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Qantas will be dead in 6 months

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Qantas will be dead in 6 months

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Old 20th Apr 2009, 02:28
  #81 (permalink)  
 
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Teresa G, stirring stuff, you post... and quite right too in the Oz Great Unwashed's reaction to a QF selloff.

Except for one small, uncomfortable point. The money men wouldn't sell off (out?) the QF name, just the people working in it. It's been said by smarter people before me... Since '89 proved it could be done, (all too often) with the willing help of some staff, Plan 'A' has always been to progressively reduce QF to an ever smaller core, handing over as much as possible of its so-called 'non-core' operation to people on far reduced pay and working conditions, until one day, (not, I think, 6 months from now), they simply re-brand all those peripheral, non-core functions as QF, and hey presto!, the 'new, leaner, meaner QF' is born.

...and the Great Australian Unwashed will neither notice nor give a damn - unless the change involves higher ticket prices for them.
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Old 20th Apr 2009, 07:31
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Wiley...
Spot on
The end game has always been the scenario you paint...
The scary bit is that they don't fully comprehend the limitation of the "model"; they look at it in isolation: as though Qantas is the only airline. Barring brinkmanship it is largely arrogance/ignorance that drives the mentality that you simply transfer all the work and one day bring it back in re-badged...

The problem remains is that the "model" assumes competitor behaviour is static..In a downturn Emirates, Singapore et al will throw everything including the kitchen sink at this poorly conceived model and dilute whatever so called yeild remains, all the while providing full service.

The premis that a so called "low cost model" is viable ASSUMES you maintain volume if not yield. In days such as present, this assumption always was and is today even more obiovusly flawed..Not that Kohler noticed..


And one other interesting point I recently realised...
Is that when my own AIPA executive fly J* for their holidays (star class of course as they are Captains) they undermine any credibility the claim when negotiating for more $$
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Old 20th Apr 2009, 13:16
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to all those who think the Australian public will not let Qantas collapse, this interesting comment makes sense.

As an Aussie expat living in Hong Kong for the last 5 years I am delighted and relieved to have access to a choice of excellent Asian airlines which have services that leave on time, arrive on time, are price competitive, have professional and courteous cabin staff and more frequently than not are piloted by Australian pilots which Qantas rejected. By any measure Qantas it is a second rate airline that has cleverly tapped into the patriot in many an Australian who feels proud to fly in a plane with a kangaroo painted on its rear, irrespective of the quality of the experience. Dr Johnson once defined patriotism as the last resort of scoundrels. Qantas have got away with it for years. What would they have done without Peter Allen?
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Old 20th Apr 2009, 13:52
  #84 (permalink)  

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Hmmm...I've always had an issue with "The spirit of Australia"...if it's true, then it serves us right I guess.
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Old 21st Apr 2009, 09:36
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Some more interesting articles about Q's axing fo staff, this one talks about skilled IT staff probably too sacred to bits now as they have to re apply for new positions and justify their skills and if do not have the skills, will have to be shown the door, accordingly, Blackberry was a dismal failure. All that money spent: for nothing! And Telstra lost its contract with Q. These articles give you a perspective of what other work groups in Q is facing, we have been very centric in the company as a whole, the company does not revolve around cabin services only. There are many important departments such as IT. Any large company will fall apart without an efficient IT department, but can still operate for a long time with 2nd rate customer services.


Jobs at risk as Qantas centralises tech management

Mahesh Sharma | April 21, 2009

QANTAS'S technology department will get a further shake-up and may suffer more redundancies as a new operating model is adopted within months.

It has also scrapped its BlackBerry project, which was intended to improve inflight customer service.

It is understood the new structure -- to operate from June -- will integrate all employees across the technology business units into a single resource pool.

Staff will work across a range of technology projects overseen by multiple managers.

The technology revamp comes as the airline prepares to dump Telstra as the supplier of a $750million outsourcing contract as part of a squeeze on suppliers to cut costs.

Sources said the overhaul, which had been in the works since the middle of last year, would make it easier for Qantas to axe staff.

A recent cull of 90 managers by chief executive Alan Joyce claimed chief information officer Jamila Gordon and several other technology executives.

Qantas also flagged 1750 job cuts -- on top of 1500 shed last year -- and forecast that last year's profit before tax of $500 million would be down by as much as 80 per cent this year.

The most recent job losses include 500 management positions and 1250 full-time positions, which will mainly be operational staff based in Australia.

It is understood the technology shake-up was led by Qantas program delivery general manager Mark Eeles -- a former delivery head at Vodafone Australia -- who joined the airline in the middle of last year.

Sources said Mr Eeles and several other technology executives presented the new structure in a "lecture" last month at Qantas's new $10 million customer service centre of excellence in Sydney.

The national carrier has attempted to keep the new operating model under wraps as the information was not delivered over email.

Staff have been asked to list their skills and the new model will cut all previous roles to two work types -- project managers and business analysts.

Managers will oversee teams of about seven people and be responsible for everything from an employee's holidays to their career path.

Insiders said, however, the changes were simply reverting to an IT operating environment that was previously dumped by Qantas.

"This was the model Qantas had previously, before they changed it to the one they have now," a source said. "Now they're going back to what it was before. How does that work?"

Another source said the new structure was designed to "get rid of people that don't fit the new model" and management would have problems co-ordinating staff working across multiple projects.

"In this model the other people assigned to the same project as you could all have different managers and each manager could possibly give you holidays at the same time as everyone else," the source said.

"Your time will be used between projects. You have to verify which deadline is the most important to meet.

"If you go to your manager and tell them you have two deadlines colliding they would have to go to meetings and sort it out, which would mean you still have to decide yourself. Crazy."

A Qantas spokeswoman declined to comment on whether a new technology operating model was being adopted.

"Qantas has recently announced that some parts of the business will be impacted by staff restructuring as part of an overall review of our business segments, this includes the information technology operation," the spokeswoman said.

"Qantas is always monitoring its business practices for maximum efficiency and customer satisfaction."

Mr Joyce said efforts to rein in Qantas IT costs were well advanced.

Asked on ABC's Inside Business program to comment on Qantas technology systems being a "bit of a joke in the industry", Mr Joyce said: "We spend a lot on IT ... we spend around 3.5per cent of our revenue on IT."

Jetstar spent less than 1 per cent of its revenue on IT, probably because it had better systems because they were designed for a start-up carrier, he said.

"We're looking at getting better value for money, investing in the right areas, building up state-of-the-art systems that deliver really good productivity -- process efficiencies that really enhance the quality of the business," Mr Joyce said.

Meanwhile, data transmission problems and occupational health and safety hazards have forced Qantas to suspend the roll-out of BlackBerry devices to staff almost a year after the project kicked off.

It is understood the airline recently put the brakes on the BlackBerry exercise and will review the technology, which could result in the replacement of thousands of BlackBerry devices distributed across the business.

Customer service managers were to use the BlackBerrys to transfer information during airline procedures.

The national carrier is scrutinising all technology contracts and projects in a bid to cut costs and bunker down amid the financial crisis and economic downturn, which has severely hit the global airline industry.

The BlackBerry rollout was driven by former chief information officer Jamila Gordon, who was axed as part of the management cull.

The latest suspension draws the curtains on a project that was troubled from the beginning, according to staff.

Sources said it took up to 45 minutes to send a single document.

"There are 10 to 12 documents to send during each flight and it was almost impossible to send them," staff said.

Qantas encountered another hurdle after the project was approved, when the occupational health and safety department declared the devices were a potential safety hazard because of the amount of typing required on the BlackBerry's small keyboards.

The airline was forced to buy hundreds of additional keyboards that staff could plug in to the BlackBerry and use to type in the required information.

Qantas declined to confirm the project had been suspended.


Airline to cut $750m Telstra desktop deal

Mahesh Sharma | April 21, 2009

QANTAS is planning to cut its seven-year, $750 million Telstra desktop services outsourcing contract.

The contract is among the airline's largest and longest running technology deals as it starts to squeeze suppliers in a bid to slash costs.

It is understood Qantas has selected Japanese outsourcer Fujitsu to replace Telstra from June as its provider of domestic data, voice and desktop services.

The value and scope of the new contract have not been revealed.

The change is part of a cost-cutting push at the national carrier, which is fighting the dual pressures of the financial crisis and the global airline industry downturn. Qantas has forecasted full-year profit before tax of $500 million for 2008-09.

Instead, the airline will deliver a profit before tax of $100 million to $200 million.

Qantas chief executive Alan Joyce also announced widespread restructuring of the airline to cope with the downturn, with plans to axe up to 1750 more jobs, ground 10 planes and delay delivery of the next generation of jets.

Last month Qantas chief information officer Jamila Gordon and a number of key technology executives were made redundant as Mr Joyce culled 90 management staff from the airline. Ms Gordon left Qantas about two weeks ago and her responsibilities have been absorbed by corporate services and technology executive manager David Hall, previously finance chief at Jetstar.

Mr Joyce is scrutinising the long list of Qantas technology and outsourcing deals, of which the massive Telstra contract was the No 1 priority.

It is also looking at a 10-year, $650 million data centre outsourcing deal signed with IBM in 2004. Qantas moves to dump Telstra were flagged by The Australian last week but the airline has not revealed details of Fujitsu's role.

It is unclear whether Qantas will be penalised for ending the Telstra contract prematurely. It was due to expire in two years.

A Qantas spokeswoman said the airline planned on making an announcement about the Telstra deal in the middle of this year.

Qantas had previously said it would make an announcement on "the result of our desktop request for proposal process prior to the half financial year", and it was still expecting to do that, she said.

Fujitsu's expected appointment ends a relationship that has troubled Qantas staff for years and is understood to have once resulted in the airline's engineering business buying keyboards from Harvey Norman because Telstra's rates were too expensive. It is believed that in 2007 Qantas Engineering wanted to purchase several hundred keyboards, but under the Telstra contract they would have cost $180 a month.

After months of to-ing and fro-ing Qantas Technology approved a business case to purchase the keyboards from Harvey Norman because they could be categorised as a commodity.

It was a simple common-sense use of funds, an informed source said.

Qantas market testing of the Telstra contract late last year showed the telco's rates were several times higher than competitors were charging.


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Old 21st Apr 2009, 09:45
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Quote-

"The airline was forced to buy hundreds of additional keyboards [for the blackberry] that staff could plug in to the BlackBerry and use to type in the required information."

_____________

Bull****. Onboard CSMs were given a list of keyboards that they could buy at their own expense.
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Old 21st Apr 2009, 11:54
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The talk of rebranding or morphing Jetstar into Qantas imho is very difficult to do, based on which AOC the new Qantas would be operated under. It for the same reason that Qantaslink is called Qantaslink and not Qantas. Different AOC, different name. The trade practices act has rules that forbid false and misleading advertising. Its only my opinion but I believe that a Jetstar operated aircraft painted and marketed as Qantas Airways is misleading and a false representation. Jetconnect gets away with it because its operated out of NZ and is therefore not under the jurisdiction of our ACCC. If Jetstar were rebadged as Qantas and operated under the Qantas AOC like the original Australian Airlines was, then the industrial landscape would be suicide for the board. Perhaps I am wrong and wishful thinking is clouding my views. Any lawyers like to comment?
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Old 21st Apr 2009, 12:05
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Fujitsu's expected appointment ends a relationship that has troubled Qantas staff for years and is understood to have once resulted in the airline's engineering business buying keyboards from Harvey Norman because Telstra's rates were too expensive. It is believed that in 2007 Qantas Engineering wanted to purchase several hundred keyboards, but under the Telstra contract they would have cost $180 a month.
I have heard several other obsecene figure in relation to Telstra supplied equipment. The sooner Telstra is given the boot, the better.
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Old 21st Apr 2009, 12:13
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Schlong,

Not a bad thought, but the reason Qantas Link operate under that banner is for branding purposes, not anything to do with the AOC.

Impulse have set the precedent in this regard; they operated under the Qantas Link banner for some time, whilst still operating under the Impulse AOC.

I don't think there'd be anything to stop JQ crewed aircraft being operated as Qantas flights in QF colors. That doesn't mean that I think it is a certainty, but I've always thought it was a very tempting card to have up the Executives' collective sleeve.
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Old 21st Apr 2009, 12:49
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I have heard several other obsecene figure in relation to Telstra supplied equipment. The sooner Telstra is given the boot, the better.
One would imagine Telstra's corporate traveling needs for their staff may have similar backlash given Qantas fares aren't exactly best values compared to competitors, nor is cabin services 2nd to none. Imagine too Telstra cancel their travelling needs with Qantas.

We do know that the federal Government have now started installing a multi million dollar state of the art video conferencing system just so they do not have to rely on Qantas to jet their staff around at 15 million dollars a year of tax payers money. That's more business to be lost from Canberra for corporate travelling accounts, which by the way , is a huge account to be lost for Qantas.Premium class, anyone?
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Old 21st Apr 2009, 15:18
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Blackberry's to improve customer service; IT facilities to improve customer service; telecommunications services to improve customer service; yada, yada, yada.

If the aircraft simply took off ON TIME and landed approximately ON TIME and made connecting flights ON TIME, customer service would improve dramatically, regardless of perceived improvements to IT. Cabin service would improve exponentially because passengers wouldn't be taking their frustrations out on the CC. Qantas' IT fiddling wasn't designed to improve customer service. CC already had their hands full. Instead, it was designed to improve the ability of supervisors to put their noses in on each flight. It's no wonder the IT boss got sacked. The project scopes were never established properly to begin with. And after that, she was just throwing money away.

One of the worst things that Dixon did was to slash engineering. The aircraft serviceability plummetted and customer service went in the crapper. He was living a dream to impose cutbacks on what he perceived to be a bloated workforce while rewarding his inner circle of confidantes.

Customers will put up with a lot of cutbacks or rare inconveniences, but regular episodes involving an inordinate amount of time sitting in an airport terminal waiting for a serviceable aircraft, or hassling a desk clerk to rearrange connecting flights, is not one of them.

550 managers? Why stop there?

Last edited by Lodown; 21st Apr 2009 at 15:36.
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Old 21st Apr 2009, 21:07
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Qantaslink is just a trading name the AOC's are Eastern Australian Airlines, Sunstate Airlines and National Jet Syetems
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Old 21st Apr 2009, 21:33
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With regards to Qantas dumping Telstra IT (a good move) which charged QE $15,000 approx for each networked P.C. station, $150 for a replacement mouse etc.
Just wondering if anyone from the old "QANTEC" IT Dept care to share their thoughts on OUTSOURCING (outside of Qantas). Who did it and why. Obviously it was a bad idea!
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Old 21st Apr 2009, 21:53
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Just reflecting on last Sundays interview with Allan Joyce on ABC ...He stated that First and Business in Mainline was down by roughly a "Turd "..didnt realize that they have become a measure of viable performance ..just like RSKs..etc Hmmmm must keep up with modern accounting practices
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Old 21st Apr 2009, 21:54
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According to The Hindu Business Line, Qantas IT had been outsouced to Indians since 2006 also oddly that firm had been caught out cooking their books, and I think Qantas out to save a few pennies, still do not mind the criminal proceedings against this Indian firm.

The Hindu Business Line : $142-m Qantas Airways deal for TCS, Satyam
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Old 22nd Apr 2009, 00:48
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We do know that the federal Government have now started installing a multi million dollar state of the art video conferencing system just so they do not have to rely on Qantas to jet their staff around at 15 million dollars a year of tax payers money. That's more business to be lost from Canberra for corporate travelling accounts, which by the way , is a huge account to be lost for Qantas.Premium class, anyone?

Yeah right! Can you imagine the pollies or bureaucrats giving up their Qantas Club memberships, premium travel perks, travel allowances, or "study" tours. I'm sure they'll fully embrace video conferencing! Not!
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Old 22nd Apr 2009, 01:54
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Thanks for your replies. Looks like my theory is cactus!
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Old 22nd Apr 2009, 05:50
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Best news I've heard all day about Telstra getting the flick. Over 1 grand for a wireless mouse because it's not 'standard' equipment. What a joke! Oh but that includes 'servicing' over the life of the mouse Perhaps once they're out of the picture QF's books might start to look a bit more healthy. Who on earth put their signature on that contract!
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Old 22nd Apr 2009, 06:15
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Makes you wonder

Who did such a bad deal?
Good thing she got the flick
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Old 22nd Apr 2009, 07:43
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Got a job with telstra I heard. Then she had to leave.
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