Qantas post August 24
Bruce gives warning to Qantas pilots
Sky's the limit for new aviation star in Asia | Herald Sun
WHEN Bruce Buchanan enthuses over Asia's incredible travelling expansion, the Jetstar boss speaks with the rapidity of a man flat out staying in front of aviation's most exciting market race.
Buchanan leads the world's fastest growing low-fare airline group, staying ahead of a North Asian market expansion of about 20 per cent a year fuelled by China's and South Korea's massive rising middle classes.
And he speaks with the authority of the increasing autonomy of the international Jetstar Group - which he sees inevitably overtaking the size of its parent, Qantas - and a confident directness on the local rivals Virgin Australia and the beleaguered Tiger.
He also warned the combative pilots union of "dire consequences" if it tries to press Qantas long-haul wage levels on to Jetstar.
Buchanan believes Australians who still think of Jetstar as primarily their locally-based low-cost carrier do not realise it will soon offer 60 destinations, half from the Singapore base of its Jetstar Asia sister.
"We've carried 20 million passengers in the past year after seven years of operation - the big low-cost carriers like Air Asia, Ryan Air in Europe, South West in the US, none of them reached that milestone so quickly. We're the fastest growing airline in the history of aviation," he said.
Last week Buchanan unveiled a $500 million investment in new aircraft which will take the Singapore base to four wide-bodied Airbus A330s and 17 A320s, new routes to Beijing, Ningbo and Hanoi and extra flights to Hong Kong, Taipei, Ho Chi Minh City, Kuala Lumpur, Bali and Jakarta.
The Asian business has tripled in three years.
"We're going to see a 4-5 times multiple for low-cost carriers in North Asia by the end of this decade," he said.
"I think there will be new Jetstar airlines which will appear in other parts of the world as well."
Buchanan "absolutely" believes Jetstar will become bigger than Qantas.
He thinks Jetstar and its main competitor Air Asia have already reached a size where economies of scale will make it tough for nationally-based airlines which used to have captive audiences to catch up.
Buchanan is comfortable with carrying the profit load on behalf of struggling Qantas, which he sees as temporary due to the business market strength of Qantas.
But he sees Jetstar revenue as growing faster than that of Qantas.
He believes some Qantas long-haul pilot salaries are "exorbitant' by international standards and said he would not tolerate any pay deal which would see Jetstar pilots paid the highest Qantas wages.
"If they try to impose those sorts of conditions, the dire consequences this will actually cause . . . we won't put the Qantas code share on our flights if that actually was to get up," Buchanan said.
"We're happy to get rid of it, no skin off our nose."
Buchanan said Jetstar only had a small proportional revenue on code-share connections to Qantas long-haul flights.
"We'd take the Qantas code off and you know what that will do?" he said.
"It's going to put you (pilots) in a worse situation, because they won't have the passenger traffic to continue to justify flying as many aircraft. So you'll wind up in this ridiculous situation where you cause your own demise even faster."
JETSTAR BROADENS HORIZONS
Passengers (2009-10) ............ 20 million
Destinations .............................. 58
Asian fleet ................................... 21 aircraft (by December)
North Asia growth ...................... Ahead of 17% annual projection
Employees .................................. 7000
Buchanan leads the world's fastest growing low-fare airline group, staying ahead of a North Asian market expansion of about 20 per cent a year fuelled by China's and South Korea's massive rising middle classes.
And he speaks with the authority of the increasing autonomy of the international Jetstar Group - which he sees inevitably overtaking the size of its parent, Qantas - and a confident directness on the local rivals Virgin Australia and the beleaguered Tiger.
He also warned the combative pilots union of "dire consequences" if it tries to press Qantas long-haul wage levels on to Jetstar.
Buchanan believes Australians who still think of Jetstar as primarily their locally-based low-cost carrier do not realise it will soon offer 60 destinations, half from the Singapore base of its Jetstar Asia sister.
"We've carried 20 million passengers in the past year after seven years of operation - the big low-cost carriers like Air Asia, Ryan Air in Europe, South West in the US, none of them reached that milestone so quickly. We're the fastest growing airline in the history of aviation," he said.
Last week Buchanan unveiled a $500 million investment in new aircraft which will take the Singapore base to four wide-bodied Airbus A330s and 17 A320s, new routes to Beijing, Ningbo and Hanoi and extra flights to Hong Kong, Taipei, Ho Chi Minh City, Kuala Lumpur, Bali and Jakarta.
The Asian business has tripled in three years.
"We're going to see a 4-5 times multiple for low-cost carriers in North Asia by the end of this decade," he said.
"I think there will be new Jetstar airlines which will appear in other parts of the world as well."
Buchanan "absolutely" believes Jetstar will become bigger than Qantas.
He thinks Jetstar and its main competitor Air Asia have already reached a size where economies of scale will make it tough for nationally-based airlines which used to have captive audiences to catch up.
Buchanan is comfortable with carrying the profit load on behalf of struggling Qantas, which he sees as temporary due to the business market strength of Qantas.
But he sees Jetstar revenue as growing faster than that of Qantas.
He believes some Qantas long-haul pilot salaries are "exorbitant' by international standards and said he would not tolerate any pay deal which would see Jetstar pilots paid the highest Qantas wages.
"If they try to impose those sorts of conditions, the dire consequences this will actually cause . . . we won't put the Qantas code share on our flights if that actually was to get up," Buchanan said.
"We're happy to get rid of it, no skin off our nose."
Buchanan said Jetstar only had a small proportional revenue on code-share connections to Qantas long-haul flights.
"We'd take the Qantas code off and you know what that will do?" he said.
"It's going to put you (pilots) in a worse situation, because they won't have the passenger traffic to continue to justify flying as many aircraft. So you'll wind up in this ridiculous situation where you cause your own demise even faster."
JETSTAR BROADENS HORIZONS
Passengers (2009-10) ............ 20 million
Destinations .............................. 58
Asian fleet ................................... 21 aircraft (by December)
North Asia growth ...................... Ahead of 17% annual projection
Employees .................................. 7000
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Thats the 3rd time that article has been posted. Someone needs to merge some of these threads and call it the Qantas hamsterwheel. Same sh1t going round and round in circles.
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Qantas post 24/08
Paul Daff - Ansett, time at Jetstar Asia before joining Skywest as CFO, quickly CEO and Director, Jetconnect as chief executive and now in Sydney setting up a company along the lines of Jetconnect.... yes the large red tailed, small sticker Jetconnect to be based..... Malaysia Singapore??????
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"If they try to impose those sorts of conditions, the dire consequences this will actually cause . . . we won't put the Qantas code share on our flights if that actually was to get up," Buchanan said.
Well at last we seem to have got to a reasonable outcome, let them go and do their own thing and pay their own costs. Problem solved. The bastard child can get what it needs, some home grown discipline and the opportunity to actually run a business on an equitable basis.
Well at last we seem to have got to a reasonable outcome, let them go and do their own thing and pay their own costs. Problem solved. The bastard child can get what it needs, some home grown discipline and the opportunity to actually run a business on an equitable basis.
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Management will continue choking Qantas and using it finance JQ until it is in a market commanding position to jack up fares. JQ product QF fares.
Perfect world for them.
Perfect world for them.
Offshore Failure!
PacBrands' offshore plan 'failure'
Jared Lynch
July 20, 2011
PACIFIC Brands' decision to sack thousands of Australian staff and move its manufacturing to China has failed to improve the embattled clothing group's earnings, says a senior analyst.
Merrill Lynch analyst David Errington, a long-time Pacific Brands critic, yesterday tipped the company's operating earnings to plummet by more than $80 million to about $100 million this financial year.
Pacific Brands has culled many of its brands to focus on iconic labels, including Bonds.
Advertisement: Story continues below
Mr Errington said the brand axing allowed new competitors, offering lower prices than Pacific Brands, into the market. ''Kmart is one key customer that has discontinued Bonds and other PacBrands products,'' he said in a client note.
While the underwear and hosiery market grew more than 2 per cent last year, Pacific Brands' key labels, Bonds, Berlei and Holeproof, fell almost 5 per cent, Mr Errington said.
He criticised the company's ''sudden'' exit from domestic manufacturing, saying it relied totally on overseas sourcing without having the necessary arrangements in place.
Pacific Brands chief executive Sue Morphet warned in February of hits to come due to rising cotton prices and increased labour and utility costs in China.
''We're in excellent shape for the longer term, but the near-term outlook is challenging due to soft trading conditions, import price increases and the performance of footwear, outerwear and sport,'' she said.
The company announced a half-year loss of $166 million in February. Since then its share price as fallen 42 per cent. Yesterday the shares fell 3¢, or 4.5 per cent, to 63.5¢.
Read more: PacBrands' offshore plan 'failure'
Jared Lynch
July 20, 2011
PACIFIC Brands' decision to sack thousands of Australian staff and move its manufacturing to China has failed to improve the embattled clothing group's earnings, says a senior analyst.
Merrill Lynch analyst David Errington, a long-time Pacific Brands critic, yesterday tipped the company's operating earnings to plummet by more than $80 million to about $100 million this financial year.
Pacific Brands has culled many of its brands to focus on iconic labels, including Bonds.
Advertisement: Story continues below
Mr Errington said the brand axing allowed new competitors, offering lower prices than Pacific Brands, into the market. ''Kmart is one key customer that has discontinued Bonds and other PacBrands products,'' he said in a client note.
While the underwear and hosiery market grew more than 2 per cent last year, Pacific Brands' key labels, Bonds, Berlei and Holeproof, fell almost 5 per cent, Mr Errington said.
He criticised the company's ''sudden'' exit from domestic manufacturing, saying it relied totally on overseas sourcing without having the necessary arrangements in place.
Pacific Brands chief executive Sue Morphet warned in February of hits to come due to rising cotton prices and increased labour and utility costs in China.
''We're in excellent shape for the longer term, but the near-term outlook is challenging due to soft trading conditions, import price increases and the performance of footwear, outerwear and sport,'' she said.
The company announced a half-year loss of $166 million in February. Since then its share price as fallen 42 per cent. Yesterday the shares fell 3¢, or 4.5 per cent, to 63.5¢.
Read more: PacBrands' offshore plan 'failure'
