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Fallacy or Fact - Qantas International losses

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Fallacy or Fact - Qantas International losses

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Old 27th Jul 2011, 03:48
  #21 (permalink)  
 
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Why is the international section of the business losing money (so they claim), when those involved in procurement for the aircraft type (e.g.. A380 over B747 leases until 748's came online) make wonderful decisions? Do we cop the loss for their poor decision making criteria?
Another example is using A330's with light weight galley configurations instead of 777's?
Why is it that after these new A380's having entered service with a mixed configuration of seating only 450 odd passengers, that they end up getting a reconfiguration? Does this cost come out of the international business?
Who pays for the repaint work when shifting Qantas planes to Jetstar colours (and back again)?
What about the illegal international cargo trading Qantas mismanagement claims to have no idea about? Where does that funding come from?
The list grows...
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Old 27th Jul 2011, 04:01
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  • Exactly what part of the business pays the consultancy fees into consultancy firms linked to senior executives and their mates ?
  • Exactly what part of the business pays for fines relating to cartel activities and other assorted infringements as has been issued by the ACCC ?
  • Exactly what part of the business pays the fee's associated with sending senior executives to appear before senate inquiries, including their legal representation and associated costs ?
  • Exactly what part of the business takes accountability for previous profit/loss statements that often do not add up ?
  • Exactly what part of the business pays the redundancy payments across all sectors of the entire group when positions are made redundant (e.g Qantas, Jetstar, Australian air Express etc etc) ?
Remember, this is a company that lives to make profit. As a result, every cent is accounted for, tracked, moved, shuffled etc etc by somebody on the inside (and outside). They DO know where all the money is spread and how it is spread.
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Old 27th Jul 2011, 04:10
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Oh, they know all right. They just don't want YOU to know.
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Old 27th Jul 2011, 04:16
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You could ask Lyell to explain this:

The following is an extract from the j* maint control manual, chapter 13.5 POOL SPARES:

" JETSTAR AIRWAYS HAS BEEN SPONSORED BY QANTAS AS AN EQUALISED MEMBER OF THE IATP SPARES POOLING AGREEMENT. JETSTAR AIRWAYS DOES NOT PROVIDE ANY SPARES FOR THE POOL BUT RELIES UPON QANTAS FOR THEIR PROVISION. THE POOLING SYSTEM WILL BE OPERATED BY QANTAS ON BEHALF OF JETSTAR AIRWAYS IN ACCORDANCE WITH THE PROCEDURES SET DOWN IN THE QANTAS E&M PROCEDURES MANUAL (CHAPTER 4-60-005) AND RELATED DOCUMENTS"
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Old 27th Jul 2011, 04:53
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Jetstar crew report the account on their fuel dockets is Qantas International.
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Old 27th Jul 2011, 05:07
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Why do Jetstar fares never have the fuel surcharges that imposed on mainline imposed on it? Are the proceeds from these fares used to offset higher fuel prices across the group or just mainline?
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Old 27th Jul 2011, 05:08
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Jetstar crew report the account on their fuel dockets is Qantas International.
Wow, that alone is outrageous, if confirmed, a blatant fiddle that should be investigated by some of the institutional shareholders.
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Old 27th Jul 2011, 05:08
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How much does Jetstar charge QF for services provided? For example, space for freight on Jetstar flights?
I'm sure there are fees for a lot of these services listed above, the issue is are the rates charged/paid fair and reasonable?
One thing you can be sure of is Qantas is not being undercharged by Jetstar...
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Old 27th Jul 2011, 05:10
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Jetstar crew report the account on their fuel dockets is Qantas International.
Gosh sure is easy to run a business and make Jetstar look profitable when somebody else is picking up the fuel tab

No wonder International is screwed when all the expenses are piled onto it
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Old 27th Jul 2011, 05:28
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Qantas The Sugar Daddy

When you look at all costs apportioned to mainline its amazing its still in busniess.Bit like a Sugar Daddy looking after the wants and needs of a Red Headed tart and going broke in doing so.
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Old 27th Jul 2011, 05:31
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Crisis Control Centre on 5th floor QCC2 (gets used a lot these days). How much does Jetstar contribute to the extensive floor space,computors, furnishing etc?
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Old 27th Jul 2011, 05:32
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I would like to know why a QF A330 aircraft can be considered as loss making when it carries an average "high yeild" load factor of 82%, yet a Jetstar A330 aircraft can carry an average "low yeild" load factor of 77% on the exact same route, and be considered as profitable?

The only difference should be crew costs, and the sale of a muffin. Crew costs are not that much in the overall cost of operating an aircraft. Selling stale sandwiches does not yeild that much either.

Mathematically, the story given by Joyce is impossible. This needs to looked into. Jetscab have replaced mainline on routes where the A330 substituted for A330, and A320 has substituted for B737, and the principle remains valid. How can these mathematics be possible.

Short answer - IT ISN'T! It is a lie being told to justify the replacement of staff.
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Old 27th Jul 2011, 05:38
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I think I have decoded the master plan:

Borgetti to Virgin to lift its product up to a psudo Ansett and remove itself from competing with the low cost Jetstar model.

Wait for other LCC to go out of business eg Tiger.

Subsidise Jetstar so it looks super-profitable (forget about the profits only coming from muffin sales).

By subsidising Jetstar, make mainline look unprofitable.

Sell Jetstar for huge profit. Put proceeds in to re-equipping mainline.

Due to no subsidisation from mainline and public backlash, Jetstar fails.

Qantas now regains market share with better product and equipment

Sent from cloud cuckoo land...
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Old 27th Jul 2011, 05:49
  #34 (permalink)  
 
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The company knows 2011/12 is going to be tough industrially.

As such I'm sure the company has brought forward as many financial year 11/12 expenses as they could into the just completed financial year. Likewise revenue would be deferred if at all possible.

It would be nice to see if there has been a spike in this activity to artificially justify the doomsday agenda
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Old 27th Jul 2011, 05:51
  #35 (permalink)  
 
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I go the other way headmaster - been saying it for years

- Continue to build up Jetstar - gifting nearly all routes and keeping QF int. as a shell just operating LHR, SIN, LAX, JNB, offer currently QF staff redundancies whilst giving them 'preference' to apply for Jetstar positions - as a final straw kill off the remainder of QF international - by that point those a/c types are operational in the JQ fleet - transfer it all to jetstar, do a PR study which announces that QF is a stronger 'brand' that Jetstar in the QF group, and transfer all flying back to QF colours

Qantas International - operated by Jetstar...hope i'm wrong !!!!!!!!
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Old 27th Jul 2011, 06:05
  #36 (permalink)  
 
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What does Qantas charge Jetstar to lease 5 A320's from it? If it is market rates, why not lease from a normal leasing company?
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Old 27th Jul 2011, 06:28
  #37 (permalink)  
 
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Mr Buchanan are you on th board of Jetstar?

One of my favourites from the Senate Inquiry:

Sen Xen: Mr Joyce, are you on the board of Jetstar?
Mr Joyce: I am, yes.
Sen Xen: You are obviously on the board of Qantas?
Mr Joyce: Yes
Sen Xen: Being on the Board of Directors is an integral role in terms of key strategic decisions in the airline?
Mr Joyce: Yes
Sen Xen: Mr Buchanan are you on the board of Jetstar?
Mr B: No.
Sen Xen: You are not on the board of Jetstar?
Mr B: There are some subsiduary boards. All of the companies have three directors, which is the Chief Financial Officer, the Company Secretary and me.
Sen Xen: But, Mr Buchanan you are not on the board of Jetstar?
Mr B: No.
Sen Xen: Are you accountable to the board of Qantas or to the board of Jetstar?
Mr B: I am accountable to Alan and the Jetstar board, and ultimately through Alan to the Qantas board.


So lets see, the Board Of Directorsof Qantas, are Qantas CEO Alan Joyce, Qantas Chief Financial Officer Mr Gareth Evans and the Qantas Secretary Ms Cassandra Hamlin.

They are also directors of, you guessed it:
Jetstar
Jetconnect
Eastern Ausralia
Sunstate
Express Freighters

Wake up politicians and journo's.........
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Old 27th Jul 2011, 06:31
  #38 (permalink)  
 
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If the story about JQ fuel being on the QF account is correct, this to me sounds like what AirNZ was doing to Ansett in its final days. And it was proven to be the case.

Loading up one company at the expense of another, considering that most of the management are from either Ansett or AirNZ 10 years ago,I would not put it past them,as it was tactically a great way to put Ansett out of business, surely it can work again.
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Old 27th Jul 2011, 06:49
  #39 (permalink)  
 
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Where mainline assets have been transferred to Jetstar (eg A330s, established routes, landing rights etc) how much of mainline's debt has also been transferred?
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Old 27th Jul 2011, 06:49
  #40 (permalink)  
 
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What about the checkin staff in Perth who work for Qf and have to bring a JQ uniform to work and get changed to checkin for JQ and then back into Qf uniform. Who pays their wages? Unsure if this is still the practice but it was certainly happening a while back. Also I believe this was the practice in DRW a while back.
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