Merged: Qantas:The Trashing Of A Brand

[noip]

professor .... I'm sure you could paint a more rosy picture, however .....

Have you considered that if our immediate former CEO had had his way, QF would in all probability now be bankrupt and/or re-nationalised (hey, the government is handing out money and a few more billion wouldn't be noticed) ...

Jetstar may well no longer exist and its employees trashed (its aircraft all back with their owners), together with the other QF job losses. Of course all new aircraft orders and anything half valuable would have been sold off as well.

Domestic airfares (at the least) would be considerably more expensive than now.

Some CEO.


Rgds

N

(if you are wondering ..... think APA)

[blackguard]

Professor:This Mess

The international economic meltdown that has seen corporations put their hands out ot governments for salvation......taxpayer dollars.
This Mess has seen the Qantas share price plummet to $1.78.
Dixon was no genius....he just reduced costs and postponed re investment.
This resulted in a clapped out fleet that required enormous maintenance at a time when the E and M employees were negotiating a pay rise.They got what they required and Dixons tenure ended prematurely.
As the title of this thread suggests Dixon effectively trashed the brand.
The Professor...the myopic quasi academic defending the indefensible

[busdriver007]

Professor,

Obviously your suedo-name describes your personality. Self-righteous and from your own admission a fountain of knowledge.

Most Airlines use world's best practice of 2 Captains and 2 First Officers and compared to most first-world airlines QF sit in the middle(around 47%-crew costs USD). Doesn't mean that this will stay given the current climate.

Qantas has been ruled by a arrogant, pig headed attitude that has damaged the brand to who knows what extent (hope it is not terminal). Managements view seems to be the "passengers will come cause we are Qantas". Well that attitude does not work in a competitive world and once you lose passengers to the Emirates, Etihad and Singapores of the world they ain't coming back. Towards the end of Dixon's career he became immune from criticism and like Howard and Mugabe got wound up in self-cogratulation and stayed too long.

The problem the airline has is that it has focussed on the low-cost model that requires high load-factors to break even and as I said expects the passengers just to turn up and pay full fare and sit next to the hero bragging about his cheap ticket that he bought through the Jetstar website.

The issue now is who will survive the rout. Whoever does and comes out the other side will grow but the attitude at QF will have to change.

[Sunfish]

The CEO's job is not to produce short term profits, which is relatively easy to do for quite a few years by raping the company and its customers - which is Dixon's business model.

The CEO's job, as taught to me by Exxon/Mobil is to maximise the value of the company in the long term.

[Captain Marvel]

I'm no accountant, but wonder if QFs aging fleet is a blessing in disguise. They can rapidly reduce capacity in response to declining passenger demand by parking these older aircraft with less shock to the balance sheet or profit statement.

If they parked newly financed or leased aircraft then the cost would likely be significant.

Just a thought that may keep them in the black.

[mrpaxing]

qantas has suffered greatly as a

acknowlegded by some of the curretn excecs. "the brand has been damaged"

[mrpaxing]

qantas has suffered greatly

and the brand has been damaged as acknowlegded by some of the current excecs. there are only a couple of reasons left why customers choose to fly QF. it will take some time to change the image. what i dont get is why the likes of JB,LG and some otheres are still employed? they should have been out the door as soon as AJ took over.

[capt.cynical]

new low

QF share price hit a new low, early this afternoon !!

$1.685

[blackguard]

Qantas Offer

Have just received the Qantas share offer of $1.85.
Think I will pass.

[Tidbinbilla]

Huh! You too

[capt.cynical]

Closed @ $1.675

[struggling]

Not quite!

Those who take up the retail offer will pay the lower of either the institutional price of $1.85, or the average weighted price during the 5 trading days up to and including 13 Mar and will pay no brokerage to boot.

Real shame that using salary sacrifice to make available the marginal tax advantage arising from using pre tax dollars isn't going to be available though.

Reliably informed that setting up the required employee trust has to be resurrected after some clown knocked it over out of spite.

[Bad Hat Harry]

Borrow The Bucks

You could always borrow the money and claim the interest.
Negative gearing just like property

[lowerlobe]

You could always borrow the money and claim the interest

.....What a brilliant idea ..

Borrowing money on the assumption that the market won't fall any further .....

Yep,no one's lost their house with a plan like that.....

You should be a financial advisor........

A good friend of mine who is a Capt with QF once told me that the best advice he could give me was to never take financial advice from a pilot....looks like he was right....

[twiggs]

Originally Posted by lowerlobe

A good friend of mine who is a Capt with QF once told me that the best advice he could give me was to never take financial advice from a pilot....looks like he was right....

As opposed to taking financial advice from flight attendants, hey lobe?

[Bad Hat Harry]

Losses Offsettable

Losses are off settable against tax payable on realized Capital Gains.
Who said anything about betting the house?
Borrow $5K to buy QF shares and sit on them for ten years.
As usual Lobeless you over react before engaging your prefrontal.
Like most geriatrics.
The market is oversold.
Look at the book value compared with the share price.
Opportunities abound.Even with Qantas

[kotoyebe]

Borrow $5K to buy QF shares and sit on them for ten years.

You mean I might have my job for another 10 years? Yipee! I was worried that it would be well and truly over by then, or at least that the future would all be orange....

[lowerlobe]

As opposed to taking financial advice from flight attendants, hey lobe?

Twiggs....hey I heard you had either gone back to work up in the office in the LHR base....or maybe gone on holidays to Palestine?....but still,your posts make as much sense as usual though...
But since you mentioned it....the best thing I've done recently was to take my money out of the super fund it was in as this mess developed and put it in a cash fund where it has actually increased instead of the other way around like most super funds ....and yes twiggs that was because of advice from a financial advisor who is ex QF cabin Crew....I honestly don't know why the people in the office don't have any faith in the crew they hire....but you are consistent....

Losses are off settable against tax payable on realized Capital Gains.

Why would anyone buy shares in an airline let alone borrow money to buy them...yep Bad Hat Harry you should be working on Wall Street amongst the guys that have caused this mess.
Book value....yeah right

[blackguard]

Realized Losses

By converting to cash you have realized your losses and by now interest rates are so low you are making very little on your investments.
Agree with BHH that there are some great opportunities for buying discounted equities now

[kotoyebe]

Agree with BHH that there are some great opportunities for buying discounted equities now

Blackguard, like I said a few years ago on this subject, I've got a great deal for you on my Telstra 2 shares. I'll sell them to you for say...$5 a share. That's heaps cheaper than I paid for them. You're in the mood to buy..go for it!