Future of Qantas in jeopardy: Joyce (Merged)
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Hmmm! Would seem that 'change' is on the horizon.
Virgin Australia’s alliances have added urgency to Qantas’ quest to reshape its own struggling international business to reduce its vulnerability as an end-of-the-line carrier. John Borghetti’s alliances are potentially disruptive to transforming the nature of Qantas’ international business via the creation of an extensive Asia Pacific presence.
Source: The heat in Virgin's Asian accord | Stephen Bartholomeusz | Commentary | Business Spectator
Virgin Australia’s alliances have added urgency to Qantas’ quest to reshape its own struggling international business to reduce its vulnerability as an end-of-the-line carrier. John Borghetti’s alliances are potentially disruptive to transforming the nature of Qantas’ international business via the creation of an extensive Asia Pacific presence.
Source: The heat in Virgin's Asian accord | Stephen Bartholomeusz | Commentary | Business Spectator
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You're worth more money Whatty.
And the Speculation gets even better, with some analysts saying there will be a full blown Qantas-MAS tie-up.
As they say in the comic strips, there's Klingons everywhere Captain. Looks to me that the Unions will need to come up up a lot more than protected industrial action.
According to a statement from the Australian Competition and Consumer Commission, Qantas Airways Ltd has won interim regulatory approval for a joint business agreement with American Airlines. The ACCC said today, the airlines would coordinate services on their trans-Tasman and trans-Pacific routes under the proposed deal.
Further, according to a report in the Herald Sun today, Qantas Airways Ltd may cut a deal with China Eastern Airlines, which is headquartered in Shanghai, to set up a link to Asia and remain competitive on international routes.
As they say in the comic strips, there's Klingons everywhere Captain. Looks to me that the Unions will need to come up up a lot more than protected industrial action.
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Agree. Very big changes on the horizon.
Am only aware of one strategy more efficient than the Globalised Network Strategy now being pursued by Qantas and Virgin Australia, and that is the Integrated Airline Strategy being pushed by British Airways, et al.
With bold enough vision, it may still be possible to keep the jobs in Australia, but only if employees can get in on the discussions.
Good luck to all involved.
Am only aware of one strategy more efficient than the Globalised Network Strategy now being pursued by Qantas and Virgin Australia, and that is the Integrated Airline Strategy being pushed by British Airways, et al.
With bold enough vision, it may still be possible to keep the jobs in Australia, but only if employees can get in on the discussions.
Good luck to all involved.
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Obviously, as evidenced by your need to reply personally to Mr Sandilands Alan, the truth really does hurt. Inconvenient as it may be to you.
Too bad all you can offer is excuses and attempt to lay the blame for the current direction of Qantas at everyone else but yourself.
You were clearly the wrong person for the Job and you're entirely out of your depth when in comes to adding long term value to a full service carrier.
Perhaps you should take your 'talents' to IATA sooner rather than later.
Ben, keep up the good work.
Too bad all you can offer is excuses and attempt to lay the blame for the current direction of Qantas at everyone else but yourself.
You were clearly the wrong person for the Job and you're entirely out of your depth when in comes to adding long term value to a full service carrier.
Perhaps you should take your 'talents' to IATA sooner rather than later.
Ben, keep up the good work.
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Sigh. Borghetti was the right choice for CEO. A man who lived and breathed Qantas. A businessman - not a manager - who understood that it is better to grow a business by spending a dollar to make two, rather than save a dollar and stand still.
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These are just a few of the matters you have raised in your recent pieces, many of which you frame as personal criticisms of my leadership and that of the Qantas board
AJ, you slag off your staff and run down your Mainline product in the press at every opportunity. You are so out of touch with your staff, you might as well be running the company from Ireland, it is such that you have no understanding what it is to be Australian.
Miranda Devine saw this a couple of weeks ago...
The real Qantas kamikaze - to be sure to be sure | Daily Telegraph Miranda Devine Blog
Qantas’ current industrial strife is a worry to fans of the national carrier. Why is a newly arrived Irish CEO with an incomprehensible accent attacking the pilots, of all people, and calling them “rogues” and “kamikazes”.
Clearly Alan Joyce, 44, doesn’t understand Australians’ attachment to Qantas.
Clearly Alan Joyce, 44, doesn’t understand Australians’ attachment to Qantas.
The ball's in yours and the boards court re the direction it gets hit. In the public's eye the backhanders served up by you against your Aussie staff probably has a lot to do with why the traveling public are exploring other airline options when choosing their next flight, they are fed up with the continual blame game, it's all the staff's fault, probably a key factor why Q are losing market share. It's not rocket science. Qantas is an Australian icon, it is still an nationalistic issue whether you like it or not.
Last edited by TIMA9X; 9th Jun 2011 at 03:48.
He doesnt want to or cant answer the difficult questions. No investment in the mainline model ie IFEs that work full flat sleepers on the 400s. Why the EBAs have got to PIA stage and his refusal to meet BJ of AIPA one on one (no Oldmeadow consulting present) to try and resolve the issues). The belief of most staff and others that mainline give Jetstar a free kick financially. The wasted money in Jetstar Asia and Pacific and the money that they have lost. And lastly why so many staff are so pissed off with the destruction of the iconic brand and if he cant see that then he is really beyond help. As for Dallas i think you will find that BS likes the idea its just that they are doing it with the wrong aircraft ( another question that AJ fails to answer).
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Right on Dragon.
Seems that no one answers questions anymore. Its just evasive bull s&*%!!
The only thing they wont be able to avoid is the plummeting share price.
That is something they will have no choice but to answer!!
Seems that no one answers questions anymore. Its just evasive bull s&*%!!
The only thing they wont be able to avoid is the plummeting share price.
That is something they will have no choice but to answer!!
Mr Joyce's letter:
Mr. Joyce boasts of the long term profitability of the airline, yet in another place states that even maintaining the purchasing power of Pilots and Engineers wages is too much for this airline to bear???????????
In other words, the entire future profitability of Australias National carrier, and the billions of dollars of shareholders funds involved, hangs on NOT giving Australian employees some element of job security and a maintaining the purchasing power of their wages????
This is cognitive dissonance at its worst.
I can just see what must have been said at Board level some years ago "OK Geoff we will approve purchase of 20 A380's because your strategy of destroying the Australian labor force is a winner."
These fukcwits are fighting the last war. Who the Fukc buys 20 A 380's yet calls the airline that will fly them a "legacy airline? What is going on here???????"
Qantas has been profitable every year since privatisation, including in each year of my time as CEO, and including at the height of the global financial crisis when airlines around the world were closing their doors, as well as winning many awards for product and service.
.........if accepted their claims would place an unsustainable cost burden on the airline
.........if accepted their claims would place an unsustainable cost burden on the airline
In other words, the entire future profitability of Australias National carrier, and the billions of dollars of shareholders funds involved, hangs on NOT giving Australian employees some element of job security and a maintaining the purchasing power of their wages????
This is cognitive dissonance at its worst.
I can just see what must have been said at Board level some years ago "OK Geoff we will approve purchase of 20 A380's because your strategy of destroying the Australian labor force is a winner."
These fukcwits are fighting the last war. Who the Fukc buys 20 A 380's yet calls the airline that will fly them a "legacy airline? What is going on here???????"
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Since when does AJ break news for Malaysian Airlines??? It is encouraging though, to see that AJ doesn`t bag Malaysian Airlines as quickly he bags his own airline & its employee`s!! AJ don`t let the door hit you on your a&%e on the way out.
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No flat beds in -400? Isn't there an extensive investment program to rectify this in the ER's and S, T & U?
I guess the other point which doesn't seem so clear is what is the cost of an A380? Call it $300m - 20x $300m = $6,000,000,000 ($6billion)
What has the investment in Jetstar been? 9xA330 at say $100m=$900,000,000 ($900mil)
Lets at least been factual, there has been and continues to be enormous investment in mainline and no where near as much in JQ Int.
I guess the other point which doesn't seem so clear is what is the cost of an A380? Call it $300m - 20x $300m = $6,000,000,000 ($6billion)
What has the investment in Jetstar been? 9xA330 at say $100m=$900,000,000 ($900mil)
Lets at least been factual, there has been and continues to be enormous investment in mainline and no where near as much in JQ Int.
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How many A320s? They sure as $#!t did not pay for all of that with buns and blankets. 787s to come.
Look, JQ is a legit and probably necessary venture and had to be funded by mum until set up but...said it many times but I just want the buggers to be honest about it all and stop the running down of the flagship and the constant slagging it and the people there get.
We all know the place is inefficient but that is something the managers must deal with. Too many empires and non productive types. AJ said he would fix it. Epic failure where I am.
Look, JQ is a legit and probably necessary venture and had to be funded by mum until set up but...said it many times but I just want the buggers to be honest about it all and stop the running down of the flagship and the constant slagging it and the people there get.
We all know the place is inefficient but that is something the managers must deal with. Too many empires and non productive types. AJ said he would fix it. Epic failure where I am.
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The original point of JQ was to annoy DJ and allow QF to concentrate on it's main money making product. Immediatley prior to JQ, QF started to experiment with all-economy QF domestic services. It didn't work. So they reconfigured QF back to two-class and set up JQ.
This annoyed DJ because they had to stay low-fare and low-product and couldn't compete with both JQ and QF mainline.
Then, the point of JQ Asia was to annoy Singair and Tiger. Then, the point of Tiger Australia was to counter-annoy JQ and QF in an equally childish response. Not really intended to make money, just annoy.
These annoying airlines are designed to keep the majors and their competitors from making the big money that proper airlines make. Yes it's cyclical, but there's big money there for those who do it right.
It's a bit like having a Kmart and a BiLo to distract the BigW and Franklins customers to make sure your Myer stores maintain market share. Now that's possibly a bad analogy because that company has gone where it's gone, but rest assured, BiLo was never it's saviour. It was there to annoy.
Now, all this was all kind-of working, and pre-GFC the QF operation was looking pretty good. But somewhere along the way someone got sidetracked.
In the couple of years pre-GFC, QF Mainline made 2 billion dollars profit in 2 years. They did it with Australian pilots and Engineers on current EBAs. In fact, they made so much money they had to pay an extra special dividend so as not to be embarrassed by how much money they had in the bank. This is more money than JQ could possibly make in 10 or 20 years even with the creative accounting bolstering their supposed profit.
That someone got lost in the plot and is obviously still sidetracked.
There are billion dollar profits ahead, if the right product is invested in and pursued and managed properly. There are plenty of first class airlines looking after their staff and their product who are testament to that. Qantas can still do that, and JQ will still serve it's annoying purpose, but it will never replace the money making machine.
Management permitting.
This annoyed DJ because they had to stay low-fare and low-product and couldn't compete with both JQ and QF mainline.
Then, the point of JQ Asia was to annoy Singair and Tiger. Then, the point of Tiger Australia was to counter-annoy JQ and QF in an equally childish response. Not really intended to make money, just annoy.
These annoying airlines are designed to keep the majors and their competitors from making the big money that proper airlines make. Yes it's cyclical, but there's big money there for those who do it right.
It's a bit like having a Kmart and a BiLo to distract the BigW and Franklins customers to make sure your Myer stores maintain market share. Now that's possibly a bad analogy because that company has gone where it's gone, but rest assured, BiLo was never it's saviour. It was there to annoy.
Now, all this was all kind-of working, and pre-GFC the QF operation was looking pretty good. But somewhere along the way someone got sidetracked.
In the couple of years pre-GFC, QF Mainline made 2 billion dollars profit in 2 years. They did it with Australian pilots and Engineers on current EBAs. In fact, they made so much money they had to pay an extra special dividend so as not to be embarrassed by how much money they had in the bank. This is more money than JQ could possibly make in 10 or 20 years even with the creative accounting bolstering their supposed profit.
That someone got lost in the plot and is obviously still sidetracked.
There are billion dollar profits ahead, if the right product is invested in and pursued and managed properly. There are plenty of first class airlines looking after their staff and their product who are testament to that. Qantas can still do that, and JQ will still serve it's annoying purpose, but it will never replace the money making machine.
Management permitting.
Last edited by HF3000; 9th Jun 2011 at 10:22.
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Big News from Qantas
Qantas announced today the following changes to it's business which will have immediate material effects.
Qantas will cancel and sell all A380 orders and A330 currently on the it's register. Most A330's operated but the mainline business will be sold to Jetstar.
Qantas will purchase 28 B777 with the B787 orders to remain.
All Rockwell Collins IFE systems will be replaced with Panasonic
Employees will be offered job security in the round of agreements which were welcomed by all unions. The company will partake in a share buy back scheme and offered employees and union a 10% stake in the company using a 0% loan facility in ensure future relationship in good faith.
Qantas will aggressively seek all third party work on Australian airports including maintenance, ramp services and customer check in.
Qantas has agreed to invest in the future of Aviation maintenance in Australia by re establishing the engine overhaul facilities in Sydney with new sites in Newcastle and Avalon.
Qantas is investing in future Australian pilots by increasing cadet intake and creating a new mentoring system.
Voluntary redundancies have been offered across the board allowing a breathe of fresh air across the company.
Alan Joyce has agreed to stand down with Leigh Clifford. Further announcements will be made regard the withdrawing of Jestar in foreign markets and new marketing to regain lost market share in the international business.
Qantas share price bounced 8% to $2.06
Qantas will cancel and sell all A380 orders and A330 currently on the it's register. Most A330's operated but the mainline business will be sold to Jetstar.
Qantas will purchase 28 B777 with the B787 orders to remain.
All Rockwell Collins IFE systems will be replaced with Panasonic
Employees will be offered job security in the round of agreements which were welcomed by all unions. The company will partake in a share buy back scheme and offered employees and union a 10% stake in the company using a 0% loan facility in ensure future relationship in good faith.
Qantas will aggressively seek all third party work on Australian airports including maintenance, ramp services and customer check in.
Qantas has agreed to invest in the future of Aviation maintenance in Australia by re establishing the engine overhaul facilities in Sydney with new sites in Newcastle and Avalon.
Qantas is investing in future Australian pilots by increasing cadet intake and creating a new mentoring system.
Voluntary redundancies have been offered across the board allowing a breathe of fresh air across the company.
Alan Joyce has agreed to stand down with Leigh Clifford. Further announcements will be made regard the withdrawing of Jestar in foreign markets and new marketing to regain lost market share in the international business.
Qantas share price bounced 8% to $2.06
