Qantas Annual Report/General Meeting

[Ken Borough]

Can/may I urge all staff and small shareholders to lodge a proxy and vote on the resolutions at the forthcoming AGM?

As staff and shareholders have been poorly treated for some years with respect to a dividend drought, votes AGAINST resolutions 3, 4 and 5 would be quite in order and appropriate. Is it not about time that those at the top get the message in no uncertain terms that QF is not a feast (feeding frenzy?) for them and them alone? :E

[hotnhigh]

ken you are absolutely right in what you say but unfortunately the suits from the big super funds have already delivered the result.
The board and CEO will continue on their merry way to continued bonuses and NPS schemes designed to benefit only one thing, themselves.
One day, the fund managers might wake up and actually ask some serious questions about the pup they've been sold, but until then, life goes on as usual for the board, staff, and individual shareholders.

I just hope Jack Tilburn doesn't blow a head gasket at this years AGM.
Mind you I wouldn't be surprised considering the response he received from the chairman last year, regarding dividends.

Still though, reduced passengers carried on qantas metal seems to be all the rage these days, so lets watch the board and ceo justify their existence one more time and feed the pup for another year.

[Ken Borough]

Cactusjack

Do you intend to be obnoxious, or is that something that comes naturally to you? Take your pusillanimous attitude elsewhere!

hotnhigh

Agreed, but a sizeable shareholder 'revolt' might have an impact. Silly old gits will be ignored, even made fun of, no matter how sincere and right they are. I wonder if Stephen Mayne and the ASA will be voicing negative opinions and recommendations?

[1a sound asleep]

Go the AGM and ask what happened to the firm 20 orders for the A380. And ask where the 110 A320s are going and how are they going to fund them?

The only way to unseat a dictatorship is make some of the followers question the lack of wisdom of the leader

[TIMA9X]

Agreed, but a sizeable shareholder 'revolt' might have an impact. Silly old gits will be ignored, even made fun of, no matter how sincere and right they are. I wonder if Stephen Mayne and the ASA will be voicing negative opinions and recommendations? Well as it turns out, not a lot happened today, the AGM was very mundane compared to the last couple of years... although the 777 order thing was discussed.

Go to the AGM and ask what happened to the firm 20 orders for the A380. And ask where the 110 A320s are going and how are they going to fund them?According to AJ Qantas only ever ordered 12 ...hmmm... the transformation process rolls on... clip of the AGM podcast here for those still interested

ORW0GZNxLrM

and a interesting story from the smh today below

Qantas has warned that a pick-up in business confidence has failed to translate into an increase in demand for flights, forcing it to predict that returns from fares will fall in the first half.
Shares in Qantas fell as much as 5 per cent immediately after the airline forecast today that group yields – or returns from fares – will drop by between 2 and 3 per cent in the first half of the new financial year. In afternoon trade the shares were down 1.7 per cent at $1.4525, after earlier in the day rising more than 3 per cent.
It includes in the forecast the performance of budget offshoot Jetstar.

Read more: Qantas flags sagging returns from fares (http://www.smh.com.au/business/aviation/qantas-flags-sagging-returns-from-fares-20131018-2vrc1.html#ixzz2i34MNNpJ)

well I guess that is another year done and dusted....

[Mstr Caution]

It shouldn't surprise anyone that pressure on fares (yield) should continue.

AJ proudly announced that the arrival of the JQ 787 will continue to provide the opportunity for more people to travel more often for LESS.

When you've got a business model that focuses on reducing fares. What else would one expect.

[C441]

According to AJ Qantas only ever ordered 12 ...hmmm... the transformation process rolls on... clip of the AGM podcast here for those still interested

Pity he didn't tell Flight Training that 18-24 months ago. They were training A380 Captains & F/O's based on having at least 16 aircraft. As a result we now have a significant surplus of both ranks; enough for 16 aircraft but only 12 to crew.

Sadly, my golf handicap is not improving as it should be with so much time free of duty. :{

[SOPS]

May I ask, what was discussed about 777s?

[Arnold E]

One day, the fund managers might wake up and actually ask some serious questions about the pup they've been sold,

I am not a real financial wizz like some here, but it would seem to me that the fund managers are wide awake and have the same interest as the top brass of Q, that is feeding themselves. It is hard to come to any other conclusion. It would be interesting to see any tie-ups between the head sherangs of the said fund managers and Q.:confused:

[Cookie7]

36mins AJ says, "and Emirates will be making the wrong decisions about what they need for their future fleet."
In relation to a question on why Qantas haven't sought the 777.

[Vorsicht]

36mins AJ says, "and Emirates will be making the wrong decisions about what they need for their future fleet."

I think he actually said "and Emirates will be making their own decisions about what they need for their future fleet." Bit hard to tell with the Irish accent and all.

[POT100]

I think AJ was meant to say "Qantas will be making the wrong decisions about their future fleet"...Very apt I think!

The fact is QF has the wrong fleet!..Has been like that for 10 years plus!..
And then you get the worlds most efficient jet...and give it to the low cost carrier so you can fly bogans to Bali for $100, instead using it for its "loss making" International ops!...and bizarrely nobody actually questions that!!!



In engineering, there is now a move to make up Operation managers to sit next to the Duty Maint Manager to apparently relieve him of some of his heavy workload!!.I've never heard such bull****!.yet another layer of management..where will it end???..
It must be to go hand in hand with the grossly inefficient MXI system that they paid $300 million for!!..
Add all of the above to the mind numbing sets of procedures and regulations that now stand in the way of doing, what was a straight forward job, it's very clear to see that Qantas has finally lost the plot!!!!!!

[Paragraph377]

Qantas became a bigger basket case the day that 'wee man' took over from Dicko. The amount of ridiculous decisions, floundering over commitments and the way management change their minds more than a kid in a toy shop is not the way the airline used to operate. At best it is Adhoc, frantic, undisciplined and bordering on an organisation with ADHD. And I am talking about management.
The place is not attractive to investors, not when there ain't so much as an air of stability or the glimpse of a strong management lead strategic front.
It is like looking at a 747 classic in all its beauty, stripped down to nothing but some rusty spars. Sad indeed for the good people who still work for the Roo.

[Troo believer]

Well the share market voted today with a drop of 5%. The chance of QF ever getting 787s in the future looks unlikely!

[POT100]

Couldn't agree more..All we hear are excuses,excuses,excuses from the CEO..Everyone's fuel bill has gone up, so what you gonna do to counteract that..err nothing!!.QF is a top heavy managed company with some managers who perhaps shouldn't be in their positions..But you have to lead from the top and the top hasn't a clue how to counteract the competition.They cancel premium routes handing them to JQ, make hair brain decisions about strategy, and basically put all effort and expenditure into JQ!..


I believe the agenda is to run QF Int into debt, explain they can't continue & need to restructure handing out new pay & conditions to the LH Pilots and kick out any Union involvement !..This I believe is LC's aim before he stands down!..


If they continue to run QF as they are, there will be no Qantas in 5 years!!..
Unfortunately QF is 80% owned by 3 or 4 funds, and they think AJ & Co are the best thing since sliced bread!..even though......
QF hasn't paid a dividend for 4 years, shareholder value has been eroded, very low staff morale & engagement, Inspite of what was said at the AGM!
VA is closing in fast on Domestic, and they're losing pax in droves to other carriers , probably because they don't fly anywhere!!!!...
They've also just spent millions buying back shares since sept ...and the share price is still going down!!!!!
Go figure!

[ASY68]

He mentioned the 788 saved 8t of fuel on the HNL-MEL flight, my question is, Compared to what?

[OneDotLow]

I believe the quote from the crew was "8,000L" which is more along the lines of 6.3T.

Compared to what? An aircraft with a full load of pax and freight.

It's a saving, but it's not amaaazing.

[What The]

The only thing amaaaaaaaaazing about Jetstar is the paper profit that is concocted every year from the revenue/cost allocation procedures of the dickheads running the show.

[dizzylizzy]

Looking at the 330 fleet reconfiguration, (both 332 + 333) will be unified in configuration & product. It seems more likely that the 332's will be mixed deployed on the asian routes that they were previously serving instead of potential 789 orders OR the 789 would replace the 333's in a long term proposition.

As we enter the 'maturing' stage of the mining boom there will be less FIFO workers and so a decrease in E/W + intraWA mainline sectors. A wad of 738's redeployed on east coast triangle and the now 330's serving E/W redeployed to asia.

[TIMA9X]

Unfortunately QF is 80% owned by 3 or 4 funds, and they think AJ & Co are the best thing since sliced bread!..even though......Agree with POT100,
what bugs me as well, when you couple these 3 or 4 funds (bean counters) with the oversupply of consultants (bean counters) employed by Qantas management (you guessed it, bean counters) in the last 12 months says to me they are not the right mix for making the right decisions in running a 93 year old airline. Some say it's the blind leading the blind and the last 5 year share graph doesn't paint a pretty picture for the current leaders, LC & AJ etc.

https://lh5.googleusercontent.com/-VA_W_qSFXEU/UmT271o89CI/AAAAAAAACbc/c6vblJnIbxs/w668-h855-no/001-qantas-5-year-share-graph.JPG

They've also just spent millions buying back shares since sept ...and the share price is still going down!!!!!
Go figure! Yeah, and they keep telling us everything is on track for the QF transformation process... then I read this from Ben Sandilands today which hit a nerve with me.

One proprietary document that stood out in the in tray (which will probably be recycled in the business media tomorrow) expressed surprise at the negative guidance, said that free cashflow would be negative in the first half of FY14, and said it believed Qantas was being outperformed by Virgin Australia on revenue and that international competitors had benefited from its Emirates alliance, which has seen former Qantas customers supposed to fly Emirates and pretend it is Qantas refusing to do as they were told and going elsewhere.
And this was a Qantas friendly assessment in that it gently bemoaned the impatience of the market and accorded a valuation of $1.70 on Qantas shares.
Qantas falls sharply after negative guidance sinks in | Plane Talking (http://blogs.crikey.com.au/planetalking/2013/10/21/qantas-falls-sharply-after-negative-guidance-sinks-in/)

Monday's report ABC the business

-k1nx2rnZJw

And for those interested, this video was compiled focused on the last three years reporting seasons 2011-2013 from Qantas which I am sure many will agree the message has become very confused as to which direction the company is headed, for me, it's all over the place and too focused on J* Asia which is now relying on the 787 saving the day..? :bored:


BaEokFy3KBc

[Romulus]

Unfortunately QF is 80% owned by 3 or 4 funds,

No they're not. What you see as JP Morgan Nominees or similar is a trustee company for super funds etc. All of the various super funds are required, for reasons of governance, to hold their shares via a trustee company in order to provide checks and balances.

Each of those holdings is most likely represented by the trustee company on behalf of a hundred super funds who are the beneficial owners.

Much as people are asked to be accurate about anything related to aircraft I would suggest a degree of accuracy and understanding in your reading of financial documents would be appropriate.

[Romulus]

I believe the quote from the crew was "8,000L" which is more along the lines of 6.3T.

Compared to what? An aircraft with a full load of pax and freight.

It's a saving, but it's not amaaazing.

How much is 6.3T worth at cost price?

IATA - Price Analysis (http://www.iata.org/publications/economics/fuel-monitor/Pages/price-analysis.aspx)

Let's go with $985.80/T

$6210.54 per flight

How many flights per annum will make this saving?

Let's say one a day,365 a year.

$2.27M each year.

Now, if you multiply that across the fleet you're starting to talk serious $$ without even considering the cash flow implications, cost of money, alternate deployment opportunities etc.

[Pavement]

Romulus

You didnt add cost of capital although you may have meant this when you said cost of money. To buy the new aircraft QF has to borrow the money. This is a significant expense over an older aircraft. Corporate lending rates are around 7-8% depending on the company. The bean counters will factor this in but it means that your savings are not quite the $2.27M per year. I know you were being simplistic but it would be disingenius for any of us to quote savings without having intricate knowledge of all the companies costs.

[OneDotLow]

And the cost of carrying pax and freight, Romulus?

I'm not saying there isn't a saving there, but it ain't as amaaazing as they'd like us to believe.

[FYSTI]

No they're not. What you see as JP Morgan Nominees or similar is a trustee company for super funds etc. All of the various super funds are required, for reasons of governance, to hold their shares via a trustee company in order to provide checks and balances.
Romulus raises a very interesting & important point. Its not about who owns the shares, its about who controls them. Which party exercises voting rights - the nominee (JPM) or the ultimate owner? Are JPM or any other nominee obliged to follow the instructions of the super funds, do those funds even care? If no preference is expressed, is a vote cast by JPM? Where does the ultimate voting power actually vest?

Its not hard to imagine a system that ends up with a massive amount of "conscripted capital", that has ultimate ownership, but no effective control. The corollary in this scenario is that nominees end up up with enormous effective power, but without having put up any capital.

[hotnhigh]

No matter which way you cut it, the pup that has been sold is now starting to defecate in the corner.
A lot of people inside the business can see it but their opinion counts for naught.
And looking at the market, they aren't happy with the pup model either.
$1.31
Down, down, prices are down.

I'm wondering what theme music can be played at the next qantas agm to announce the arrival of the board and the others that feed the pup?
Perhaps David Bowie- Heroes

And finally, Tima9x perhaps a quick glance at the qantas data books from 2013 vs 2005 and a look at the real passenger numbers carried by qf then and now and the links to overall profit results will provide you with more quantitative data to fill your boots.;)

[Mstr Caution]

Don't worry about the share price, purchasing 787's or a shrinking network.

The really big news is the redevelopment of the Mascot Campus is looking great & the new uniforms will launch in December. Engagement levels should bounce on the news.

Qantas to launch new uniforms on December 12 - Flights | hotels | frequent flyer | business class - Australian Business Traveller (http://www.ausbt.com.au/qantas-to-launch-new-uniforms-on-december-12)

[Sarcs]

Nick Xenophon Media Release:
Qantas chairman must step aside pending investigations (http://www.nickxenophon.com.au/media/releases/show/qantas-chairman-must-step-aside-pending-investigations/)

16th October 2013

Independent Senator for South Australia, Nick Xenophon, has called on Qantas Chairman Leigh Clifford to step aside until overseas authorities, including the UK Serious Fraud Office, the Financial Conduct Authority (UK), the US Department of Justice and the US Securities Exchange Commission, have completed their investigations into the activities of Barclays Plc, at the time Mr Clifford was a director.

Barclays, and a number of its officers, are being investigated for an ‘advisory fee’ of $500 million that was allegedly paid to facilitate a transaction with Qatar Holding LLC for a £9.2 billion injection of capital in 2008. Mr Clifford was a director of Barclays at the time the alleged payments occurred, as reported in the Australian Financial Review today.

The US investigations are examining whether payments made by Barclays to third parties have breached the US Foreign Corrupt Practices Act.

Last year, Qantas non-executive director Corinne Namblard resigned, as a result of a corruption investigation in Italy relating to allegations of bid rigging and document fraud for a company of which she was an officer.

“When Ms Namblard stood down, Mr Clifford said the Qantas board ‘appreciated her sentiments’ that she did not want the media coverage of the Italian investigation to impact on Qantas,” Nick said. “Perhaps Mr Clifford should consider these very comments in light of his own circumstances.”

“Mr Clifford needs to explain to Qantas shareholders what he knew about those ‘advisory payments’ and explain what involvement, if any, he had in authorising them,” Nick said.

“The duties of a director in the UK are as onerous in the UK as they are in Australia,” Nick said. “As a director of Barclays, Mr Clifford should have known about all the payments associated with the Qatar capital raising.”
As reported in the Australian Financial Review, the UK Financial Conduct Authority fined Barclays $84 million just last month for not disclosing the secret fees.

“If the ‘advisory fees’ were above board, why weren’t they disclosed to Barclays shareholders?” Nick asked. “They should have been disclosed as relevant information.”

“The question also needs to be asked if the transaction would have been facilitated if not for these ‘advisory fees’.”

“What did Mr Clifford actually know about this murky deal?”

Mr Clifford is due to face Qantas shareholders at its AGM in Brisbane this Friday.

[Mstr Caution]

NY Times

Timothy Ross, Air Transport Analyst - Credit Suisse Singapore states "Jetstar has not been profitable and is likely to struggle as competition increases"

Are Leigh Clifford & Alan Joyce going to come clean anytime soon on their follies in Asia?

Looks like the Qantas Group have found a home for another 11 A320's in Vietnam for the Amaaaazing business Jetstar Pacific.

http://www.nytimes.com/2013/10/22/business/international/in-vietnam-the-skies-are-filling.html?_r=0