The End For Qantas?
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The statement made by Mr Joyce is quite correct.
With that in mind though I would have to question the current strategy of Jetstar - adding another 50 staff to work on the international plans, now offer per-assigned seats, carry cargo, and are moving towards two class, using the parents aircraft...Hmmm is that a baby QF??
Wasn't Mr Joyce quoted as saying [inpart from Monty] "...Some budget offshoots of major carriers made the mistake of adopting a cost base akin to their parent airlines. Song was one. “What Song did was use aircraft from the parent group,”
With that in mind though I would have to question the current strategy of Jetstar - adding another 50 staff to work on the international plans, now offer per-assigned seats, carry cargo, and are moving towards two class, using the parents aircraft...Hmmm is that a baby QF??
Wasn't Mr Joyce quoted as saying [inpart from Monty] "...Some budget offshoots of major carriers made the mistake of adopting a cost base akin to their parent airlines. Song was one. “What Song did was use aircraft from the parent group,”
In time
Capt Claret - have to say your Crystal Ball looks a lot more believeable than Dixon's!
rescue 1
No doubt Jetstar will morph closer and closer to Qantas in time.
However, note the relevant words in your quote - "cost base".
Make no mistake - Jetstar will never approach Qantas cost wise, but Qantas may well get towards Jetstar, if you catch my drift........
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What do you reckon will happen to AO captainrats??? Jetstar is hugely succesful and will be the first to get new 787's while there is no mention of AO recently apart from one lonely,soon to be obsolete 767, for extra runs to Japan.
Keep your eyes posted to the ASX website. They will be the first to know of the "official" windup of AO.
Keep your eyes posted to the ASX website. They will be the first to know of the "official" windup of AO.
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You "experts" seem to forget or you are not aware that the role that AO fills is one that QF want it to fill. If this means it operates with little or no profit, then so be it. If QF if were to do these services, the results would be far worse for the "group".
The jet* model as it is now, would not be suitable for the Japan market and would most likely be rejected by that market. As QF want to keep serving Japan, then it will keep AO as its cost base is somewhat less than QF.
AO is a success in many way and provides customer service which far exceeds the other group carriers - something I hear they are trying to copy.
Be assurred that AO is part of the QF master plan. As for aircraft types, my guess would be that AO will be the last to operate the 767 within the group - and that would mean at least another 5+ years for the 767.
The jet* model as it is now, would not be suitable for the Japan market and would most likely be rejected by that market. As QF want to keep serving Japan, then it will keep AO as its cost base is somewhat less than QF.
AO is a success in many way and provides customer service which far exceeds the other group carriers - something I hear they are trying to copy.
Be assurred that AO is part of the QF master plan. As for aircraft types, my guess would be that AO will be the last to operate the 767 within the group - and that would mean at least another 5+ years for the 767.
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Triadic,
Your argument that AO loses less money than QF would and is therefore a financial success holds as much water as a colander.
GD thinks of only two things,the first is how to make more profit for the group and the second is how to maximize his bonus.
If the cost base of J* international is less than AO and from all indications it will be then AO has a lot to worry about.
It does not matter how much profit AO makes because if J* international can make more with a lower cost base then AO will go the way of the dinosaurs .There is no sentimentality for the AO brand as there is with QF.
Your argument that AO loses less money than QF would and is therefore a financial success holds as much water as a colander.
GD thinks of only two things,the first is how to make more profit for the group and the second is how to maximize his bonus.
If the cost base of J* international is less than AO and from all indications it will be then AO has a lot to worry about.
It does not matter how much profit AO makes because if J* international can make more with a lower cost base then AO will go the way of the dinosaurs .There is no sentimentality for the AO brand as there is with QF.
Last edited by lowerlobe; 21st Dec 2005 at 20:36.
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king oath from the previous page, I agree that by halving pilots' salaries, dixon won't reduce operating costs by half, anf that pilot costs are a minor part of the overall costs, but if the current bill for pilots is say 400 Million, then if he halves it, the bottom line is increased by 200 million. That would have to be worth 5 million to him as a bonus wouldn't it???
That's what it's about mate, not increasing efficience or halving the operating costs; it's about Dixon's bonus, no more and no less.
And if he can somehow miraculously halve the operating costs, then that's worth another few percent on the bonus.
lowerlobe I reckon you've go t it back to front; Geoff thinks only of how he can increase his bonus but if he manages that, the profit for the group has probably increased. He's a little like a fund manager; F#$% the investors, I get my fees whatever the performance.
That's what it's about mate, not increasing efficience or halving the operating costs; it's about Dixon's bonus, no more and no less.
And if he can somehow miraculously halve the operating costs, then that's worth another few percent on the bonus.
lowerlobe I reckon you've go t it back to front; Geoff thinks only of how he can increase his bonus but if he manages that, the profit for the group has probably increased. He's a little like a fund manager; F#$% the investors, I get my fees whatever the performance.
Last edited by relax737; 25th Dec 2005 at 03:51.
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Relax
You are right but Darths bonus is inextricably linked to the performance or rather bottom line of the group.
It is not really about revenue either but about profit as a result of slash and burn management which is not that difficult or skillfull but requires and an uncaring attitude to other people.
Now if the unthinkable occured and we had a boss who actually nurtured morale and developed new products and markets ,we would really be going places and maybe our share price might reflect that confidence...but as the line goes "I'm dreaming"
You are right but Darths bonus is inextricably linked to the performance or rather bottom line of the group.
It is not really about revenue either but about profit as a result of slash and burn management which is not that difficult or skillfull but requires and an uncaring attitude to other people.
Now if the unthinkable occured and we had a boss who actually nurtured morale and developed new products and markets ,we would really be going places and maybe our share price might reflect that confidence...but as the line goes "I'm dreaming"
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I see the add for the B787 in Jetstar colours now adds "a Qantas Group airline" like on the side of AO aircraft.
I wonder what Virgin will respond with given the commitment to run JQ as an independent to the big brother?
Might be time to call in the ACCC.
I wonder what Virgin will respond with given the commitment to run JQ as an independent to the big brother?
Might be time to call in the ACCC.
