1,750 jobs to go at Qantas
Thread Starter
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
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 07:02.
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.
Good luck AJ. I hope you can turn it around. Not looking good.
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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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
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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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.
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.
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.
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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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.
pilots and long haul flight attendants will be affected
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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......
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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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.
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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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.
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.
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
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Surely it's cheaper to retrench someone and re-hire 12 months later than allow them LWOP or LSL
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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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
Today 16:23
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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.
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.
