Jetconnect con job

[schlong hauler]

The deceit by QANTAS management is unravelling for all who care to see.Trans-Tasman costs hurt Jetconnect (http://www.smh.com.au/business/transtasman-costs-hurt-jetconnect-20120819-24ghk.html)
Jetconnect is not a subsidiary given the damming evidence and testimony given under oath by Rob Gurney during the FWA hearing whist being questioned by AIPA lawyers. It is completely controlled by Sydney QF management and IMHO in contravention of the QSA. It is not operated independently which is glaringly obvious. If Air New Zealand can make money whilst paying crew more, then why cant Qantas make even more using Jetconnect? More bull**** more lies and more deceit. No wonder Gurney was given the bullet after such nefarious testimony.
This is only a scratch on the surface which will uncover many false claims, more spin and more deceitful conduct over the next few months.

[3 Holer]

If I were a QAN shareholder, I would be very pissed off with this latest revelation! :mad:

[rodchucker]

This is either stock standard Qantas strategy to beat another union(s) OR yet another example of ANOTHER part of the business that they have SUDDENLY found to be unprofitable.

If shareholders don't act this time they get what they deserve because it is probably time for the whole place to be put under decent management.

[Ollie Onion]

I would be worried if I were Jetconnect, Jetstar NZ has been told that the ONLY reason that Jetstar hasn't taken over ALL trans-tasman flying is due to the fact that Jetconnect can provide the business class product.

With Emirates now in the frame for code sharing could this be the end considering Emirates is the biggest business carrier across the Tasman (in terms of seats).

Jetstar CEO going to be in Wellington shortly for an announcement and rumours that the Irishman is coming with him:eek:

I hope I am wrong as the Jetconnect business product across the Tasman is some of the best I have ever used.

[Jack Ranga]

Ahhh, the Qantas way (of doing business). Makes you all warm and fuzzy inside that they set such high values.

Al, are you proud that you presided over Qantas's first loss since privatisation? Wasn't your fault? Didn't think so ;)

[SOPS]

First there was International not making money...then suddenly it was Domestic "not doing well", now its Jetconnect....just wait next will be Qlink.
After that it will be Jetstar Australia operations.....you get my drift..:ugh:

[600ft-lb]

My opinion, which will yet to be seen, this is part of the contraction of foreign operations so it can compete effectively in Australia.

Reduce flying overseas so it can bring the A330's back to domestic to replace the 767s and compete with Virgin.

The same for Jetconnet with their new airframes.

Then, a few years down the track when the 787s finally turn up, look outwards again.

[cart_elevator]

No wonder Gurney was given the bullet after such nefarious testimony.

Gurney wasnt given the bullet at all. He actually was given the CEO position at Jetset Travelworld,the largest shareholder is Qantas.

From the SMH:
Former senior Qantas executive Rob Gurney will become the new chief executive of travel company Jetset Travelworld following the departure of its boss Peter Lacaze.

Jetset, in which Qantas is a major shareholder, announced today that Mr Lacaze will retire on September 30.

[gobbledock]

It won't affect this bloke..........
http://resources3.news.com.au/images/2011/07/20/1226098/524015-110721-alan-joyce-qantas.jpg

[Keg]

I reckon 6000ft is on the money. This cutting back of international routes is because we're not making money on them. The 787 gives them a chance to make money (heaps of it) on routes like FRA, CDG, SFO, etc. Given the loads on the 744, the 787 will be chockas, carrying 2/3- 3/4 of the passengers for about half the fuel. The time frame that they talk about 'turning around' international is about the same as the delivery schedule for the 787 also.

Here's hoping anyway! :eek:

[SOPS]

But Keg, aren't the initial 787s going to Jetstar??:ugh::ugh:

[ohallen]

Then, a few years down the track when the 787s finally turn up, look outwards again.

That of course assumes the punters will come back. Given the way they have been treated during this time, it is hard to imagine any foreign entity that takes advantage now, will easily hand them back. The only outcome will be Q or whatever its is called by that stage has two battle fronts with well established competitors and an alienated group of former FF.Then again they could always launch Jstar junior and compete on price and undercut themselves again. Just thinking about all this makes me furious.

[SOPS]

They aready have Jstar junior..its called Network. It just isn't being used....yet.

[Angle of Attack]

If anyone actually looks online these days Jetstar is actually way more expensive for bookings within a week, yeah they have some discount fares if you book early but within a week you can often get flights on QF cheaper. I Predict jetstar services will contract during the next year or so, they have positioned themselves out of the market, they are a pig in the middle and let's face it they got a majority of their pax from gifted QF routes. QF are going back to hamo, sunshine coast, rocky, Mackay, I have heard, tiger will take the LCC pax, because they have genuine low fares, within 2 years there will be around 100 excess pilots in jetstar.... You heard it first right here....

[rodchucker]

AoA that makes perfect sense, set up a pilot group to undercut the existing group who are overpaid and overqualified, then dump the under cutters once they achieve what they were intended to achieve and revert back to the pissed off group for the future.

No wonder the Q Exec are paid so much money, who would have thought of that in the real world but in the history of the decision makers it makes perfect sense.

Please save us from this lot of geniuses when all could have been achieved with some genuine negotiations.

[Mstr Caution]

AofA.

Fits in with the talk I heard recently that Strambie's looking over all the possibilities for the Qantas Dom network.

After the Gold Coast I'd heard Hamilton islands a possibility.

For those who haven't noticed. The CityFlyer terminology has been dropped on Qantas Domestic services. Signage at airports & cabin PA's have dropped the reference.

Rumor I've heard is the term Qantas flight & Jetstar code share is the preferred product branding.

[reubee]

Whilst the article says

Qantas does not disclose the performance of Jetconnect in its accounts.

Read more: Trans-Tasman costs hurt Jetconnect (http://www.smh.com.au/business/transtasman-costs-hurt-jetconnect-20120819-24ghk.html#ixzz245c7QHP4)

... the annual return of JetConnect is available from ...
http://www.business.govt.nz/companies/app/service/services/documents/F7EBAD42A5F9797ED29C582D949D4A7C

Documents (http://www.business.govt.nz/companies/app/ui/pages/companies/1143116/documents)

[Dash1]

If anyone actually looks online these days Jetstar is actually way more expensive for bookings within a week, yeah they have some discount fares if you book early but within a week you can often get flights on QF cheaper. I Predict jetstar services will contract during the next year or so, they have positioned themselves out of the market, they are a pig in the middle and let's face it they got a majority of their pax from gifted QF routes. QF are going back to hamo, sunshine coast, rocky, Mackay, I have heard, tiger will take the LCC pax, because they have genuine low fares, within 2 years there will be around 100 excess pilots in jetstar.... You heard it first right here....

Qantas taking routes from Jetstar?????? No way......

[framer]

I doubt that any carrier is making money on the Tasman in any sort of sustained fashion. I imagine it is mainly about connecting longhaul flights.
If you looked solely at Air NZ´s Tasman flying, would it break even?
Jetconnect could disappear overnight and QF 737´s could take over pretty much seamlessly, but if that happened would QF suddenly make more money on the Tasman? It would most certainly lose a vehicle for cost effective 787 operations out of New Zealand.

[haughtney1]

I doubt that any carrier is making money on the Tasman in any sort of sustained fashion.

Ahem, I'd be surprised if the elephant in the room EK isn't, the amount of high value freight carried on its own has to be seen to be believed.

[Luke SkyToddler]

That's the real problem isn't it ... all this bitching between mainline / Jetconnect / QF over who stabbed who in the back, kind of ignores the real problem that the Aus and NZ gov't rolled out the red carpet for the Gulf carriers to come onto the Tasman and cherry pick a huge heap of the highest yielding pax and cargo.

I doubt whether anyone - be it ANZ, Virgin, or any of the multiple guises of QF - is capable of making any more than a paper thin margin on the Tasman at the moment, until something is done to redress the fact that there's a bunch of A6- reg 777s and A380s (with free petrol and filipino crew wages) hoovering up all the profit on those routes and returning absolutely nothing to the local economies.

[scrubba]

so who is setting the price level at which even Jetconnect can't make a profit?

[framer]

Wasn't the answer to that question given in Luke's post?

[SOPS]

"Free Petrol"..Luke? What, they just give it to them in Auckland, do they?

[haughtney1]

I suspect Luke is speaking with a bent towards the advocacy of the devil...:E

Those A6 registered jets pay market rates for fuel....I get to read the weekly pleading for us to save gas.
Having said all that, the ditch has in recent memory been a loss leader for QF and Air NZ, it has also been to the detriment of the customer that both companies tried to create an effective duopoly but have in essence been engaged in a race to the bottom.
EK for its part has gained market share thanks to its superior on board product and competitive pricing, that may be on the back of a lower cost base, but it's also due to a slick marketing and commercial department who are superb at filling aeroplanes with passengers and cargo.
Air NZ and QF also suffer in the sense they are point to point carriers across the Tasman, EK offer superior connectivity to most points on the Globe, and hence they Hoover up a fair few premium passengers.
Having the best IFE onboard also helps keep the Y class punters happy as well.