Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

1,750 jobs to go at Qantas

Old 14th Apr 2009, 02:01
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More information from their 'Market Update' released today:

Global economic crisis impacting aviation
• Global economic growth forecasts downgraded for 2009
– March 09 - IMF downgraded 2009 global activity by 1 – 1.5%
• An unprecedented drop in demand particularly for premium travel
• Aggressive airfare pricing and mixed capacity deployment
• Fuel and foreign exchange remain volatile
• Many major carriers have announced losses for recent reporting periods
• Significant revenue volatility exists in the industry

Market conditions have deteriorated for Qantas

• Lower demand particularly in the premium classes
• Extensive sales and heavy discounting by carriers, in some cases up to 50%
• Some competitor airlines reducing capacity, however overall international market capacity continues to expand (~8% March 2009 vly)
• Revenue has been impacted with Qantas International and Freight most affected, Qantas Domestic to a lesser extent
• Jetstar, QantasLink and Frequent Flyer continue to perform well and are in
line with expectations

Network response

• Targeting 65% domestic market share and aiming to maintain presence on key international routes
• Given the weaker revenue environment Qantas is reducing capacity
• Grounding up to 10 additional aircraft (747-400s, 767-300s)
– Capacity predominantly removed from Qantas Australian Domestic, US, UK and South Africa markets
– Reducing frequency, however no complete withdrawal from key markets
• Evaluating aircraft configurations to manage through the cycle

Aircraft deferrals
Qantas has successfully negotiated significant aircraft deferrals
• 4 x Airbus A380s deferred for 10 – 12 months
• 12 x Boeing 737-800s deferred for an average of 14 months
• Ongoing negotiations regarding the delivery of 15 x Boeing 787-8s
• 2008/09 capital expenditure revised down by $200 million to $1.8 billion
• 2009/10 capital expenditure revised down by $800 million to $1.3 billion

Full year outlook

• Volatile market conditions make it difficult to forecast
• Qantas is revising its full year PBT outlook downwards from around $500 million to $100 – $200 million subject to
- no further changes in market conditions and fuel prices
- no further changes to PBT resulting from accounting for hedging exposures in future financial years under IFRS139

Last edited by Teal; 14th Apr 2009 at 06:02.
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Old 14th Apr 2009, 03:49
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The flogged out aeroplanes, under catered flights, delays caused by pig headed arrogance and determination to crush peoples belief in a fair days pay in a good airline, giving customers no choice and sheer contempt that upper level management has shown for loyal customers and staff is bearing fruit for all qantas shareholders to see.
Good luck AJ. I hope you can turn it around. Not looking good.
Well Said Wingnut69. Spot On.

Now the only option that will work is to offer better bang for buck, the problem is that they only thing that they know is how to lower it to try to save pennies.

Dear Qantas, there's nothing wrong with making your service so good that your reputation is the envy of other airlines. When this happens you can then raise your yield. Lesson Ended.
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Old 14th Apr 2009, 04:01
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Oops, this looks like it could be worse than it first looked.

Crikey - Job slasher Qantas could be $338 million in the red - Job slasher Qantas could be $338 million in the red
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Old 14th Apr 2009, 04:01
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I have heard a few times in the past 8 years that the wrong airline went down, then people could tell you to get over it "rim".

The fact is and its in history who went down, so I have the right to say that anytime I like as its the truth.

I feel "the leprachaun" manufactured all this and is using it to do a cull like the kangaroos around CB and put his little stamp on the "Q".

Don't suppose trying Voluntary Reduncecies, or natural attrition, or a paycut for all to keep jobs, nuh I don't think so, because this is whats wanted.

On radio its because the sare price went down because of forecast profit downgrade, from what 500 zillion to 200, no kiding, haven't anyone heard of a world recession.

I'm a share holder in companies, I'm not looking for endless bigger returns year after year, its not possible, sometimes we need to take a haircut and wait for the good times, and they are ahead as sure as day follows night the good days are coming.

I would like to see all execs take a huge haircut and their pay linked to excellent management not slash and burn philosophies.
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Old 14th Apr 2009, 04:30
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There is a name for this - it's called "The Chickens Coming Home To Roost".

This is where narcissistic management - contempt for customer and staff alike eventually lead ANY business.

QF will suffer disproportionately because it has been trading on Government mandated capacity constraints to generate international business, and now those of us in the "Any airline but Qantas" brigade can no longer be so easily forced to use that airline.
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Old 14th Apr 2009, 04:43
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I'll second that comment Sunfish.
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Old 14th Apr 2009, 04:45
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It may be time to ask Dixon to give back some of the bonuses he was paid
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Old 14th Apr 2009, 04:53
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Also agreed. If there were another carrier thats not a low cost carrier running domestic QF wouldnt see me for dust.
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Old 14th Apr 2009, 05:20
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According to the media both pilots and long haul flight attendants will be affected Qantas to slash up to 1750 jobs amid $400m profit slump | Herald Sun.
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Old 14th Apr 2009, 05:28
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pilots and long haul flight attendants will be affected
And if AJ is really serious about reducing expenditure, he will insist that with any reduction in numbers the concept of last on/first off (i.e., seniority) does not apply. Unfortunately, he may not have the luxury of enforcing this philosophy.
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Old 14th Apr 2009, 05:35
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Please take note AJ - here in QF engineering, we have fewer staff than we did 3 years ago, yet we have more managers!!!!

From where we are, the management tree is virtually endless........

And while you are at it, get rid of those HR parasites......
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Old 14th Apr 2009, 05:39
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The pilot's award is last on first off. So I wonder what happens if the cadets under LOA 161 will still keep a seniority number?
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Old 14th Apr 2009, 05:40
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500 Managers to go -Music to my ears

If they aren't needed today, why were they there yesterday?
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Old 14th Apr 2009, 06:01
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Target Selection

For years the workshop floor has borne the brunt of cost cutting while Management created executive wealth.
Now its their turn.Lets hope they put a bit aside for this rainy day.
This event may prove a boon to morale and put Qantas back on track to being the inclusive cooperative family it once was.
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Old 14th Apr 2009, 06:09
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The rollover EBA simply put in re-employment-after-redundancy provisions that aren't there at the moment.
Pilot redundancies are a last resort for obvious reasons. When the downturn reverses, the training costs to get back up to speed are huge. There is a lot of unused leave, LSL, LSL at half pay and LWOP to go through before redundancy happens.
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Old 14th Apr 2009, 06:18
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When the downturn reverses, the training costs to get back up to speed are huge. There is a lot of unused leave, LSL, LSL at half pay and LWOP
But aren't training costs incurred when someone returns from LSL, LWOP etc etc? Surely it's cheaper to retrench someone and re-hire 12 months later than allow them LWOP or LSL? The subsequent training costs would surely be the same - retrenched or sent on long leave. Does one conclude that pilots are best flying aeroplanes? And that they do it would BOTH hands!
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Old 14th Apr 2009, 06:23
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Surely it's cheaper to retrench someone and re-hire 12 months later than allow them LWOP or LSL
Redundancy off the bottom would cause a huge amount of retraining in itself with demotions. Not to mention redundancy payments.
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Old 14th Apr 2009, 06:47
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Well Captain, that's exactly why Qantas should be able to choose who to retrench. Reduction across all categories/ranks of pilots, or other groups of employees who believe in LIFO should minimise any retraining costs.
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Old 14th Apr 2009, 07:08
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Well Captain, that's exactly why Qantas should be able to choose who to retrench. Reduction across all categories/ranks of pilots, or other groups of employees who believe in LIFO should minimise any retraining costs.
Today 16:23
Too Bad, its not possible its called an EBA, and the provisions for any retrenchments are ruled out in any EBA in any industry.And that's why they rule supreme over individual contracts in times like these. Besides if any employer can pick and choose who to retrench its just open to corruption and getting rid of people they don't like! And thats why poor little Johnny got sent packing to the invisible land in the last election!
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Old 14th Apr 2009, 07:11
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NEW Qantas chief executive Alan Joyce's dramatic restructure of the national airline _ including the loss of up to 1750 jobs, the grounding of 10 planes and a dramatic plunge into the red _ has won the support of stock market investors.



Less than five months after taking over, Mr Joyce earlier today revealed the company would miss its full-year profit forecast by an extraordinary 60-80 per cent as it battled the economic downturn.

Its target of a $500 million profit before tax for 2008-09 has been slashed to between $100 million and $200 million, with a loss expected in the second half of the financial year.

The loss will represent only the second time Qantas has fallen into the red since listing on the stock market in 1995. It last reported a loss _ a modest $10.8 million before tax _ in the second half of 2002-03 after the SARS outbreak caused a slump in air travel in the Asia Pacific region.

The news initially sent Qantas shares crashing as much as 22c, more than 10 per cent, to $1.74. But by the close of trading, the stock had recovered to finish 4c higher at $2 on heavy turnover.

Analysts said Mr Joyce's plans were a pragmatic response the most challenging aviation environment on record. Many had already discounted the airline's chances of reporting a $500 million profit for the full year.

Mr Joyce said Australian-based staff, particularly those involved in international travel, would bear the brunt of the job cuts.

While Mr Joyce's program satisfied investors, ACTU secretary Jeff Lawrence said he wanted to meet with Qantas management as soon as possible to discuss ways to minimise the job losses.

“Qantas has a skilled base that is essential to the Australian industry and that needs to be preserved,” Mr Lawrence said. “Qantas has been frank about its intentions and current position and needs to be open with the unions.”

Mr Lawrence said there would eventually be an upturn in the economy, and Qantas needed to be in a position to take advantage of that by returning to work as many staff members as possible.
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