QF AUS Letdown: Australia's highest paid Company CEO.

[Another Number]

Filthy Lucre! (https://www.abc.net.au/news/2019-09-17/ceo-bonuses-soar-as-qantas-boss-alan-joyce-tops-list/11518356)

[pilotchute]

Do Macquarie make much more than Qantas. The Macquarie share price is four times higher than Qantas but the two CEO's make the same money?

Qantas is delusional

[Rated De]

Do Macquarie make much more than Qantas. The Macquarie share price is four times higher than Qantas but the two CEO's make the same money?

Qantas is delusional

A Qantas spokesman said that the airline's value lifted from $2.5 billion to about $10 billion during the period relevant to the report as its share price rose by about 350 per cent.That, in turn, fuelled bonuses paid in Qantas shares, because the shares were awarded at about $1.20 and paid out closer to the $6 mark.

A rather simple exercise.

Call Qantas International "terminal". Establish narrative and repeat ad nauseum. Share price declines substantially.
Control Share register with a cornerstone investor to protect ownership structure.
Have a plan to "transform"
Take said plan to ignorant board (or duplicitous)
Get a whole bunch of share options should this "plan" succeed
Write down QF International fleet in FY15 generating a "huge" on paper loss.
Appear contrite and determined to "turn things around"
Following financial year, the depreciation reduction means "profit"
Exercise share options (very amazingly well timed) as share price recovers.

Same fleet, same contracts, a few less full time staff (a lot more contractors)...
An exercise in financial manipulation.

A country with corporate governance and regulatory oversight would at least look.

With the Royal Commission into banking already long forgotten, regulation of anything left the building a long time ago.

[Going Boeing]

Rated, I totally agree.

When he declared QF International to be in “terminal decline”, the loads hadn’t changed, they were still chockers and I understand that the yields were good due to an overall reduction in ASK’s. He was able to make International look really bad by having a lot of Jetstar’s costs (fuel, spares, engineering, etc) paid by International.

This has been one of the greatest share price manipulations of all time.

[Ladloy]

Do Macquarie make much more than Qantas. The Macquarie share price is four times higher than Qantas but the two CEO's make the same money?

Qantas is delusional
Macquaries market cap is 45b whole qantas is 6bil. 9 times more value

[CurtainTwitcher]

NO NO NO, YOU ALL HAVE WRONG!

Alan claimed back in 2012 he was paid LESS that the pilots.*
QANTAS pilots have lashed out at their chief executive Alan Joyce after he claimed he earns less than some of them.After a brief lull in the war between pilots and the airline that culminated in the fleet's grounding six months ago, Mr Joyce has reignited their fury by discussing his salary in an magazine interview. He said if one considered his "conservative" $5 million a year salary and the hours he worked, he was lower paid than some senior pilots and captains.

"Alan Joyce is a mathematician, but I think he probably needs to invest some of that $5 million in a new calculator," Captain Richard Woodward, vice president of the Australian and International Pilots Association (AIPA) said. "To put that sort of package in perspective, if Mr Joyce worked 14-hour days, six days a week and never took a holiday -- he'd be on an hourly rate of $1145.

"To describe $5 million a year as conservative is outrageous and insulting."

Mr Joyce made the comments to GQ magazine, saying: "What Qantas pays me as CEO is actually very conservative compared with the 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."

https://i1.wp.com/pixel.tcog.cp1.news.com.au/track/p13n/v2/users/null/items/792bd8e1eaf03aa4183a4719013ebc09/similars?category=alan-joyces-5m-pay-shot-down-by-qantas-pilots&limit=2&t_product=DailyTelegraph&t_template=s3/chronicle-tg_tlc_contentlist/index&td_contentlistTitle=MORE%2520IN%2520alan-joyces-5m-pay-shot-down-by-qantas-pilots&td_eventKey=event10&td_group_id=related-articlesHowever, AIPA said even the top handful of pilots employed by Qantas, senior A380 captains, would have to work an impossible 357 hours a week to get Mr Joyce's annual package.

The average hourly rate is $175 and the minimum guaranteed hours per year is 1040. Salaries range from $37 an hour for the lowest paid to the highest at $269 -- and these pilots have more than 12 years of experience.

Alan Joyce's $5m pay shot down by Qantas pilots (https://www.dailytelegraph.com.au/alan-joyces-5m-pay-shot-down-by-qantas-pilots/news-story/792bd8e1eaf03aa4183a4719013ebc09)

* He also walked up hill both ways to school and licked road clean with tongue, while living in a cardboard box.

[tail wheel]

https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-tops-list-of-australias-highest-paid-ceos/news-story/3cef3ae8afa0e53116d2cd7f83dec182 (https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-tops-list-of-australias-highest-paid-ceos/news-story/3cef3ae8afa0e53116d2cd7f83dec182)

I'm sure Alan is very appreciative of the pay cut the QF pilots took a couple of years ago.

[Rated De]

https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-tops-list-of-australias-highest-paid-ceos/news-story/3cef3ae8afa0e53116d2cd7f83dec182 (https://www.news.com.au/finance/money/wealth/qantas-chief-executive-alan-joyce-tops-list-of-australias-highest-paid-ceos/news-story/3cef3ae8afa0e53116d2cd7f83dec182)

I'm sure Alan is very appreciative of the pay cut the QF pilots took a couple of years ago.

Most every single union fell for the "confronting loss"
They didn't notice that it was a result of an accounting change...

"transformation" the very next year...

[thorn bird]

I find it obscene, exactly who is worth approximately $8,000 an hour.

[Rated De]

I find it obscene, exactly who is worth approximately $8,000 an hour.

Pick a metric other than share price, how does Qantas compare a decade after Little Napoleon's coronation?

[On eyre]

I find it obscene, exactly who is worth approximately $8,000 an hour.

I am all for reward for effort but couldn’t agree more - this is obscene. How the hell could you spend all you’re ill gotten gains at that rate, enjoy it or even feel good about it. Must have a real comfortable bed to lie straight at night 😳

[Pinky the pilot]

What thorn bird and On Eyre said!:ok:

No-one, but no-one, is worth that sort of renumeration.:*

[f1yhigh]

This is probably the best thread to ask this. Pardon my ignorance, but why and how did AJ get the name little Napoleon on this forum? I've been curious for a long time. Thanks!

[gordonfvckingramsay]

I'm sure Alan is very appreciative of the pay cut the QF pilots took a couple of years ago.

And that, folks, is why you don’t give an inch to corporate Australia. They lie to you, scare you, beg of you and finally they steal from you. Case in point here...

[dr dre]

I find it obscene, exactly who is worth approximately $8,000 an hour.

And that, folks, is why you don’t give an inch to corporate Australia. They lie to you, scare you, beg of you and finally they steal from you. Case in point here...


No-one, but no-one, is worth that sort of renumeration.:*


I am all for reward for effort but couldn’t agree more - this is obscene. How the hell could you spend all you’re ill gotten gains at that rate, enjoy it or even feel good about it. Must have a real comfortable bed to lie straight at night 😳


All these “let’s stick it to corporate Australia” quotes are all well and good, but no one is going to take real action.

Is anyone going to quit and join companies that pay their CEO’s modest wages?

Is anyone going to withdraw their patronage from these companies and only use the services of business that pay their CEO’s modest wages?

Is anyone going to withdraw their money from superannuation and other funds that own the majority of the shares as a protest against the remuneration report the shareholders will inevitably vote for?

Is anyone going to vote for governments that institute restrictions on CEO and executive pay?

[Paragraph377]

Alan is very appreciative of the approximately $100m he has made for himself since becoming the CEO at Qantas. He has transformed the iconic airline into.........just another low cost airline. But to be fare, some of his achievements have been;

Outsourcing numerous functions on the Dash 8 fleet such as Engineers no longer headsetting the aircraft or doing the pre-start walk around. Now a pimply faced 18 year old kid who six months ago was pushing trolleys at Big W gets to do it.
Turning an entire airline into his own personal gay rights advertisement, complete with little rainbows on the fuselage.
Expanding the Qantas Club to include every plugger/orange shirt wearing bogan in the country.
Going to war with staff, airports, unions and anybody else that comes between himself and his bonuses.
Grabbing the baton from Darth and continuing the Qantas journey to no longer be known as the worlds most reputable safe carrier of choice.
No longer offering a premium service to business travellers, instead offering a two-bit checkin service and slow process just like Orange Star.

Congratulations Alan, enjoy that hard earned salary and the wealth it brings you. A real achievement making into the top tier salary list for executives.

[a_pilot]

Qantas, CEO pay = $23.9 million, revenue = $18 billion, fleet size 130

let's compare what other airline CEO's get: (converted to AUD)

2018 pay:
American airlines = CEO $17.6 million, revenue = $65.2 billion, fleet size 940 (largest airline in the world)
Delta airlines = CEO $22 million, revenue = $70 billion, fleet size 915 (2nd largest airline in the world)
United Airlines = CEO $15.4 million, revenue = $60.4 billion, fleet size 787
Southwest airlines = CEO $11.3 million, revenue = $32.2 billion, fleet size 753

From the 4 above, the average CEO in the US earns about $2.9 ($2.7 - $3.1) million per every $10 billion of revenue. This means the Qantas CEO should only earn about $4.9 - 5.6 million based on the Qantas revenue.

Qantas isn't even in the top 10 (regarding airline size ranking) yet the CEO earns more than the some of largest airlines in the world,

https://skift.com/2018/05/29/these-u-s-airline-ceos-made-the-most-money-last-year/

[a_pilot]

can anyone ever see a Qantas CEO doing this:

CEO catches the local bus to work (https://www.cbsnews.com/news/japan-airline-boss-sets-exec-example/)

CEO earns less than pilots (https://boingboing.net/2011/02/25/japan-airlines-ceo-p.html)

[TBM-Legend]

Remember its the Board and the Board remuneration committee that sets the CEO and other exec pay not them..

[Square Bear]

Remember its the Board and the Board remuneration committee that sets the CEO and other exec pay not them..

Cough, cough..."off course they do!!"

[t_cas]

Qantas, CEO pay = $23.9 million, revenue = $18 billion, fleet size 130

let's compare what other airline CEO's get: (converted to AUD)

2018 pay:
American airlines = CEO $17.6 million, revenue = $65.2 billion, fleet size 940 (largest airline in the world)
Delta airlines = CEO $22 million, revenue = $70 billion, fleet size 915 (2nd largest airline in the world)
United Airlines = CEO $15.4 million, revenue = $60.4 billion, fleet size 787
Southwest airlines = CEO $11.3 million, revenue = $32.2 billion, fleet size 753

From the 4 above, the average CEO in the US earns about $2.9 ($2.7 - $3.1) million per every $10 billion of revenue. This means the Qantas CEO should only earn about $4.9 - 5.6 million based on the Qantas revenue.

Qantas isn't even in the top 10 (regarding airline size ranking) yet the CEO earns more than the some of largest airlines in the world,

https://skift.com/2018/05/29/these-u-s-airline-ceos-made-the-most-money-last-year/

The US airlines would love to also generate TWICE the revenue per aircraft as QF seems to achieve on those metrics......

something about monopolistic position in the markets it operates in.

[cattletruck]

Did I find the answer to the reason for AJ's remuneration, I mean compensation, in the most unlikely of news articles?

https://www.smh.com.au/business/banking-and-finance/george-frazis-won-t-leave-any-stone-unturned-at-boq-20190905-p52ofi.html

[Fliegenmong]

Sad.....as someone who has ties back to the TAA days...I find it all very abohorrant.....I don't beleive for a mniute anyone woke up one morning and decided to 'ground an airline' on a random Saturday morning, and that was the end for me....not saying anyone lied...but accommodation was already arranged for many I believe....

I do all I can to avoid the 'Rat' now....supporting the QF group is to support AJ and his demonstrably over the top remuneration.

But I am one very very small little fishy indeed...but I do act on principle where possible, and avoinding QF group travel is my very own less than miniscule protest....somone has to.

I'm all for the Gay rights movement etc. but painting planes with rainbows is somewhat rather tacky, and if it's about equality.....then you have it AJ, start protesting about NOT holding the Mardi Gras...it's a cake ands eat it too thing.

Not overly religious myself, but I do support Israel Folaus (?) right to express his beliefs....to try & thwart his religious freedom is the same oppresion from which the Gay community sought to liberate itself from....so in essence Hypocritical to the core

My humble travel protests will never harm the good and honest folk at QF...but it brings a smile to my face when I know my $ does not translate to $ for Alan.....thankfully for the 'Coal Face' staff, that will not either...you can always count on an ignorant and apathetic Australian populace / electorate to ensure AJ has market balance...and a whole bunch of of 'soft corruption' affilates who have no scrupples when it comes to 'Chairmans lounge memberships' ....nowadays I feel fortunate not to be a member of the Australian 'Class' that expects 'Chairmans' membership.

My name is not 'tainted' and I made my (very small) principled stand.

I sleep well... :)

[dr dre]

But I am one very very small little fishy indeed...but I do act on principle where possible, and avoinding QF group travel is my very own less than miniscule protest....

I'm all for the Gay rights movement etc. but painting planes with rainbows is somewhat rather tacky, and if it's about equality.....then you have it AJ, start protesting about NOT holding the Mardi Gras...it's a cake ands eat it too thing.


FYI, the campaigns for gay rights and same sex marriage were supported by both airline groups in Australia (as well as most major transportation corporations like P&O Cruises and Greyhound Buses) so you’ll be hard pressed to travel domestically and not give dollars to a company that supports gay rights and the SSM campaign.

Israel Folau as well for that matter, almost all Australian corporations have those employee policies in place that he violated so again you’ll be hard pressed to give money to a corporation that wouldn’t have done a similar thing.

[SOPS]

When Qantas was ‘Qantas’... I mean the government owned airline, that flew around the world, how much did the person who ran it get paid?

You can not convince me that anyone is worth 25 million to run QF. Or any other company for that matter.

[Fliegenmong]

FYI, the campaigns for gay rights and same sex marriage were supported by both airline groups in Australia (as well as most major transportation corporations like P&O Cruises and Greyhound Buses) so you’ll be hard pressed to travel domestically and not give dollars to a company that supports gay rights and the SSM campaign.

Israel Folau as well for that matter, almost all Australian corporations have those employee policies in place that he violated so again you’ll be hard pressed to give money to a corporation that wouldn’t have done a similar thing.

Yeah yeah, i get that...we all have to show 'Solidarity' apparently....& I never had a problem...but having been accepting and accommodating for so long now I am being made to be 'Force fed' like a French goose....cannot it be accepted that i always accepted for so long...without being ostracised?......It starts to turn me against this 'equality' thing.....when I am not treated equal

[Fliegenmong]

If Israel Folau is afforded the freedom of speach in a free country....and the right to identify with a religous organisation..then I fail to see how that freedom of speach is a bad thing

If he was a muslim...and rather than suggestiong but insisting on eternal damnation by way of sexual orintation, then certain sectors of the community would be jumping to his defence.......just sayin'....

[V-Jet]

It’s not the $25m per se that grates so much, it’s what he’s done to get it. Acting in NO ONE’S interest but his own. If a clear and obvious path existed to make a decision for the long term benefit of the company, he’d deliberately not take it, but sell whatever it was for a few pieces of silver.

[snoop doggy dog]

As stated above, many times, people have swollowed his BS for a long time. He's basically not acted in the airlines' best interests since being there. Many examples include; trying to finish off Dixon's work, timely fleet renewal, outsourcing everything and culling experienced staff, giving away routes, stifling employees' pays for his own gain and creating a toxic work environment, etc, etc.
​​
Governments won't act, as it's a good earner potentially in an a executive /board role after politics, lounge is comfortable and the donations are nice.

Corporation leaders keep quiet, for obvious reasons.

People on the street buy this rubbish, which is spread by the PR machine, 'that all is well' and 'Airline staff are rich and don't deserve a pay rise.'

To top it off, not many employees will action/support meaningful Industrial Action to any of the above issues; including wage stagnation and a CEO taking ridiculous Pay Packets. Ridiculous Pay Packets will continue for some, as Unions are bad now, as seen in the right controlled media (wonder why wage growth is bad too now?), and/or can't be bothered and/or, it's not my problem, and/or any other lam ass excuse.

Cry on here, as it will continue, until some decide to take the Power back.

[help me jebus]

.....

[CurtainTwitcher]

Alan Joyce ASX notice of sale: https://www.asx.com.au/asxpdf/20190830/pdf/448264170rhrr4.pdf]Change (http:// [url) of Directors interest 30/08/2019

Just eyeballing it looks, like a sale of 347,012 shares at an average price of $5.9250 per share. His current holding is 1,338,000 shares.

[a_pilot]

The US airlines would love to also generate TWICE the revenue per aircraft as QF seems to achieve on those metrics......

something about monopolistic position in the markets it operates in


So you are basically saying airlines in the USA find it harder to generate as much per aircraft as Qantas due to stiff competition, whilst QF generates it's income a lot easier due to the monopolistic position.

Fine, doesn't this mean CEO's in the USA have to work a lot harder to generate revenue due to the stiff competition, and the reason that QF has so much revenue per aircraft is purely because of its monopolistic position and nothing to do with the work of the CEO.

Once again, the CEO's in the USA have to work so much harder amongst stiff competition but get paid less. In the meantime, QF is in a monopolistic position and the revenue just comes in without any hard work at all.

[RodH]

This sure smacks of arrogance and hypocrisy when the QF CEO is paid $23.9 million dollars. Makes you wonder just who is really doing the squeezing!!

Qantas, Virgin bosses say lack of monopoly regulation on airports squeezing consumers and airlines dry

The two big airline bosses will visit Canberra on Wednesday to urge Treasurer Josh Frydenberg to regulate airports to stop them charging excessive landing fees.[/SPOILER]Apologies for the large print but I don't know how to reduce the size.

[dragon man]

When Qantas was ‘Qantas’... I mean the government owned airline, that flew around the world, how much did the person who ran it get paid?

You can not convince me that anyone is worth 25 million to run QF. Or any other company for that matter.





Less than a line Captain on the 747.

[t_cas]

So you are basically saying airlines in the USA find it harder to generate as much per aircraft as Qantas due to stiff competition, whilst QF generates it's income a lot easier due to the monopolistic position.

Fine, doesn't this mean CEO's in the USA have to work a lot harder to generate revenue due to the stiff competition, and the reason that QF has so much revenue per aircraft is purely because of its monopolistic position and nothing to do with the work of the CEO.

Once again, the CEO's in the USA have to work so much harder amongst stiff competition but get paid less. In the meantime, QF is in a monopolistic position and the revenue just comes in without any hard work at all.

a_pilot.

For clarity... I am pointing out the differences. I did not say that CEO’s in the USA should get more if they emulated the returns.

[help me jebus]

I don’t know why you think selling a parcel of shares is a strategic move? AJ has been selling since 2015, if he’s halfway out the door that would indicate he has 4 years until he leaves. AJ has sold $40-50m worth of his shares since 2015.

The strategic move could be simply he doesn't see the SP moving much higher than its current range...

​​A CEO selling is generally frowned upon, so unless AJ needed the money, one should probably ask the question of why he sold?

[a_pilot]

Let's look at another perspective.

Don't you think it's appropriate for a CEO to get paid an appropriate amount to the size of the company (assets and employees), the same way pilots get paid appropriately to the size of aircraft they fly (MTOW and passengers) ?

A CEO of a larger company (more assets/aircraft/employees) might have to work harder, will have more responsibilities and will have to manage more people and assets compared to a CEO of a smaller company, and so it's only appropriate they get paid more.

Qantas - assets = $17.2 billion, employees = 26,000, aircraft = 130
Delta airlines - assets = $60.3 billion, employees = 86,500, aircraft = aircraft = 911
Southwest airlines - assets = $26.2 billion, employees = 59,800, aircraft = 753

Here is the CEO pay again:
Qantas - $23.9 mil
Delta - $22 mil
Southwest - $11.3 mil

Does it make sense (is it fair) that Qantas is a much smaller than the other airlines yet the CEO earns so much more ?

Southwest airlines, more than double the size of Qantas yet the CEO only earns half as much.

[dr dre]

Once again, the CEO's in the USA have to work so much harder amongst stiff competition but get paid less. In the meantime, QF is in a monopolistic position and the revenue just comes in without any hard work at all.

Actually no. The US is now basically a tri-opoly amongst 300 million of three major legacy carriers (AA, UA and DL) and SW filling the LCC void. The US government has ensured through a high level of protectionism, bailouts, preferential treatment, Chapter 11 bankruptcy, lucrative military transport contracts and obstacles thrown in the way of potential competitors (Norwegian). Agree with this or not it’s what the US government in the supposed “land of the free” has chosen to do:

US airlines launch epic hypocrisy at Middle East

The Australian government didn’t bail out Ansett, hasn’t really provided too much help for QF and has let foreign carriers dominate the international market. The only decision recently that has benefitted domestic carriers was the decision not to allow foreign cabotage in 2015, although there were plenty in cabinet at the time who wanted it and they’ll probably try again some time soon.

[das Uber Soldat]

The notion of RT labeling anything 'hypocritical' is rather hilarious.

[dragon man]

https://www.news.com.au/travel/travel-updates/alan-joyce-defends-eyewatering-24-million-salary-at-national-press-club/news-story/b131ba2c6dff1dfeb6deec81bfe14a6b

[Rated De]

https://www.news.com.au/travel/travel-updates/alan-joyce-defends-eyewatering-24-million-salary-at-national-press-club/news-story/b131ba2c6dff1dfeb6deec81bfe14a6b

Open the Oxford dictionary at hypocrite and there he is resplendent

[dragon man]

Open the Oxford dictionary at hypocrite and there he is resplendent


That page isn’t in his dictionary

[Rated De]

The Australian government didn’t bail out Ansett, hasn’t really provided too much help for QF and has let foreign carriers dominate the international market. The only decision recently that has benefitted domestic carriers was the decision not to allow foreign cabotage in 2015, although there were plenty in cabinet at the time who wanted it and they’ll probably try again some time soon.

Quite right Dr.

The Open skies and privatised airports have created inflow that a home grown airline has had to combat. Qantas deploying Jetstar is a rational, albeit misguided at times response.
Just as the private airport operators in Brisbane wanted up front millions from Qantas for a runway available in seven years was nothing more than thinly veiled extortion.

With respect to the US market, their protectionism is exceptional, all dressed up in nationalistic rhetoric.

Students of the industry will recall that the Deregulation of the US airline industry in 1978 produced initial competition before returning to a comfy oligopoly, where airlines of scale (with few exceptions) dominated both airfares and capacity..
Deregulation US style saw some nation states in Europe remove capacity constraints, opting for a "free market" with their US competitors.
Unfortunately as one of the first to try found out, the scale of the US carriers decimated their home grown airline.
The US love competition, provided of course their scale means they are the apex competitor.

Qantas is the same, crying out against monopoly price behaviour when they act exactly the same in their markets.

Sadly, with the regions most highly remunerated CEO leading the charge, relevant issues of competition and market structure are drowned out by staggering duplicity.

[Rated De]

Astute observers might have noticed Little Napoleon in an attempt to justify the indefensible obscene remuneration, let slip...

“It absolutely costs a lot more than it should to land an aircraft at these airports,” Mr Joyce said. “For us, the Qantas Group, airport charges are now the highest charges after fuel expenses, aircraft and wages.

It sure ain't a shortage of funds paid to under-performing management that is stopping them buying aircraft, nor is it pilot salary, despite their attempts at narrative.

It appears under a little pressure, Little Napoleon does wander off script.

https://www.news.com.au/travel/travel-updates/alan-joyce-defends-eyewatering-24-million-salary-at-national-press-club/news-story/b131ba2c6dff1dfeb6deec81bfe14a6b

[LeadSled]

Folks,
The facts are really beyond question, the unregulated monopoly pricing allowed major Australian airports owners is a serious economic problem
At the National Press Club today (and I thought Joyce spoke well and for once I agreed with almost everything he said) he laid out in detail what the intransigence of Perth airport on charges is costing WA economy across the categories, and I know, independently, that the figures he presented are credible.
He illustrated what the difference is compared to Heathrow --- all charges are independently set --- NO unregulated monopoly profits. He well and convincingly made the case that Australian airport charges generally are way out of line.
The Perth "case" is true, across the board, the way he ripped into Canberra airport made many in the room squirm, as he put the detailed case for the high airfares into/out of Canberra --- showing in detail the airport charges and their proportion of typical fares, and why no Jetstar in Canberra --- airport charges make it un-viable, and I believe him, in this case.
Tootle pip!!

[Paddleboat]

Sitting in a JQ roadshow recently, the point was raised that whilst executive remuneration ran far ahead of market values, pilot wages (at JQ at least) sat below, and increasingly so as time progresses. We're all beholden to the Qantas 3% wage policy we're told, their hands tied because of the 'threat to the business'. The excuses trotted out to justify this were quite something to behold I thought.

[topend3]

Had to laugh reading Joyce caring about how much it costs to park and get a coffee at the airport ! Haha he thinks that we believe this absolute tripe! Just trying to screw down airport pricing so they can increase their profits coming into some economic headwinds ...... they won’t be lowering airfares in line with airport pricing at all.

[Street garbage]

"My earnings are set by the shareholders"...pretty easy to do when you are the 15th biggest shareholder....

[CurtainTwitcher]

From a martin Wolf opinion piece today: Why rigged capitalism is damaging democracy (https://rlvntnews.com/2019/09/martin-wolf-why-rigged-capitalism-is-damaging-democracy/)

As the US essayist HL Mencken wrote: “For every complex problem, there is an answer that is clear, simple and wrong.” Pay linked to the share price gave management a huge incentive to raise that price, by manipulating earnings or borrowing money to buy the shares. Neither adds value to the company. But they can add a great deal of wealth to management. A related problem with governance is conflicts of interest, notably over independence of auditors.

Qantas have been spending enormous sums buying back shares to enrich management and not investing in more to improve productivity with newer fuel efficient aircraft. Exactly the problem Wolf argues more fully in the article. Joyce sits atop a monopoly gifted to him - through control of domestic slots and terminals and he is going to screw everyone else over to reward himself obscenely and well beyond any economic justification simply because he can.

A peruse of the Sydney Airport Slot Administration Manual (https://www.infrastructure.gov.au/aviation/airport/planning/files/Sydney_Airport_Slot_Administration_Manual.pdf) will reward the reader with the "how" slots are very carefully controlled into the Jewel In the Crown. Control SYD, and you control the domestic network profits. There is a very cosy relationship between QF, Virgin and Rex. Shareholding and voting rights of Airport Co-ordination Australia Pty Ltd (ACA), section 3.2.1, page 12 is the meat and potatoes.

[777Nine]

Sad.....as someone who has ties back to the TAA days...I find it all very abohorrant.....I don't beleive for a mniute anyone woke up one morning and decided to 'ground an airline' on a random Saturday morning, and that was the end for me....not saying anyone lied...but accommodation was already arranged for many I believe....

I do all I can to avoid the 'Rat' now....supporting the QF group is to support AJ and his demonstrably over the top remuneration.

But I am one very very small little fishy indeed...but I do act on principle where possible, and avoinding QF group travel is my very own less than miniscule protest....somone has to.

I'm all for the Gay rights movement etc. but painting planes with rainbows is somewhat rather tacky, and if it's about equality.....then you have it AJ, start protesting about NOT holding the Mardi Gras...it's a cake ands eat it too thing.

Not overly religious myself, but I do support Israel Folaus (?) right to express his beliefs....to try & thwart his religious freedom is the same oppresion from which the Gay community sought to liberate itself from....so in essence Hypocritical to the core

My humble travel protests will never harm the good and honest folk at QF...but it brings a smile to my face when I know my $ does not translate to $ for Alan.....thankfully for the 'Coal Face' staff, that will not either...you can always count on an ignorant and apathetic Australian populace / electorate to ensure AJ has market balance...and a whole bunch of of 'soft corruption' affilates who have no scrupples when it comes to 'Chairmans lounge memberships' ....nowadays I feel fortunate not to be a member of the Australian 'Class' that expects 'Chairmans' membership.

My name is not 'tainted' and I made my (very small) principled stand.

I sleep well... :)

Like I said to a mate of mine, this is the guy that got into a alliance with a state owned airline of which said state throws homosexuals in jail.

I wonder where his concern for social issues was then.

[777Nine]

Folks,
The facts are really beyond question, the unregulated monopoly pricing allowed major Australian airports owners is a serious economic problem
At the National Press Club today (and I thought Joyce spoke well and for once I agreed with almost everything he said) he laid out in detail what the intransigence of Perth airport on charges is costing WA economy across the categories, and I know, independently, that the figures he presented are credible.
He illustrated what the difference is compared to Heathrow --- all charges are independently set --- NO unregulated monopoly profits. He well and convincingly made the case that Australian airport charges generally are way out of line.
The Perth "case" is true, across the board, the way he ripped into Canberra airport made many in the room squirm, as he put the detailed case for the high airfares into/out of Canberra --- showing in detail the airport charges and their proportion of typical fares, and why no Jetstar in Canberra --- airport charges make it un-viable, and I believe him, in this case.
Tootle pip!!

In Australia, we pay top dollar to be inconvenienced.

[Traffic_Is_Er_Was]

he put the detailed case for the high airfares into/out of Canberra --- showing in detail the airport charges and their proportion of typical fares, and why no Jetstar in Canberra --- airport charges make it un-viable
The airport charges apply per pax, independent of the airline. A $300 QF airfare has $25 in airports fees attached and a $125 JQ airfare would have the same $25 attached. How many pax will buy the $125 JQ rather than the $300 QF? That's what Joyce is protecting by not putting JQ into CBR.
Additionally, the front end of those QF aircraft are most likely all filled very lucratively and exclusively by the taxpayer. The $300 seats down the back are just the gravy. Why give those away?

[deja vu]

Only one person has done more to screw Australian airline industry and its workers and they buried him a few months ago as a National Treasure. Go figure, a hero of the beer swillers. AJ will always remind me of a lemon meringue pie.

[Rated De]

The airport charges apply per pax, independent of the airline. A $300 QF airfare has $25 in airports fees attached and a $125 JQ airfare would have the same $25 attached. How many pax will buy the $125 JQ rather than the $300 QF? That's what Joyce is protecting by not putting JQ into CBR.
Additionally, the front end of those QF aircraft are most likely all filled very lucratively and exclusively by the taxpayer. The $300 seats down the back are just the gravy. Why give those away?

Albeit an extreme example, but demand elasticity (price sensitive customers) is the Achilles heel of the low fare airline model: It requires continued low price (thus high load factor) and is very difficult to fill if the price rises. That price rise can be either an attempt to raise yield (profit margin) or taxes.

Little Napoleon unwillingly is showing all the weakness of the model: It can't just fly where Qantas does, despite the wet dreams of IR as it can't generate yield.

[Traffic_Is_Er_Was]

It requires continued low price (thus high load factor) and is very difficult to fill if the price rises.
AJ is not even giving the CBR residents the choice by establishing a JQ base line. What he is disguising is that there are probably not enough TTTs (Tits Tatts n Thongs ie price sensitive customers) in CBR to warrant JQ - high loads would be inconsistent. The CBR demographic is more likely full-service.

[RickNRoll]

Canberra is growing rapidly and has a lot more people than well off senior public servants flying there. I have used Tiger and it is usually packed. All Joyce has to do is add on $25 to the price he would be charging normally if it is a deal breaker.

[Ichiban]

Watching National Press Club Address Alan Joyce and Paul Scurrah in iview


https://iview.abc.net.au/show/national-press-club-address/series/0/video/NC1911C033S00