Qantas and Its Appalling Brand Management
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Whatever 6719,
The Qantas (executives) goal is to bypass the unions, offshore the business and line their own pockets with millions and retire to Rio ( or San Fran).
The Orangestar/Newstar scenario allows this to happen.
You are right the public and the government won't want to allow this to happen.
However, if Qantas mainline is made to look like such a basket case, the Government would be put in a position to save it, which will probably mean lifting foreign ownership as the Government will not financially save Qantas. The Government will however be open to suggestions with the quashing of the QF sales act being the first. Saving an Icon will be used as an excuse to lift these restrictions.
So who buys it? Well you can take it from there..................
The Qantas (executives) goal is to bypass the unions, offshore the business and line their own pockets with millions and retire to Rio ( or San Fran).
The Orangestar/Newstar scenario allows this to happen.
You are right the public and the government won't want to allow this to happen.
However, if Qantas mainline is made to look like such a basket case, the Government would be put in a position to save it, which will probably mean lifting foreign ownership as the Government will not financially save Qantas. The Government will however be open to suggestions with the quashing of the QF sales act being the first. Saving an Icon will be used as an excuse to lift these restrictions.
So who buys it? Well you can take it from there..................
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Right out the GFC TBTF playbook Stalin.
We just need a housing crash and nasty recession to set the final scene for failure...
We just need a housing crash and nasty recession to set the final scene for failure...
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When your main competitor is all over the media spruiking new livery, new aircraft, new cabin fitout, new uniforms, how does QF repond? They send the CEO and Head of Corporate Relations out into the media to attack their own pilots and engineers.
UNBELIEVABLE!!!
UNBELIEVABLE!!!
Joyce worked at Aer Lingus, the flag carrier of Ireland, until he left in 1996 to join the now-defunct Ansett Australia.
Mr Strambi has more than 30 years' experience as an airline executive in Europe and Australia, where he previously worked with both Mr Dixon and Mr Joyce at Ansett Airlines.
Ms. Grant served as the Senior Vice President Customer Service at Ansett/Air New Zealand Group.
The winning team.
Mr Strambi has more than 30 years' experience as an airline executive in Europe and Australia, where he previously worked with both Mr Dixon and Mr Joyce at Ansett Airlines.
Ms. Grant served as the Senior Vice President Customer Service at Ansett/Air New Zealand Group.
The winning team.
A good start would be to put the international style (millenium?) business class seats back in the 767s for domestic use. Also get all the aircraft into the new colour scheme, some of the paint jobs at the moment are just embarrassing.
China .. 
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And EI was a basket case.
Joyce worked at Aer Lingus, the flag carrier of Ireland
As I see it, AJ hasn't learned much other than Q seems to be traveling on the same track as EI under his leadership.
Another interesting comparison from that time was the BA/Go low cost debacle around 2000, another fine mess rectified by Rod Eddington.
After returning a profit within 2 years, the incoming BA chairman Rod Eddington decided that Go had become a liability for BA, since it was cannibalising the airline's core business. It was clear to him that BA's priority had to be in restructuring its own full-service operations. In November 2000, British Airways said that Go “simply does not fit in with our full-service strategy” and that it would sell Go, valuing it at £100 million. In March 2001, British Airways gave private equity firm 3i negotiating rights to buy Go and on June 14th 2001 the deal was sealed. 3i owned 43%, with Go’s Management team, the City and Go people owning the rest; Barbara Cassani said, “Our people deserve the credit for Go’s success and that is why I want them to become co-owners of the airline.” On 16 May 2002, easyJet made an announcement that it was to buy Go for £374 million to expand its own operations. By December 2002, easyJet and Go operated under one Air Operators Certificate (AOC) and in April 2003 the airlines operated as one, fully under the easyJet brand. In November 2003, Barbara Cassani published a book titled - Go, An Airline Adventure.
I think GD got the "private equity" idea from what was happening in the UK, thank god Qs sharholders saw through it, imagine the mess Q would have been in today...
The Q board simply have picked the wrong style of CEO for this market, other words, I believe you can not apply this European model in Australia hence the problems we now face in Q mainline, the blind leading the blind at the top of Q management..
Freakonomics!
AJ recently stated that Jetstar is worth $3.5b, Frequent Flyer worth $2b. Freight worth $1b. Market Cap of group is $5.7b.
So that makes Qantas worth negative $800million.
Well AJ, have I got a deal for you!
If you pay me $800 million, I will take Qantas off your hands and run it myself (you can keep the management). That will make your books look good. You could even do a management buyout of the rest.
But be warned, if you do so, Jetstar might not be worth so much when it has to pay its own bills and compete with my re-launched Qantas expanded network. Qantas frequent flyer might take a dive without the Qantas part; and I will also charge you to carry freight on my aeroplanes, so your freight business might not be worth all that much either.
Anyway, good luck flogging the rest of the group to yourselves!
So that makes Qantas worth negative $800million.
Well AJ, have I got a deal for you!
If you pay me $800 million, I will take Qantas off your hands and run it myself (you can keep the management). That will make your books look good. You could even do a management buyout of the rest.
But be warned, if you do so, Jetstar might not be worth so much when it has to pay its own bills and compete with my re-launched Qantas expanded network. Qantas frequent flyer might take a dive without the Qantas part; and I will also charge you to carry freight on my aeroplanes, so your freight business might not be worth all that much either.
Anyway, good luck flogging the rest of the group to yourselves!
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Kiwi's supporting the Wallabies????
Photos: Boeing 737-838 Aircraft Pictures | Airliners.net
Slight thread, drift, but does anyone think its ironic that a NZ registered aircraft operated by a supposed NZ registered company is sporting stickers to support the Wallabies in the rugby WC?
Slight thread, drift, but does anyone think its ironic that a NZ registered aircraft operated by a supposed NZ registered company is sporting stickers to support the Wallabies in the rugby WC?
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It has been discussed on another thread but yes it is just a bit odd to say the least! Identity crisis.
Send it to the senators who sat on the enquiry.
Send it to the senators who sat on the enquiry.
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It was called Project Suzie. A little team from Macquarie aided by Kerry Packer and of course Qantas management were going to private equity the company.
Dixon, Pemberton Strong etc were all involved...
History repeated..
This is industrial warfare now led by Clifford who is going to make Qantas the next area for waterfront like reform that Corrigan did on the docks. Joyce is merely singing the tune. Clifford is an interesting person, nearly tanked Rio Tinto due his asset buying splurge. Of course he parachuted out 18 months early and left it to someone else..
Dixon, Pemberton Strong etc were all involved...
History repeated..
This is industrial warfare now led by Clifford who is going to make Qantas the next area for waterfront like reform that Corrigan did on the docks. Joyce is merely singing the tune. Clifford is an interesting person, nearly tanked Rio Tinto due his asset buying splurge. Of course he parachuted out 18 months early and left it to someone else..
The current toxic environment and management of the brand will not change in the near future. The board and executive don't have the humility to admit how they have been wrong. Unlike a few years ago the next 12-15 months will see Qantas under attack from both sides, leisure and high yield.
Jetstar will be under pressure both from a weak leisure travel sector and Tiger, while Qantas domestic will be dealing with an invigorated Virgin product. This will test AJ's ability, he has never really faced any competition in the domestic arena before, and its against his money cow, Qantas domestic.
Virgin has brought the fight to parts of Qantas that JB knows domestically needs a lot of money spent on it, the cabin, the staff and the aircraft. The new Qantas A330's and 738's are probably some of the best equipped (in terms of seats and IFE)domestic aircraft around, but its luck of the draw if you get them. The old 734/8 and 767's unfortunately decrease the appeal. Throw in the fact you must use J* on some routes and JB's plan to attack the Qantas brand starts to make even more sense. You fly virgin you know what you are getting to every destination, who knows what you get when you buy a Qantas ticket?
What do you do AJ? This isn't a threat you can use J* to counter, even with a domestic starclass. Interesting times. This might actually turn out to be the best thing for Qantas domestic since Dixon bought Impulse......then again probably not.
Jetstar will be under pressure both from a weak leisure travel sector and Tiger, while Qantas domestic will be dealing with an invigorated Virgin product. This will test AJ's ability, he has never really faced any competition in the domestic arena before, and its against his money cow, Qantas domestic.
Virgin has brought the fight to parts of Qantas that JB knows domestically needs a lot of money spent on it, the cabin, the staff and the aircraft. The new Qantas A330's and 738's are probably some of the best equipped (in terms of seats and IFE)domestic aircraft around, but its luck of the draw if you get them. The old 734/8 and 767's unfortunately decrease the appeal. Throw in the fact you must use J* on some routes and JB's plan to attack the Qantas brand starts to make even more sense. You fly virgin you know what you are getting to every destination, who knows what you get when you buy a Qantas ticket?
What do you do AJ? This isn't a threat you can use J* to counter, even with a domestic starclass. Interesting times. This might actually turn out to be the best thing for Qantas domestic since Dixon bought Impulse......then again probably not.
