Airbus may offer Qantas a stop-gap
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Airbus may offer Qantas a stop-gap
Fri "Herald Sun"
Airbus may offer airline a stop-gap
Geoff Easdown
23jun06
TROUBLED aircraft builder Airbus is expected to provide Qantas with stand-in planes because of the late delivery of the super jumbo, the A380.
The national flag carrier is negotiating an arrangement to get a number of stand-in replacements, possibly twin-engine A330-300 series jets.
The 297-seat A330 has long been in service with Qantas and is used on its China and India routes.
It has about half the passenger and freight capacity of the big super jet.
Chief executive Geoff Dixon yesterday confirmed that Qantas was "looking and talking" to Airbus about stop-gap aircraft.
He was adamant that Airbus would properly compensate Qantas for the hold-up that has upset planning arrangements for the introduction of the aircraft.
"We won't just seek it, we will get it," Mr Dixon declared, addressing reporters after speaking to an Asia Society lunch in Melbourne.
At the lunch and briefing reporters later, he said Qantas was doing it hard because of rising fuel prices and the airline would have to make radical decisions over the next six months.
"That's not something that I am willing to discuss now but we will do it with a lot of sensitivity," he said, indicating that major restructuring was happening within the airline.
"We have plans in place and we will implement them as we see fit."
On the A380 issue, Mr Dixon said the possibility of getting temporary replacements existed.
But he would not discuss how much Qantas expected to be paid in compensation for delays over the A380, other than to say: "We have contracts with conditions that require Airbus to compensate us based on delivery timetables and many of those have been activated.
"We have no intention of changing our order or anything like that," Mr Dixon said.
"We want to work with Airbus and help them embody the aircraft that we are going to put on and get this plane in the air as quickly as possible".
Qantas, which has ordered 12 planes, last week despatched to Europe its number three executive, John Borghetti, to investigate the the delay after learning that its first A380 would fly into Australia 12 months late due to wiring problems.
The airline initially expected that it would get its first plane this October but now must wait until October-December next year.
This will be almost a year behind its arch rival on the London long -haul route, Singapore Airlines. Mr Dixon said Qantas expected Airbus to respond to the carrier's delivery schedule for new long-haul aircraft.
On oil prices which will drive a billion dollar hole this year in the carrier's accounts, Mr Dixon said fuel represented 28 per cent of the total operating costs of the Qantas brand and about 36-37 per cent of discount carrier Jetstar.
He said the fuel surcharge which was increased in April was not under review.
Qantas shares fell for a second day yesterday and closed 3 down at $3.
============================================
Airbus may offer airline a stop-gap
Geoff Easdown
23jun06
TROUBLED aircraft builder Airbus is expected to provide Qantas with stand-in planes because of the late delivery of the super jumbo, the A380.
The national flag carrier is negotiating an arrangement to get a number of stand-in replacements, possibly twin-engine A330-300 series jets.
The 297-seat A330 has long been in service with Qantas and is used on its China and India routes.
It has about half the passenger and freight capacity of the big super jet.
Chief executive Geoff Dixon yesterday confirmed that Qantas was "looking and talking" to Airbus about stop-gap aircraft.
He was adamant that Airbus would properly compensate Qantas for the hold-up that has upset planning arrangements for the introduction of the aircraft.
"We won't just seek it, we will get it," Mr Dixon declared, addressing reporters after speaking to an Asia Society lunch in Melbourne.
At the lunch and briefing reporters later, he said Qantas was doing it hard because of rising fuel prices and the airline would have to make radical decisions over the next six months.
"That's not something that I am willing to discuss now but we will do it with a lot of sensitivity," he said, indicating that major restructuring was happening within the airline.
"We have plans in place and we will implement them as we see fit."
On the A380 issue, Mr Dixon said the possibility of getting temporary replacements existed.
But he would not discuss how much Qantas expected to be paid in compensation for delays over the A380, other than to say: "We have contracts with conditions that require Airbus to compensate us based on delivery timetables and many of those have been activated.
"We have no intention of changing our order or anything like that," Mr Dixon said.
"We want to work with Airbus and help them embody the aircraft that we are going to put on and get this plane in the air as quickly as possible".
Qantas, which has ordered 12 planes, last week despatched to Europe its number three executive, John Borghetti, to investigate the the delay after learning that its first A380 would fly into Australia 12 months late due to wiring problems.
The airline initially expected that it would get its first plane this October but now must wait until October-December next year.
This will be almost a year behind its arch rival on the London long -haul route, Singapore Airlines. Mr Dixon said Qantas expected Airbus to respond to the carrier's delivery schedule for new long-haul aircraft.
On oil prices which will drive a billion dollar hole this year in the carrier's accounts, Mr Dixon said fuel represented 28 per cent of the total operating costs of the Qantas brand and about 36-37 per cent of discount carrier Jetstar.
He said the fuel surcharge which was increased in April was not under review.
Qantas shares fell for a second day yesterday and closed 3 down at $3.
============================================
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which pile of crap do we get now
Given the stunning success of the A330 into Q service
, another Airbus will ensure an indecisive Dixon train smash just keeps on trucking.....
$3.00 and in freefall....
His spectacular lack of vision is evident to all
, another Airbus will ensure an indecisive Dixon train smash just keeps on trucking..... $3.00 and in freefall....
His spectacular lack of vision is evident to all
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Dear QF Insider,
Mixing rather useless metaphors? How can a train smash keep on trucking? How is Dixon indecisive? Rather the opposite I would say. Your sarcastic commment on A330s shows you know very little of them and their economics.
Now you would have it that if QF had ordered Boeings that all would be well with the share price?
You obviously don't like his pragmatic management style but it is obvious that his vision is the clearest in the Australian industry.
You and your mates are the ones who have the blinkers on. Go on, have a whinge...wish we were back in 1985.
Given the stunning success of the A330 into Q service , another Airbus will ensure an indecisive Dixon train smash just keeps on trucking.....
, another Airbus will ensure an indecisive Dixon train smash just keeps on trucking.....
$3.00 and in freefall....
His spectacular lack of vision is evident to all
You and your mates are the ones who have the blinkers on. Go on, have a whinge...wish we were back in 1985.
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yeah back to 1985 and school....
Well considering my knowedge of the A330 I think i can comment the train smash keeps on going...Ask around the A330 hasn't been a spectacular sucess...
If pragmatic "modern day" professional management wipes 25% of shareholder wealth in four months and this time it isnt SARS, the Iraq war, 911 but fuel costs, which unless I'm missing something isn't exclusive to QF...I will gladly return to a less modern time
ever wondered how in hell BA increased revenue and profit in times of high fuel prices?
Well considering my knowedge of the A330 I think i can comment the train smash keeps on going...Ask around the A330 hasn't been a spectacular sucess...
If pragmatic "modern day" professional management wipes 25% of shareholder wealth in four months and this time it isnt SARS, the Iraq war, 911 but fuel costs, which unless I'm missing something isn't exclusive to QF...I will gladly return to a less modern time
ever wondered how in hell BA increased revenue and profit in times of high fuel prices?
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Well considering my knowedge of the A330 I think i can comment the train smash keeps on going...Ask around the A330 hasn't been a spectacular sucess...
If pragmatic "modern day" professional management wipes 25% of shareholder wealth in four months and this time it isnt SARS, the Iraq war, 911 but fuel costs, which unless I'm missing something isn't exclusive to QF...I will gladly return to a less modern time
ever wondered how in hell BA increased revenue and profit in times of high fuel prices?
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Lucius...FYI
The demise of Ansett was brought about by its ownership,not its management.
Its demise was also hastened by Air New Zealand who hadnt conducted due diligence adequately.
Qantas is a company run by consultants.You do not have to be a genius to cut costs by retrenching staff.
Managing the revenue base does however require some skill.Skills so far not displayed by current management.
The purchase of Airbus A330/200/300 IS a farce.It is not an aircraft designed for the purpose Qantas intended.
They were, however,cheap
QF Management have destroyed shareholder value.As has been rightly pointed out,fuel costs impact evey airline.BA management have increased revenue and profit by increasing fares.ie passing on costs to the consumer.
Fundamental business practice.
Lucius your posts could not have been written better by Dixon himself.
Why if QF is in such dire straits do incentive bonuses still continue?I would have thought that salaries were paid to individuals to do a job.Why then do they need a bonus?
While everyone else has to tighten their belts, some senior managers have splashed out on luxury vehicles like Porsches.
Totally inappropriate considering the circumstances
ENRON HIH FAI QANTAS...The perfect management Quartet
Its demise was also hastened by Air New Zealand who hadnt conducted due diligence adequately.
Qantas is a company run by consultants.You do not have to be a genius to cut costs by retrenching staff.
Managing the revenue base does however require some skill.Skills so far not displayed by current management.
The purchase of Airbus A330/200/300 IS a farce.It is not an aircraft designed for the purpose Qantas intended.
They were, however,cheap
QF Management have destroyed shareholder value.As has been rightly pointed out,fuel costs impact evey airline.BA management have increased revenue and profit by increasing fares.ie passing on costs to the consumer.
Fundamental business practice.
Lucius your posts could not have been written better by Dixon himself.
Why if QF is in such dire straits do incentive bonuses still continue?I would have thought that salaries were paid to individuals to do a job.Why then do they need a bonus?
While everyone else has to tighten their belts, some senior managers have splashed out on luxury vehicles like Porsches.
Totally inappropriate considering the circumstances
ENRON HIH FAI QANTAS...The perfect management Quartet
I think some of the posters here need to have a talk to some BA staff to get a better idea how they increased their profits. To a very large extent it was through staff redundancies that has inflicted huge pain on the BA workforce and their families. Sound familiar?
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The demise of Ansett was brought about by its ownership,not its management.
You guys are incredible.
Managing the revenue base does however require some skill.Skills so far not displayed by current management.
The purchase of Airbus A330/200/300 IS a farce.It is not an aircraft designed for the purpose Qantas intended.
They were, however,cheap
They were, however,cheap
QF Management have destroyed shareholder value.
Simon T you spout fundamental business practices. (Strike one) You, old pal, are a bus driver. No, you're not a business operator. You're a whinging, glorified bus driver.
Want a Porsche? Easy, go to business school and work your way up to CFO or CEO of an ASX 100 Company. Easy.
Otherwise forget about the envy thing.
Keep it real, L.V
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While I strongly disagree with the practice of management receiving bonuses while others lose their jobs or take a pay cut, the theory behind this is that some mangers will leave if things are starting to waver. The bonuses continue in some circumstances to "encourage" those that have the option of pi**ing off to greener pastures, to stay. The last thing you want during a battle is the officers deserting. (sometimes the end result is the same either way)
Once again I would not by any means condone this sort of behaviour but I have witnessed this before in another industry and this was the explanation given when the cheques were handed out.
Once again I would not by any means condone this sort of behaviour but I have witnessed this before in another industry and this was the explanation given when the cheques were handed out.
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The Ball not the man Lucius
So far all you have done is make assertions and spit vitriole.
Firstly I am not a qantas employee.
Secondly I have a B.Comm.LLB(Hons)from UNSW.
Of course AN management were crying poor.AN ownership were depriving them of the necessary investment funds to for them to remain competitive.
As for the rest of your diatribe you are obviously a lay person.
Your initials wouldnt be JB (Il Duce)by any chance? 
Further I dont believe that Dixon or Il Duce have tertiary qualifications that are conducive to running an airline.
More Lucius Vitriole to come!!
Firstly I am not a qantas employee.
Secondly I have a B.Comm.LLB(Hons)from UNSW.
Of course AN management were crying poor.AN ownership were depriving them of the necessary investment funds to for them to remain competitive.
As for the rest of your diatribe you are obviously a lay person.
Your initials wouldnt be JB (Il Duce)by any chance?
Further I dont believe that Dixon or Il Duce have tertiary qualifications that are conducive to running an airline.
More Lucius Vitriole to come!!
Lucius
You too have an opinion. Congratulations; everyone does.
But in all this talk of competition, fuel prices, reductions, staff cuts, economies, efficiencies etc which mostly affect long-serving, reliable, conscientious, capable, professional people, no one is talking about the down-side for QF management... There is none!
Their initiatives boost their bonuses without the slightest hint of team ethic (one in, all in) which a successful business should enjoy and in fact needs if it is to be its best (or would you argue that too?). That is why nearly all the recent pronouncements lack credibility in the eyes of many (even most?) QF employees.
And do I detect a note of that other current executive QF management trait in your comment "You, old pal, are a bus driver"; arrogance? So it's poor form for QFinsider to express a business opinion, but you could command a heavy jet from "A" to "B", planning for Alternate "C" at night in foul weather, with an engine failure, high terrain, poor ATC and dubious navigation aids? Do you know what an ATPL is? Most consider it a degree-level course when all the experience and practical elements are weighed in. Or perhaps you could enlighten all here about command obligations enunciated in CAOs, CARs, JARs and FAA Regulations?
Some, "old pal", choose Harvard while others choose something else and you had me until your attempted sledge indicated that even you need to "forget about the envy thing".
ps. where is it written that only business grads cum "CFO or CEO of an ASX 100 Company" are allowed to have Porsches?
But in all this talk of competition, fuel prices, reductions, staff cuts, economies, efficiencies etc which mostly affect long-serving, reliable, conscientious, capable, professional people, no one is talking about the down-side for QF management... There is none!
Their initiatives boost their bonuses without the slightest hint of team ethic (one in, all in) which a successful business should enjoy and in fact needs if it is to be its best (or would you argue that too?). That is why nearly all the recent pronouncements lack credibility in the eyes of many (even most?) QF employees.
And do I detect a note of that other current executive QF management trait in your comment "You, old pal, are a bus driver"; arrogance? So it's poor form for QFinsider to express a business opinion, but you could command a heavy jet from "A" to "B", planning for Alternate "C" at night in foul weather, with an engine failure, high terrain, poor ATC and dubious navigation aids? Do you know what an ATPL is? Most consider it a degree-level course when all the experience and practical elements are weighed in. Or perhaps you could enlighten all here about command obligations enunciated in CAOs, CARs, JARs and FAA Regulations?
Some, "old pal", choose Harvard while others choose something else and you had me until your attempted sledge indicated that even you need to "forget about the envy thing".
ps. where is it written that only business grads cum "CFO or CEO of an ASX 100 Company" are allowed to have Porsches?
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Simon T, well said.
Geoff Dixon is a good time manager. He is certainly street-wise but whining and government hounding is not going to save him.
His true capability was shown in melbourne this week and widely report in the media today. Classics like "we will make a submission to the federal government over Emirates' plans".
Business is tough. Level playing fields are dreams of a bygone era.
Get real Geoffrey old man, you have lost the plot. Shares below $3, the fair dinkum analysts will soon be calling for your head.
Geoff Dixon is a good time manager. He is certainly street-wise but whining and government hounding is not going to save him.
His true capability was shown in melbourne this week and widely report in the media today. Classics like "we will make a submission to the federal government over Emirates' plans".
Business is tough. Level playing fields are dreams of a bygone era.
Get real Geoffrey old man, you have lost the plot. Shares below $3, the fair dinkum analysts will soon be calling for your head.
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Dear Simon T,
I am humbly impressed by your qualifications.
I don't believe I offer vitriole..just offering realistic opinions.
(Strike two) You wouldn't have any idea what my quals are just as I have no (true) idea of yours.
I just offer what I see are valid points.
Yes, you're right..neither knows anything about running an airline. So far they've just been lucky, right?
It doesn't matter that Ansett management did not make the tough decisions does it..they were always going to fail because of Air New Zealand? What twaddle!
Personal attacks..lack of coherent argument..where have I heard that before?
Jetsbest, yep you're right, no downside for management.
(apart from telling 1000 employees that they no longer have a job) and that's easy, right?
Old pal, you, QF insider and any fool can express an opinion here but I also reserve the right to call that opinion less than well based. Yes, I know what an ATPL is but I would conversely suggest that many pilots do not have a working grasp of the true state of the airline industry. What they have is a wish-list of half truths and bar talk which is not based on any fact.
Agreed. A degree in Aviation is not a degree in Aviation Management or Business.
My comment on Porsches is in reply to our illustrious self-proclaimed commercial lawyer Simon T who insinuated it is a sin to order one if you are an executive.
Lagrange, thanks for the information. I would never have known that business is tough.
Keep the name calling out of it, LV.
Woomera (Eastern States)
I am humbly impressed by your qualifications.
I don't believe I offer vitriole..just offering realistic opinions.
As for the rest of your diatribe you are obviously a lay person.
I just offer what I see are valid points.
Further I dont believe that Dixon or Il Duce have tertiary qualifications that are conducive to running an airline.
It doesn't matter that Ansett management did not make the tough decisions does it..they were always going to fail because of Air New Zealand? What twaddle!
Personal attacks..lack of coherent argument..where have I heard that before?
Jetsbest, yep you're right, no downside for management.
(apart from telling 1000 employees that they no longer have a job) and that's easy, right?
So it's poor form for QFinsider to express a business opinion, but you could command a heavy jet from "A" to "B", planning for Alternate "C" at night in foul weather, with an engine failure, high terrain, poor ATC and dubious navigation aids? Do you know what an ATPL is?
Most consider it a degree-level course when all the experience and practical elements are weighed in.
My comment on Porsches is in reply to our illustrious self-proclaimed commercial lawyer Simon T who insinuated it is a sin to order one if you are an executive.
Lagrange, thanks for the information. I would never have known that business is tough.
Keep the name calling out of it, LV.
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I would imagine share holder value is reflected in the share price.
Have a look at how the QAN share price has compared against the All Ords over the last two years:
http://au.finance.yahoo.com/q/bc?s=Q...&q=l&c=%5EAORD
All Ords up 40%, QAN down 10%. If that's not destroying share holder value then what is?
Have a look at how the QAN share price has compared against the All Ords over the last two years:
http://au.finance.yahoo.com/q/bc?s=Q...&q=l&c=%5EAORD
All Ords up 40%, QAN down 10%. If that's not destroying share holder value then what is?
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Originally Posted by QFinsider
yeah back to 1985 and school....
Well considering my knowedge of the A330 I think i can comment the train smash keeps on going...Ask around the A330 hasn't been a spectacular sucess...
Well considering my knowedge of the A330 I think i can comment the train smash keeps on going...Ask around the A330 hasn't been a spectacular sucess...
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Come on Lucius......
Go for the trifecta!
Where you are, who you are and where you came from is really not important. The only thing you have show is a complete ignorance of operational history, operational management and real world issues.
Your anal cranial interface is truly indicative of those who populate several levels of Coward St.
There is no doubt that the 330 is a fine machine as many Asian carriers are making a mint out of them however it was managements inept ability and introduction policies that made them a lemon.
332’s with long range and light weight floor beams so you cant put the current heavy weight premium class seats in.
333’s sent to India that require a fuel stop west bound to make it, and the only reason that works is because there is no competition on the route for direct flights.
Cityflyer turnarounds without using two aerobridges…WTF!
Tell me how you are meant to decrease the turnaround time with increased passenger numbers when there are less handling staff on the ground?
Like I said, great aircraft poorly introduced by BAD MANAGEMENT PRACTICE!
Do they listen. No
Will they change. No
Lead by example. No
Shareholder value. No
Can JQ crew them. No
These are just the identifiable issues on one fleet! All of these were clearly seen by some before introduction but the powers that be seemed to be too busy checking the specifications of Porsche’s not Airbus.
BTW I had my 993 before my 30th and no I don’t work for QF!
Where you are, who you are and where you came from is really not important. The only thing you have show is a complete ignorance of operational history, operational management and real world issues.
Your anal cranial interface is truly indicative of those who populate several levels of Coward St.
There is no doubt that the 330 is a fine machine as many Asian carriers are making a mint out of them however it was managements inept ability and introduction policies that made them a lemon.
332’s with long range and light weight floor beams so you cant put the current heavy weight premium class seats in.
333’s sent to India that require a fuel stop west bound to make it, and the only reason that works is because there is no competition on the route for direct flights.
Cityflyer turnarounds without using two aerobridges…WTF!
Tell me how you are meant to decrease the turnaround time with increased passenger numbers when there are less handling staff on the ground?
Like I said, great aircraft poorly introduced by BAD MANAGEMENT PRACTICE!
Do they listen. No
Will they change. No
Lead by example. No
Shareholder value. No
Can JQ crew them. No
These are just the identifiable issues on one fleet! All of these were clearly seen by some before introduction but the powers that be seemed to be too busy checking the specifications of Porsche’s not Airbus.
BTW I had my 993 before my 30th and no I don’t work for QF!
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404 Titan,
I think some of the posters here need to have a talk to some BA staff to get a better idea how they increased their profits. To a very large extent it was through staff redundancies that has inflicted huge pain on the BA workforce and their families. Sound familiar?
The main R & N forum has a few BA skeletons to bear, after all.
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IHD,
you forgot to mention the f@#k up with the galleys.
QF in it's "wisdom" elected to hobble what is, after all, a long range aircraft by only giving it enough galley space for ONE meal service.
This was done against the advise of Airbus and every operational department of Qantas.
The bean counters OBVIOUSLY knew better.
Airbus galley bulkheads are integral to the airframe so moving them after manufacture [as can be done with the Boeing product] wasn't an option.
The refit to the galleys cost something in the order of AUD $100 Million.
Wasn't GOD himself proclaiming to one of our pilots how excited he was at Qantas getting delivery of the LONG RANGE 333 ??
Rumour has it that he didn't even know that the 332 was the long range variant........
you forgot to mention the f@#k up with the galleys.
QF in it's "wisdom" elected to hobble what is, after all, a long range aircraft by only giving it enough galley space for ONE meal service.
This was done against the advise of Airbus and every operational department of Qantas.
The bean counters OBVIOUSLY knew better.
Airbus galley bulkheads are integral to the airframe so moving them after manufacture [as can be done with the Boeing product] wasn't an option.
The refit to the galleys cost something in the order of AUD $100 Million.
Wasn't GOD himself proclaiming to one of our pilots how excited he was at Qantas getting delivery of the LONG RANGE 333 ??
Rumour has it that he didn't even know that the 332 was the long range variant........