year. I don't know what that means as to who will be flying the 787 (J* Asia or J* Australia) or what destinations they'll be flying them to. I just know that the 'cost of capital' will be going to a subsidiary that supposedly makes all it's profit from selling muffins.

[Artificial Horizon]

There is no way in hell that any EBA pilots will be getting their hands on the 787. Why would they when J* can base these aircraft up in SIN where the pilots are so much cheaper??

Also KEG, why is it hard to believe that J* does make a profit with its current business model. You just need to look at the northern hemisphere to see that it is possible to make a profit with the 'muffin selling' model:

Ryanair: 487 million euro profit last year (270 aircraft)
FlyBe: 14.3 million pound profit last year (67 aircraft)
EasyJet: 248 million pound profit last year (183 aircraft)
Southwest Airlines: 459 million USD profit last year (559 aircraft)

No of these airlines are 'subsidised' in any way but managed nice healthy profits for their size even though the majority of that profit comes from ancillary sales. Why not Jetstar??

[Capt Kremin]

Because Bruce Buchanan told everyone last year that muffins were the only reason they were making a profit at the time.

[Dash1]

A 5 year old could run a company that makes a profit if said company doesn't pay it's bills. Maintenance, pushback tugs, faxing documents, check in staff, Jetstar pax on loaded to Qantas flights - what's the delay code for that one? etc, etc, etc.

[Artificial Horizon]

That is my point, the low cost carrier I worked for in the UK repeatedly used to tell us that we made absolutely NO profit from passenger tickets and that ALL the profits for the airline came from the onboard bar / cart and other revenue such as hire car / hotel deals. This is NOT uncommon for low cost carriers. So when Bruce said that all profits come from muffins, this is actually not unexpected for a low cost carrier. It has yet to be shown that Jetstar receives ANY real benefit from Qantas. They may do, but then again they may not, it is not totally unrealistic that Jetstar does actually make a profit with this business model. Qantas is losing money in its international operations which once again is NOT unexpected in the current climate. Just look at the list of 'legacy' carriers that are currently bleeding money on longhaul flying:

British Airways
Singapore Airlines
Qantas
Air New Zealand
American Airlines
Lufthansa
Air France / KLM

Once again I will ask, if Jetstar can only make a profit due to Qantas subsidies then how do all those other low cost carriers make so much profit from their muffin selling when they are not supported by any legacy carrier parent.

[Capt_SNAFU]

No doubt JQ domestic makes money and is probably a good investment by QF group, J* asia perhaps turns a dollar. As for the rest, I'd like to see how much J* international makes? Separate it like QF Int.

J* pacific (basket case), J* NZ I'd like to see if they return the cost to capital. J* Japan has about one pilot application.

As for Ryan air et al. They are subsidised in a way by the some of *&%@hole airports that they fly into. Low cost carriers in Europe and the US make some sense due to high population density and large number of airports.

Which low cost long haul airline is making money?

[Taildragger67]

If Jetstar makes money by selling muffins and loses on everything else, then it would seem logical to this simple mind that shareholders in QAN would be better off if:

1.all flying ops were ceased;
2. the $3bn cash pile either distributed back to shareholders or put on term depo at 5% (I'm getting that for 6mths at the moment so it shouldn't be hard for the treasury to get) = $150m / year interest;
3. flying-related assets sold off and the resulting cash used to purchase muffin-selling assets (a Mrs Fields franchise, perhaps?).

Flying aeroplanes around is an expensive way to run a muffin-flogging outfit.

[The Green Goblin]

Ryanair: 487 million euro profit last year (270 aircraft)
FlyBe: 14.3 million pound profit last year (67 aircraft)
EasyJet: 248 million pound profit last year (183 aircraft)
Southwest Airlines: 459 million USD profit last year (559 aircraft)

Surely this rings alarm bells?

How many aeroplanes do these guys operate to return that type of profit?

This equals a ****load of capital and the returns are not great. It's just a numbers game.

How many aeroplanes do Singapore airlines operate? Cathay? Qantas in 2008?

What type of profit do they generate from a little thing called yield?

The only way Jetstar for instance makes sense is if you see it from the bean counters perspective. They want Qantas yields with Jetstar costs.

Unfortunately what they can't factor into the spreadsheet is the quality of staff that compliments the product. For instance a flight attendant who is well paid will attract a certain type of person. A career person so to speak. They will act professionally and relate to high yield customers effortlessly. The Qantas 767 and 747 crew are a good example. While presently jaded and probably not operating to their previous standards they are generally intelligent, experienced, well groomed, knowledgable and would be a credit to Qantas in any emergency.

An australian flight attendant who earns a pittance will not be there as a career. They will be enjoying a couple of years of travel and partying until they get a real job. They are 20 something bimbos who wouldn't know a jet engine from a hair dryer. Often pretty on the eye but lacking in respect or service. They are more interested in hanging in the rear galley discussing nail polish techniques or how smashed they got on their last RDO.

Borghetti is onto it. Virgin don't have a market in Australia big enough to justify a Ryanair fleet chasing numbers. So he has gone after yield. He has also increased the quality of the staff via remuneration that values them. The right candidates are now coming online and every time I fly virgin I am nothing but impressed.

All of the boys I used to fly with that are there are pretty happy about the place and believe in the companies future. There is even talk about more 330s from Kingfisher's unfilled orders and 737 expansion.

I should have taken the red pill.

Sigh :uhoh:

[Budfox]

Ryanair: 487 million euro profit last year (270 aircraft)
FlyBe: 14.3 million pound profit last year (67 aircraft)
EasyJet: 248 million pound profit last year (183 aircraft)
Southwest Airlines: 459 million USD profit last year (559 aircraft)

And one massive loss from Kingfisher makes these figures look rather small. To also hear that Kingfisher never turned a profit since its inception :eek:
I agree with GG, thats a huge amount of aircraft !!

[TIMA9X]

And one massive loss from Kingfisher makes these figures look rather small. To also hear that Kingfisher never turned a profit since its inceptionand Kingfisher never had a Qantas mainline to feed off...

nCXRYPsZMGE




:*

[73to91]

priceless TIMA9X.

But it will never happen, why? because AJ said so back in Oct 2009.



In an interview leading up to last week's Qantas annual meeting, chief executive Alan Joyce moved to allay fears among the company's 35,000 employees that the national carrier would continue to be "Jetstarised" to further lower costs as the group faces unprecedented price competition on its key international routes.



and


"We have decided that, with Qantas, we have gone to a minimum network, a network we can't drop below," Joyce was reported as saying. "There will be no further replacement of Qantas flights with Jetstar – that's it."


Read more: Qantas will not be 'Jetstarised': Joyce (http://www.theage.com.au/travel/travel-news/qantas-will-not-be-jetstarised-joyce-20091029-hn2z.html#ixzz1pcm7EOuQ)

[TIMA9X]

In an interview leading up to last week's Qantas annual meeting, chief executive Alan Joyce moved to allay fears among the company's 35,000 employees that the national carrier would continue to be "Jetstarised" to further lower costs as the group faces unprecedented price competition on its key international routes. He's up to something.... I noted this story today, tell us all about it Allan, it's tough at the top when your pilots earn more than you do.... oh yeah, tell us about your life's story while we are at it..... :E
Guess who The Australian again of course... but not written by Creedy...... it feels like he's campaigning for a build up to a big announcement of some sort soon..... change of the Asia strategy perhaps......

Alan Joyce on cancer, coming out and his 'modest' $5m pay
Cookies must be enabled. | The Australian (http://www.theaustralian.com.au/business/aviation/joyce-on-cancer-coming-out-and-his-modest-5m-pay/story-e6frg95x-1226305661005)


by: Nick Leys
From: The Australian (http://www.theaustralian.com.au/)
March 21, 2012 12:00AM




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QANTAS chief executive Alan Joyce has defended his $5 million salary and claimed aircrew get paid more on an hourly basis.


In comments sure to infuriate pilots still smarting over protracted and bitter workplace negotiations with management, Mr Joyce said his salary today was less than it was in 2008 when he was chief executive of Jetstar.
This was despite a $2m bonus awarded at last year's annual general meeting on the morning before he historically grounded the airline. "What Qantas pays me as CEO is actually very conservative compared with other ASX 100 companies, and if you ranked salaries by hours worked I'm not even the highest paid person in Qantas because the pilots and senior captains get paid a lot more," Mr Joyce said.


"The industrial crisis of 2011 was not a dispute over pay, as all the unions said. It was a dispute over management's ability to manage and unfair restrictions being placed on our ability to manage our company."
http://resources1.news.com.au/images/2012/02/28/1226283/551381-top-50-tech-rec-coverage.jpg (http://www.theaustralian.com.au/top50?utm_medium=marketing_placements&utm_source=TA&utm_campaign=50_med&utm_content=mp_story_free_seealso&creative_id=ta_50_medl149x181_gen1a&sourceCode=TAWEB_MPL120A)


In an interview with GQ, Mr Joyce talks about telling his family he is gay, surviving cancer, his childhood in Ireland and mistakes he has made during his career.


"I could pick a load of mistakes I've made, but the one that stands out is when we set up Jetstar without assigned seating on the aircraft," he told the magazine in a response sure to be met with incredulity by the 70,000 passengers left stranded worldwide when he grounded the airline last October for almost 48 hours.

"It was a disaster and I was the one who'd insisted on doing it," he said of his Jetstar seating decision. "It was a valuable lesson and it taught me this: If you know you've f . . ked up, admit it immediately, then take fast action to fix it."
Mr Joyce, 45, was appointed Qantas chief executive in 2008. He began with Irish carrier Aer Lingus in the 1980s and 90s before joining Ansett in its dying days and launching Jetstar in 2003.


The locking out of unionised workers last October to secure Fair Work Australia arbitration of disputes with pilots, engineers and baggage-handler unions made him a figure of loathing for staff at Qantas, but a hero to big business.


He said it was tough growing up gay in the Dublin working-class suburb of Tallaght, but that he enjoyed "very supportive parents". Today he lives in an apartment in The Rocks with his partner of 14 years, an unidentified New Zealand man. "(Coming out) was a big moment, but there was no real inner turmoil for me and it wasn't a surprise to my family."


He also spoke of the trauma of being diagnosed with aggressive prostate cancer. "What came into sharp focus in the aftermath of the cancer scare was my determination to do the right thing by Qantas and the honour it is to be CEO. I want to make sure that when I leave it's a lot stronger . . . than when I arrived."

lay it on guys........ I fear we are going to have AJ back bigger and brighter in the media, "the AJ makeover to win the hearts and minds of all Australians," (not just the 70, 000 he stranded) and in the not too distant future...:(

[Tidbinbilla]

Let's get back on topic, please. This thread is rapidly degenerating into yet another QF/JQ/JOYCE bashing thread.

[Iver]

What is the expected arrival date of the first Jetstar 787 in Singapore? This summer? How many total by the end of 2012 expected?

[TIMA9X]

What is the expected arrival date of the first Jetstar 787 in Singapore? This summer? How many total by the end of 2012 expected? Dreamliner to join Jetstar’s fleet from mid-2013

The Jetstar Group is expected to receive the first of 15 B787-8s as part of an order of 50 Dreamliners by parent company, the Qantas Group. Singapore travellers will be among the first Jetstar passengers to fly on the Dreamliner from its expanding Southeast Asian hub.

Jetstar on-track to be the first LCC to fly Dreamliner (http://www.jetstar.com/mediacentre/latest-announcements/detail?Id=E215D768-11B6-4E46-BDC1-E1FB5A038549)

meanwhile




New CEO for Jetstar Asia



http://images.smh.com.au/2012/03/27/3168310/Jetstar-CEO-AL-WIDE-200x0.jpg Incoming Jetstar Asia CEO Barathan Pasupathi.



THE Qantas-backed Singaporean budget airline Jetstar Asia has named a former chief financial officer as the replacement for its well-respected chief executive for the past six years, Chong Phit Lian.


Just a day after Jetstar inked a deal with China Eastern to set up a low-cost affiliate in Hong Kong, the Singaporean operation appointed Barathan Pasupathi as its next chief executive.


Mr Pasupathi, a Singaporean citizen, was at Jetstar Asia between 2004 and 2007, before shifting to Kuwait to work for Jazeera Airways and later a German oil company in Singapore.


Ms Chong resigned as chief executive in December, and stepped down on February 1.
Jetstar Asia seconded Paul Daff, most recently the boss of Qantas' New Zealand subsidiary Jetconnect, to Singapore as Jetstar Asia's interim chief executive.


Mr Daff will remain until Mr Pasupathi takes up his new role on July 2.
Shares in Qantas rose 1.5¢ to $1.78 yesterday after analysts reacted positively to its plans to launch Jetstar Hong Kong next year as part of a 50:50 joint venture with Shanghai-based China Eastern.
Jetstar Asia chairman Dennis Choo said Mr Pasupathi, one of the budget airline's founding executives, had a ''first-hand understanding of our business as well as the aviation sector overall''.


The departure of Ms Chong was seen as a blow to Jetstar Asia as she was credited with helping boost routes from Singapore to other parts of Asia and making the carrier profitable after several years of losses.
Jetstar Asia's main rivals are Singapore Airlines-backed Tiger Airways and Malaysian budget airline AirAsia. It will also face competition from Singapore Airline's new budget airline, Scoot, which will begin daily services between Singapore and Sydney in June.


Jetstar Asia is the Australian airline's biggest operation outside Australia. The Singaporean company posted a pre-tax profit of $S18 million ($A14 million) for the year to June, its biggest profit since it began service in 2004.
In 2009, Qantas invested $S25 million to boost its stake in Jetstar Asia to 49 per cent and Mr Choo, a Singaporean businessman and long-time Qantas associate, raised his holding to 51 per cent by buying out minority shareholders, including the Singapore government's investment arm, Temasek.

Read more: New CEO for Jetstar Asia (http://www.smh.com.au/business/new-ceo-for-jetstar-asia-20120327-1vwgc.html#ixzz1qL1JM100)

Interesting

[peuce]

With Temasek bailing, will that also mean an easing in any preferential treatment of Jetstar by Singapore/Changi?

[DrPepz]

Temasek bailed 6 years ago in 2006. Jetstar Asia has never received preferential treatment in SIN and has access to the same incentives that SIA and other SIN-based carriers have when launching new routes.

Arguably, Jetstar Asia has expanded much better without Temasek ownership. But Temasek ownership in the beginning was probably useful to get the venture up and running. Dixon announced Jetstar Asia when the venture actually already secured government approval, with planned routes and schedules (back in 2003).

[Mstr Caution]

And of interest.

BP was at Jazerra Airways (LCC) based in Kuwait.

Where in 2010 the airline model proved unsuccessful due to an overcapacity in Kuwait. Aicraft were parked (returned to lessors) and deliveries of 25 x A320's cancelled.

[Capt Kremin]

Dixon announced Jetstar Asia when the venture actually already secured government approval, with planned routes and schedules (back in 2003).

That is the difference with this management, as Red Q so aptly demonstrated. How can you run a business when;

1. None of your staff believes a word you say; and

2. None of your staff believes you have any competence to run the airline?

:confused::confused::confused:

[C441]

Soon after the appointment of Alan Joyce, a fairly senior, and well respected, Qantas Group manager told me the primary aim of the Board Chairman and CEO was to continue to drive the entire airline to the Jetstar model.

In that respect their goals and targets are well on the way to being fulfilled, in probably a considerably shorter timeframe than expected, and thus personal bonuses are being awarded.

Sad really.

[Ollie Onion]

Off course they want the entire airline on the Jetstar model. Imagine the cost savings if they can still have the Qantas branded aircraft flying around with the Pilots / Cabin Crew / Ground Staff etc on Jetstar pay and conditions. I firmly believe that the public don't give a toss who is actually up the front or what country they are employed in.

I hope to god they are not successful but I think the plan is becoming clearer by the month. Good luck!!

Ollie :{:{

[C441]

You miss the point Ollie. It's not just the staff on Jetstar wages.

They want the entire airline to be Jetstar; the Jetstar product. Their intent was then and still is now, to kill off the Qantas product and replace it with Jetstar.

But I guess that's obvious now.

[TheWholeEnchilada]

to kill off the Qantas product and replace it with Jetstar

And with it the Qantas Sales Act, game set & match. With that, all sorts of possibilities open up - for the executives of course (LBO's, private equity, mergers, acquisitions etc).

Behind every great fortune there is a crime.

--Honore de Balzac
French realist novelist (1799 - 1850)

[crow17]

So, what of the rumour that the project to see Jetstar A330's with VH rego, to be transfered to Singapore rego has been canned due to financial and regulatory issues. Will this hamper the 787 introduction straight into Singapore?

[Lookleft]

Apparently BB is having a lot of difficulty accepting the fact that just because you have a license to fly in country A that you don't automatically have a license to fly in country b with country b registered aircraft. I don't know how many non-Japanese pilots with an A320 rating and a JCAB license are lining up to start with J*Japan!

[TheWholeEnchilada]

Sounds to me like BB has finally hit an inscrutable regulator who won't be captured. Welcome to reality.

[metrosmoker]

I think right now they are to busy trying to get regulatory approval to fly between Manila and Tokyo. To bad the route was suppose to start last week.
Or was it that they forgot to sell the seats on the net for the first week of flying????
Singapore AOC and B787`s that are over 12 months aways, that problem will be addressed in around 11 months I would think.

[DrPepz]

How different would changing the VH registration A330s to 9V be from changing the VH registration A320s to 9V as Jetstar has done for their existing SIN-based A320 fleet?

[PPRuNeUser0198]

I think right now they are to busy trying to get regulatory approval to fly between Manila and Tokyo. To bad the route was suppose to start last week.

The first flight (DRW/MNL/NRT vv) operated today.

Aircraft is currently en-route to NRT.