Qantas - an inside view (Crikey)
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Qantas - an inside view (Crikey)
crikey.com.au
Qantas - an inside view
Pemberton Strong
Crikey's aviation expert
30 July 2004
Crikey has reported extensively on Qantas in recent months. Here's a well-informed insider view on the way an Australian business icon operates.
As of Sunday, August 1, there will be only 19 days to the release of the Qantas result for 2003-04 and there's every sign that it will among the best the airline has reported.
But don't expect much in the way of boasting. There will more in the same vein as the letter CEO Geoff Dixon wrote to The Australian Financial Review last week (More special interest pleading from Qantas). Of course he's right, but as exporters and importers have found for years there's no such thing as a "level playing field". Its a mirage, a figment of some businessman's dream or an economists momentary flash of desperation. Even the most committed and competitive of businessman knows there's a host of things and happenings out there that will tilt the playing field against you. It's how you react and adapt that separates the moaners from those who succeed.
But regardless of the cries for special help, Qantas continues to flesh out the empire, this week announcing new services from Melbourne to Los Angeles to counter new services added by Air New Zealand, which is flying via Auckland.
And it will go some way to also countering the push by Singapore (and maybe Cathay) to fly Australia-US, which is a sleeping issue at the moment. Qantas, like all successful businesses doesn't like to have too robust a level of competition and Singapore could certainly provide that on the trans-Pacific routes, currently one of Qantas's most profitable.
And Qantas wants to succeed while having a good, old fashioned Aussie whine about the unfairness of all those "furriners".
So what have they really to complain about? Well there's the service to the city of "lurve".
No, I don't mean Las Vegas, I mean Paris, France. Recently I remarked on the Qantas decision to abandon Paris to a code share with another airline (Cathay). Here's what a well informed Crikey reader wrote in reply: " Qantas pulled out of Paris because it lost $22 million last year and similar amounts the year before. Qantas would have liked to increase its services from three a week to seven (economies of scale would have brought it into profit). However the French government and Air France prevented this."
Hmmm interesting, and there was more.
"The introduction of the new business class product and the increase of services to London (more to come) and Los Angeles was a result of business travellers again travelling after SARS and the uncertainty of terrorism (which is been countered by increased security around the worlds at airports and by governments). It also is driven by relentless competition in the premium market by all airlines."
Advice to travellers. "Frequent flyer points are used extensively throughout the network but it is a complicated issue when and how to get it. In simple terms don't try to use them in business class (say Monday morning, Friday nights, etc.) and any other busy times the suits are travelling. Off-peak is the secret."
And other issues. "Pulling out of Rome and Paris is driven by short-term strategic thinking in my opinion. The average manager's corporate life has been reduced to five years and is heavily dependent on bonuses. It also is a fact that Qantas has no twin engine long range aircraft on international routes at the moment. Most major airlines operate twin engine aircraft to build up routes new or existing ones with lower yields". (Yet its cheap international carrier, Australian Airlines is flying old Boeing 767 twin engine planes on its services. Go figure!)
"Qantas does have four airbus A330-200 twin engine long range aircraft, but these are being used on domestic sectors.
"Only GOD, CEO Geoff Dixon, knows why."
"Recently the penny dropped and the boys, Geoff, and John Borghetti, the putative successor to Dixon? wanted to convert these Airbuses to international configuration with the lovely sky beds in it. However they were told the floors in the aircraft need to be strengthen at a cost of A$65 million. Ouch. So we keep flying our only long-range twin engine aircraft on domestic routes!
"Qantas relies heavily on feeder service from British Airways in London and American Airlines in Los Angeles. The majority of future growth is directed towards those ports. Given that Qantas has its major eggs in two baskets one can only hope there is no major hiccup there, otherwise the immediate impact would be severe."
On the move to establish an international cabin crew base in Brisbane, the insider had this to say.
"Qantas international cabin crew have bases in Sydney (around 85%), and the rest in Melbourne and Perth. There are around 25% of cabin crew who commute to Sydney, Melbourne or to a lesser degree to Perth. In your article you mention cabin crew leaving in on the Gold Coast and Brisbane having a little 'lurk'.
"You imply that they travel free domestically to work". (No it’s the businesses they keep on the side while not flying) "FACT: every cabin crew member or pilot (there are hundreds of pilots who also commute from anywhere in Australia) have to pay for their ticket to their home base. In addition your are on staff travel ticket where if there is no seat available and you can't travel. There's no such thing as booking and having a confirmed seat. Standby is the word, and it is not much fun after a 12- 18 hours night/day shift tour of duty from somewhere overseas or before you are going to work":
(Pemberton Strong: But it is a lower yield to Qantas for staff to be occupying a seat, even paying for it, than a travelling member of the public who pays more.) "And how far do allowances go in Sydney where the cost of accommodation is high. The allowances don't go very far.
"We live away from Sydney because of family and friends. And the tickets aren't so much cheaper these days either then the low cost carriers.
"A Gold Coast Qantas commuter I know recently booked several flights on a low cost domestic carrier as was cheaper then Qantas staff travel. So much for nice little "lurks."
"However operational requirements sometimes require cabin crew or pilots to operate from another port due to aircraft configuration changes or the start or beginning of a scheduled service. This is a common occurrence at all airlines. In Qantas it is less common with cabin crew as they can operate all different international aircraft types and also operate sometimes on domestic services. Pilots can only operate they aircraft type they are rated to fly (eg. 747-400 only) and have therefore a much higher positioning rates.
"It has a lot to do with crew scheduling. This in itself is worth a whole book in regard to incompetence. Wages are depending on your category. International Qantas has customer service managers (in charge of the flight), supervisors (in charge of economy), business first flight attendants (first and business class) and flight attendants. Rates are based on category."
And then there is the contentious issue of that international crew base in London, to be run with the assistance of labour hire group, Adecco, no doubt. "Qantas has currently overseas bases in Auckland and Bangkok. These 'little foreign slaves' earn half or less than Australian-based cabin crew."
"Conditions are third world for them as they have no rights whatsoever. "Its like "here is your roster, shut up, perform otherwise your contract will not be renewed in two to three years. "We also reserve the right to fire you anytime we think we don't like you, COURTESY OF ADECCO/ QANTAS. And these Adecco managers are gold frequent flyers on Qantas regular travellers in first and business class. Needless to say Geoff Dixon (GOD) and his mates are also chairman lounge members and get frequent flyer points for every trip they do in first class.
"And NO, does not cost them a cent. And then they use those points for family and friends to travel also free. No problem using the points for bookings there. Good isn't it?
"The proposed London base is again being forced upon Australian crew to cut costs and undermine the power of the Australian cabin crew union. I concur with your assessment about British wages. Qantas UK crew (offered to Qantas International and domestic crews initially), are Australian cabin crew (a small initial percentage has to be English) on the London base on a two year contract will (if it gets up, watch this space) be eventually replaced by English crew (pick a Leicester, Manchester or Irish accent). The lady behind this scheme is Lesley Grant, New Zealand born, with experience at Air New Zealand and Ansett!
"Finally, ALL bases have managers, assistant managers and support staff. Currently ALL senior managers pay is performance-based. Unless they can provide plans and results how to "screw" those below them financially they are out very quickly.
"Hence Geoff "(GOD)s sustainable "screwing program" of $A1.5 billion.
==========================================
Qantas - an inside view
Pemberton Strong
Crikey's aviation expert
30 July 2004
Crikey has reported extensively on Qantas in recent months. Here's a well-informed insider view on the way an Australian business icon operates.
As of Sunday, August 1, there will be only 19 days to the release of the Qantas result for 2003-04 and there's every sign that it will among the best the airline has reported.
But don't expect much in the way of boasting. There will more in the same vein as the letter CEO Geoff Dixon wrote to The Australian Financial Review last week (More special interest pleading from Qantas). Of course he's right, but as exporters and importers have found for years there's no such thing as a "level playing field". Its a mirage, a figment of some businessman's dream or an economists momentary flash of desperation. Even the most committed and competitive of businessman knows there's a host of things and happenings out there that will tilt the playing field against you. It's how you react and adapt that separates the moaners from those who succeed.
But regardless of the cries for special help, Qantas continues to flesh out the empire, this week announcing new services from Melbourne to Los Angeles to counter new services added by Air New Zealand, which is flying via Auckland.
And it will go some way to also countering the push by Singapore (and maybe Cathay) to fly Australia-US, which is a sleeping issue at the moment. Qantas, like all successful businesses doesn't like to have too robust a level of competition and Singapore could certainly provide that on the trans-Pacific routes, currently one of Qantas's most profitable.
And Qantas wants to succeed while having a good, old fashioned Aussie whine about the unfairness of all those "furriners".
So what have they really to complain about? Well there's the service to the city of "lurve".
No, I don't mean Las Vegas, I mean Paris, France. Recently I remarked on the Qantas decision to abandon Paris to a code share with another airline (Cathay). Here's what a well informed Crikey reader wrote in reply: " Qantas pulled out of Paris because it lost $22 million last year and similar amounts the year before. Qantas would have liked to increase its services from three a week to seven (economies of scale would have brought it into profit). However the French government and Air France prevented this."
Hmmm interesting, and there was more.
"The introduction of the new business class product and the increase of services to London (more to come) and Los Angeles was a result of business travellers again travelling after SARS and the uncertainty of terrorism (which is been countered by increased security around the worlds at airports and by governments). It also is driven by relentless competition in the premium market by all airlines."
Advice to travellers. "Frequent flyer points are used extensively throughout the network but it is a complicated issue when and how to get it. In simple terms don't try to use them in business class (say Monday morning, Friday nights, etc.) and any other busy times the suits are travelling. Off-peak is the secret."
And other issues. "Pulling out of Rome and Paris is driven by short-term strategic thinking in my opinion. The average manager's corporate life has been reduced to five years and is heavily dependent on bonuses. It also is a fact that Qantas has no twin engine long range aircraft on international routes at the moment. Most major airlines operate twin engine aircraft to build up routes new or existing ones with lower yields". (Yet its cheap international carrier, Australian Airlines is flying old Boeing 767 twin engine planes on its services. Go figure!)
"Qantas does have four airbus A330-200 twin engine long range aircraft, but these are being used on domestic sectors.
"Only GOD, CEO Geoff Dixon, knows why."
"Recently the penny dropped and the boys, Geoff, and John Borghetti, the putative successor to Dixon? wanted to convert these Airbuses to international configuration with the lovely sky beds in it. However they were told the floors in the aircraft need to be strengthen at a cost of A$65 million. Ouch. So we keep flying our only long-range twin engine aircraft on domestic routes!
"Qantas relies heavily on feeder service from British Airways in London and American Airlines in Los Angeles. The majority of future growth is directed towards those ports. Given that Qantas has its major eggs in two baskets one can only hope there is no major hiccup there, otherwise the immediate impact would be severe."
On the move to establish an international cabin crew base in Brisbane, the insider had this to say.
"Qantas international cabin crew have bases in Sydney (around 85%), and the rest in Melbourne and Perth. There are around 25% of cabin crew who commute to Sydney, Melbourne or to a lesser degree to Perth. In your article you mention cabin crew leaving in on the Gold Coast and Brisbane having a little 'lurk'.
"You imply that they travel free domestically to work". (No it’s the businesses they keep on the side while not flying) "FACT: every cabin crew member or pilot (there are hundreds of pilots who also commute from anywhere in Australia) have to pay for their ticket to their home base. In addition your are on staff travel ticket where if there is no seat available and you can't travel. There's no such thing as booking and having a confirmed seat. Standby is the word, and it is not much fun after a 12- 18 hours night/day shift tour of duty from somewhere overseas or before you are going to work":
(Pemberton Strong: But it is a lower yield to Qantas for staff to be occupying a seat, even paying for it, than a travelling member of the public who pays more.) "And how far do allowances go in Sydney where the cost of accommodation is high. The allowances don't go very far.
"We live away from Sydney because of family and friends. And the tickets aren't so much cheaper these days either then the low cost carriers.
"A Gold Coast Qantas commuter I know recently booked several flights on a low cost domestic carrier as was cheaper then Qantas staff travel. So much for nice little "lurks."
"However operational requirements sometimes require cabin crew or pilots to operate from another port due to aircraft configuration changes or the start or beginning of a scheduled service. This is a common occurrence at all airlines. In Qantas it is less common with cabin crew as they can operate all different international aircraft types and also operate sometimes on domestic services. Pilots can only operate they aircraft type they are rated to fly (eg. 747-400 only) and have therefore a much higher positioning rates.
"It has a lot to do with crew scheduling. This in itself is worth a whole book in regard to incompetence. Wages are depending on your category. International Qantas has customer service managers (in charge of the flight), supervisors (in charge of economy), business first flight attendants (first and business class) and flight attendants. Rates are based on category."
And then there is the contentious issue of that international crew base in London, to be run with the assistance of labour hire group, Adecco, no doubt. "Qantas has currently overseas bases in Auckland and Bangkok. These 'little foreign slaves' earn half or less than Australian-based cabin crew."
"Conditions are third world for them as they have no rights whatsoever. "Its like "here is your roster, shut up, perform otherwise your contract will not be renewed in two to three years. "We also reserve the right to fire you anytime we think we don't like you, COURTESY OF ADECCO/ QANTAS. And these Adecco managers are gold frequent flyers on Qantas regular travellers in first and business class. Needless to say Geoff Dixon (GOD) and his mates are also chairman lounge members and get frequent flyer points for every trip they do in first class.
"And NO, does not cost them a cent. And then they use those points for family and friends to travel also free. No problem using the points for bookings there. Good isn't it?
"The proposed London base is again being forced upon Australian crew to cut costs and undermine the power of the Australian cabin crew union. I concur with your assessment about British wages. Qantas UK crew (offered to Qantas International and domestic crews initially), are Australian cabin crew (a small initial percentage has to be English) on the London base on a two year contract will (if it gets up, watch this space) be eventually replaced by English crew (pick a Leicester, Manchester or Irish accent). The lady behind this scheme is Lesley Grant, New Zealand born, with experience at Air New Zealand and Ansett!
"Finally, ALL bases have managers, assistant managers and support staff. Currently ALL senior managers pay is performance-based. Unless they can provide plans and results how to "screw" those below them financially they are out very quickly.
"Hence Geoff "(GOD)s sustainable "screwing program" of $A1.5 billion.
==========================================
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Absolutely positively 100% correct.
Could not agree more with this article - Steve Creedy and Tom Balantyne takev note next time you embark on a pilot bashing exercise in one of your tabloids.
Could not agree more with this article - Steve Creedy and Tom Balantyne takev note next time you embark on a pilot bashing exercise in one of your tabloids.
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God I loved the bit about how hard staff travel is after a long duty.
And how they have to live away from Sydney because of family and friends." Have to" for gods sake!
Which other group of workers in this country has the option of living hundreds of kilometres away from their workplace.
I'll let on a big secret. Live in Sydney, or some other Qantas base, and stop whinging. Its like hitting yourself on the head with a hammer. Its great when you stop.
And how they have to live away from Sydney because of family and friends." Have to" for gods sake!
Which other group of workers in this country has the option of living hundreds of kilometres away from their workplace.
I'll let on a big secret. Live in Sydney, or some other Qantas base, and stop whinging. Its like hitting yourself on the head with a hammer. Its great when you stop.
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Most of the article is quite correct. Mofo, the info that you highlight hasn't been well put by the "insider". Most of us live away from Sydney for two reasons. Lifestyle (ie not living in the hell-hole-rat-race that Sydney is), and finances (Sydney is just too goddamn expensive - it is cheaper to commute).
Otherwise the article is 100% accurate and is a reflection of the attitudes of most staff.
Otherwise the article is 100% accurate and is a reflection of the attitudes of most staff.
Qoute:
Recently I remarked on the Qantas decision to abandon Paris to a code share with another airline (Cathay). Here's what a well informed Crikey reader wrote in reply: " Qantas pulled out of Paris because it lost $22 million last year and similar amounts the year before. Qantas would have liked to increase its services from three a week to seven (economies of scale would have brought it into profit). However the French government and Air France prevented this."
The way l understand the French requirements for daily services to Paris is for the operator in question to service another French port three times a week to be eligible.
This is "preventable" by the operator, and not prevented by the authorities or AF.
QF chose not to service another port for the daily Paris service. Instead they abandon the run.
All other operators have to jump through the same hoops, just as all the other operators have to jump through similar hoops to get Sydney slots.
Selective information.
halas
Recently I remarked on the Qantas decision to abandon Paris to a code share with another airline (Cathay). Here's what a well informed Crikey reader wrote in reply: " Qantas pulled out of Paris because it lost $22 million last year and similar amounts the year before. Qantas would have liked to increase its services from three a week to seven (economies of scale would have brought it into profit). However the French government and Air France prevented this."
The way l understand the French requirements for daily services to Paris is for the operator in question to service another French port three times a week to be eligible.
This is "preventable" by the operator, and not prevented by the authorities or AF.
QF chose not to service another port for the daily Paris service. Instead they abandon the run.
All other operators have to jump through the same hoops, just as all the other operators have to jump through similar hoops to get Sydney slots.
Selective information.
halas
The Reverend
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The way l understand the French requirements for daily services to Paris is for the operator in question to service another French port three times a week to be eligible.
Moderate, Modest & Mild.
Needless to say Geoff Dixon (GOD) and his mates are also chairman lounge members and get frequent flyer points for every trip they do in first class.
Staff are ineligible for FF points, when travelling under Company directive, or on staff discounted travel.
If "GOD" (and other high level QF employees) are receiving these benefits - and these are the people who LEAST need them - then other staff should not be discriminated against, imo, and must also be given the same.
BTW, MoFo, I couldn't see where the article stated, "Have to" live away from Sydney for family and friends..", however it may well be a distinct possibility if there are several family members dependant upon them.
Which other group of workers in this country has the option of living hundreds of kilometres away from their workplace.
Sydney is NOT the "workplace" of flight crews, it is their BASE.
Their "workplace" is an aircraft, which they are required to travel with, from city to city, and country to country - therefore, their presence in Sydney might be required only 2 or 3 times in a month.
Aero Pelican made a pretty good income over the decades, flying daily commuters into, and out of, Sydney!
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Crikey didnt mention the AUD $100 million it has cost QF to fit the A330s with enough galley space for two meal services.
Galley bulkheads in Airbus aircraft it seems are integral to the airframe structure and not modular as in the Boeing product.
Some bean counter decided to specify when ordering an aircraft that is designed to fly for 14 hours, enough galley space for only ONE meal service.............!!!
Despite the protests of every OPERATIONAL department in the company.
What's the bet he got himself a promotion????
L2P
Galley bulkheads in Airbus aircraft it seems are integral to the airframe structure and not modular as in the Boeing product.
Some bean counter decided to specify when ordering an aircraft that is designed to fly for 14 hours, enough galley space for only ONE meal service.............!!!
Despite the protests of every OPERATIONAL department in the company.
What's the bet he got himself a promotion????
L2P
Last edited by Left2primary; 31st Jul 2004 at 22:18.
hot dog
As l said...."the operator in question". This happens to be Qantas.
Cathay may have another agreement, but the hoops are still there. Perhaps cargo help out in some way? l dunno.
halas
Cathay may have another agreement, but the hoops are still there. Perhaps cargo help out in some way? l dunno.
halas
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Left 2 Primary...they have decided not to spend the $91 million and keep the first 4 A330s on domestic.. how completely inept are our management- if peolple at the coal face stuffed up as much as they did, we'd crash a plane a week
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Invertedlandings,
I disagree.......................................
If people at Qf's coal face were as inept as their management QF wouldnt be able to get an aircraft in the air.
Let alone crash one.
L2P
I disagree.......................................
If people at Qf's coal face were as inept as their management QF wouldnt be able to get an aircraft in the air.
Let alone crash one.
L2P
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wallabie,
Qf have announced already that they will codeshare on this route and that they flying will be done by AF.
Our hardware stops flying there sometime around the end of the year.
Do a google search on Qantas-Paris.
L2P
Qf have announced already that they will codeshare on this route and that they flying will be done by AF.
Our hardware stops flying there sometime around the end of the year.
Do a google search on Qantas-Paris.
L2P
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Pemberton Strong's knowledge of aviation and the company she whinges about so much is not as great as she would believe. Her articles are littered with erroneous information. She needs to get a better of understanding of the company and the industry when launching such attacks.
One of her most recent articles stated that JQ employees had no benefits at all and were employed by Adecco. And that Jetstar was only a brand name and the AOC was still held by Impulse. The misinformation went on. I sent her an email advising her what was actually the case and cc'd it to her manager. He seemed the least bit apologetic for the inaccurancies. Pemberton never sent a reply.
One of her most recent articles stated that JQ employees had no benefits at all and were employed by Adecco. And that Jetstar was only a brand name and the AOC was still held by Impulse. The misinformation went on. I sent her an email advising her what was actually the case and cc'd it to her manager. He seemed the least bit apologetic for the inaccurancies. Pemberton never sent a reply.
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Hey Ditzy, what do you expect? These pricks couldn't lie straight in bed. Never trust them. It always appears that journalists never let fact get in the way of a good story. Articles like you said you read, if they have apparent wrong facts and untruths, just go to prove what scumbags they are. They're worse than used car salesmen!
Have you tried writing a letter to the editor (assuming of course that they'll publish it)? Or even complain to the Media Council or whatever they call themselves.
Have you tried writing a letter to the editor (assuming of course that they'll publish it)? Or even complain to the Media Council or whatever they call themselves.
Last edited by The Enema Bandit; 8th Aug 2004 at 00:04.
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Right on Enema Bandit, journo's, scumbags of the highest order.
I have written a serious complaint with Police backing to the Media Council years ago. Like complaining to your Mother In Law about your wife. Nothing happened not even an apology.
I have nothing but contempt for "journo's" and all connected with them.
Re QF the fact that they don't have an International Pure Freight operation in their own right just shows how inept the management is.
Airfreight continues to grow at a phenomenal rate Worldwide, where are QF -- NOWHERE !!
I have written a serious complaint with Police backing to the Media Council years ago. Like complaining to your Mother In Law about your wife. Nothing happened not even an apology.
I have nothing but contempt for "journo's" and all connected with them.
Re QF the fact that they don't have an International Pure Freight operation in their own right just shows how inept the management is.
Airfreight continues to grow at a phenomenal rate Worldwide, where are QF -- NOWHERE !!
