First QF B787s to be given to Jetstar Asia under Singapore AOC
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That is my point, the low cost carrier I worked for in the UK repeatedly used to tell us that we made absolutely NO profit from passenger tickets and that ALL the profits for the airline came from the onboard bar / cart and other revenue such as hire car / hotel deals. This is NOT uncommon for low cost carriers. So when Bruce said that all profits come from muffins, this is actually not unexpected for a low cost carrier. It has yet to be shown that Jetstar receives ANY real benefit from Qantas. They may do, but then again they may not, it is not totally unrealistic that Jetstar does actually make a profit with this business model. Qantas is losing money in its international operations which once again is NOT unexpected in the current climate. Just look at the list of 'legacy' carriers that are currently bleeding money on longhaul flying:
British Airways
Singapore Airlines
Qantas
Air New Zealand
American Airlines
Lufthansa
Air France / KLM
Once again I will ask, if Jetstar can only make a profit due to Qantas subsidies then how do all those other low cost carriers make so much profit from their muffin selling when they are not supported by any legacy carrier parent.
British Airways
Singapore Airlines
Qantas
Air New Zealand
American Airlines
Lufthansa
Air France / KLM
Once again I will ask, if Jetstar can only make a profit due to Qantas subsidies then how do all those other low cost carriers make so much profit from their muffin selling when they are not supported by any legacy carrier parent.
No doubt JQ domestic makes money and is probably a good investment by QF group, J* asia perhaps turns a dollar. As for the rest, I'd like to see how much J* international makes? Separate it like QF Int.
J* pacific (basket case), J* NZ I'd like to see if they return the cost to capital. J* Japan has about one pilot application.
As for Ryan air et al. They are subsidised in a way by the some of *&%@hole airports that they fly into. Low cost carriers in Europe and the US make some sense due to high population density and large number of airports.
Which low cost long haul airline is making money?
J* pacific (basket case), J* NZ I'd like to see if they return the cost to capital. J* Japan has about one pilot application.
As for Ryan air et al. They are subsidised in a way by the some of *&%@hole airports that they fly into. Low cost carriers in Europe and the US make some sense due to high population density and large number of airports.
Which low cost long haul airline is making money?
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Return on Capital Employed
If Jetstar makes money by selling muffins and loses on everything else, then it would seem logical to this simple mind that shareholders in QAN would be better off if:
1.all flying ops were ceased;
2. the $3bn cash pile either distributed back to shareholders or put on term depo at 5% (I'm getting that for 6mths at the moment so it shouldn't be hard for the treasury to get) = $150m / year interest;
3. flying-related assets sold off and the resulting cash used to purchase muffin-selling assets (a Mrs Fields franchise, perhaps?).
Flying aeroplanes around is an expensive way to run a muffin-flogging outfit.
1.all flying ops were ceased;
2. the $3bn cash pile either distributed back to shareholders or put on term depo at 5% (I'm getting that for 6mths at the moment so it shouldn't be hard for the treasury to get) = $150m / year interest;
3. flying-related assets sold off and the resulting cash used to purchase muffin-selling assets (a Mrs Fields franchise, perhaps?).
Flying aeroplanes around is an expensive way to run a muffin-flogging outfit.
Ryanair: 487 million euro profit last year (270 aircraft)
FlyBe: 14.3 million pound profit last year (67 aircraft)
EasyJet: 248 million pound profit last year (183 aircraft)
Southwest Airlines: 459 million USD profit last year (559 aircraft)
FlyBe: 14.3 million pound profit last year (67 aircraft)
EasyJet: 248 million pound profit last year (183 aircraft)
Southwest Airlines: 459 million USD profit last year (559 aircraft)
How many aeroplanes do these guys operate to return that type of profit?
This equals a ****load of capital and the returns are not great. It's just a numbers game.
How many aeroplanes do Singapore airlines operate? Cathay? Qantas in 2008?
What type of profit do they generate from a little thing called yield?
The only way Jetstar for instance makes sense is if you see it from the bean counters perspective. They want Qantas yields with Jetstar costs.
Unfortunately what they can't factor into the spreadsheet is the quality of staff that compliments the product. For instance a flight attendant who is well paid will attract a certain type of person. A career person so to speak. They will act professionally and relate to high yield customers effortlessly. The Qantas 767 and 747 crew are a good example. While presently jaded and probably not operating to their previous standards they are generally intelligent, experienced, well groomed, knowledgable and would be a credit to Qantas in any emergency.
An australian flight attendant who earns a pittance will not be there as a career. They will be enjoying a couple of years of travel and partying until they get a real job. They are 20 something bimbos who wouldn't know a jet engine from a hair dryer. Often pretty on the eye but lacking in respect or service. They are more interested in hanging in the rear galley discussing nail polish techniques or how smashed they got on their last RDO.
Borghetti is onto it. Virgin don't have a market in Australia big enough to justify a Ryanair fleet chasing numbers. So he has gone after yield. He has also increased the quality of the staff via remuneration that values them. The right candidates are now coming online and every time I fly virgin I am nothing but impressed.
All of the boys I used to fly with that are there are pretty happy about the place and believe in the companies future. There is even talk about more 330s from Kingfisher's unfilled orders and 737 expansion.
I should have taken the red pill.
Sigh
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Ryanair: 487 million euro profit last year (270 aircraft)
FlyBe: 14.3 million pound profit last year (67 aircraft)
EasyJet: 248 million pound profit last year (183 aircraft)
Southwest Airlines: 459 million USD profit last year (559 aircraft)
FlyBe: 14.3 million pound profit last year (67 aircraft)
EasyJet: 248 million pound profit last year (183 aircraft)
Southwest Airlines: 459 million USD profit last year (559 aircraft)
I agree with GG, thats a huge amount of aircraft !!
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And one massive loss from Kingfisher makes these figures look rather small. To also hear that Kingfisher never turned a profit since its inception
priceless TIMA9X.
But it will never happen, why? because AJ said so back in Oct 2009.
In an interview leading up to last week's Qantas annual meeting, chief executive Alan Joyce moved to allay fears among the company's 35,000 employees that the national carrier would continue to be "Jetstarised" to further lower costs as the group faces unprecedented price competition on its key international routes.
But it will never happen, why? because AJ said so back in Oct 2009.
In an interview leading up to last week's Qantas annual meeting, chief executive Alan Joyce moved to allay fears among the company's 35,000 employees that the national carrier would continue to be "Jetstarised" to further lower costs as the group faces unprecedented price competition on its key international routes.
and
"We have decided that, with Qantas, we have gone to a minimum network, a network we can't drop below," Joyce was reported as saying. "There will be no further replacement of Qantas flights with Jetstar – that's it."
"We have decided that, with Qantas, we have gone to a minimum network, a network we can't drop below," Joyce was reported as saying. "There will be no further replacement of Qantas flights with Jetstar – that's it."
Read more: Qantas will not be 'Jetstarised': Joyce
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The makeover of Alan Joyce has started.... The Australian 21-03-12
In an interview leading up to last week's Qantas annual meeting, chief executive Alan Joyce moved to allay fears among the company's 35,000 employees that the national carrier would continue to be "Jetstarised" to further lower costs as the group faces unprecedented price competition on its key international routes.
Guess who The Australian again of course... but not written by Creedy...... it feels like he's campaigning for a build up to a big announcement of some sort soon..... change of the Asia strategy perhaps......
Alan Joyce on cancer, coming out and his 'modest' $5m pay
Cookies must be enabled. | The Australian
QANTAS chief executive Alan Joyce has defended his $5 million salary and claimed aircrew get paid more on an hourly basis.
In comments sure to infuriate pilots still smarting over protracted and bitter workplace negotiations with management, Mr Joyce said his salary today was less than it was in 2008 when he was chief executive of Jetstar.
This was despite a $2m bonus awarded at last year's annual general meeting on the morning before he historically grounded the airline. "What Qantas pays me as CEO is actually very conservative compared with other ASX 100 companies, and if you ranked salaries by hours worked I'm not even the highest paid person in Qantas because the pilots and senior captains get paid a lot more," Mr Joyce said.
"The industrial crisis of 2011 was not a dispute over pay, as all the unions said. It was a dispute over management's ability to manage and unfair restrictions being placed on our ability to manage our company."
In an interview with GQ, Mr Joyce talks about telling his family he is gay, surviving cancer, his childhood in Ireland and mistakes he has made during his career.
"I could pick a load of mistakes I've made, but the one that stands out is when we set up Jetstar without assigned seating on the aircraft," he told the magazine in a response sure to be met with incredulity by the 70,000 passengers left stranded worldwide when he grounded the airline last October for almost 48 hours.
"It was a disaster and I was the one who'd insisted on doing it," he said of his Jetstar seating decision. "It was a valuable lesson and it taught me this: If you know you've f . . ked up, admit it immediately, then take fast action to fix it."
Mr Joyce, 45, was appointed Qantas chief executive in 2008. He began with Irish carrier Aer Lingus in the 1980s and 90s before joining Ansett in its dying days and launching Jetstar in 2003.
The locking out of unionised workers last October to secure Fair Work Australia arbitration of disputes with pilots, engineers and baggage-handler unions made him a figure of loathing for staff at Qantas, but a hero to big business.
He said it was tough growing up gay in the Dublin working-class suburb of Tallaght, but that he enjoyed "very supportive parents". Today he lives in an apartment in The Rocks with his partner of 14 years, an unidentified New Zealand man. "(Coming out) was a big moment, but there was no real inner turmoil for me and it wasn't a surprise to my family."
He also spoke of the trauma of being diagnosed with aggressive prostate cancer. "What came into sharp focus in the aftermath of the cancer scare was my determination to do the right thing by Qantas and the honour it is to be CEO. I want to make sure that when I leave it's a lot stronger . . . than when I arrived."
Cookies must be enabled. | The Australian
- by: Nick Leys
- From: The Australian
- March 21, 2012 12:00AM
QANTAS chief executive Alan Joyce has defended his $5 million salary and claimed aircrew get paid more on an hourly basis.
In comments sure to infuriate pilots still smarting over protracted and bitter workplace negotiations with management, Mr Joyce said his salary today was less than it was in 2008 when he was chief executive of Jetstar.
This was despite a $2m bonus awarded at last year's annual general meeting on the morning before he historically grounded the airline. "What Qantas pays me as CEO is actually very conservative compared with other ASX 100 companies, and if you ranked salaries by hours worked I'm not even the highest paid person in Qantas because the pilots and senior captains get paid a lot more," Mr Joyce said.
"The industrial crisis of 2011 was not a dispute over pay, as all the unions said. It was a dispute over management's ability to manage and unfair restrictions being placed on our ability to manage our company."
In an interview with GQ, Mr Joyce talks about telling his family he is gay, surviving cancer, his childhood in Ireland and mistakes he has made during his career.
"I could pick a load of mistakes I've made, but the one that stands out is when we set up Jetstar without assigned seating on the aircraft," he told the magazine in a response sure to be met with incredulity by the 70,000 passengers left stranded worldwide when he grounded the airline last October for almost 48 hours.
"It was a disaster and I was the one who'd insisted on doing it," he said of his Jetstar seating decision. "It was a valuable lesson and it taught me this: If you know you've f . . ked up, admit it immediately, then take fast action to fix it."
Mr Joyce, 45, was appointed Qantas chief executive in 2008. He began with Irish carrier Aer Lingus in the 1980s and 90s before joining Ansett in its dying days and launching Jetstar in 2003.
The locking out of unionised workers last October to secure Fair Work Australia arbitration of disputes with pilots, engineers and baggage-handler unions made him a figure of loathing for staff at Qantas, but a hero to big business.
He said it was tough growing up gay in the Dublin working-class suburb of Tallaght, but that he enjoyed "very supportive parents". Today he lives in an apartment in The Rocks with his partner of 14 years, an unidentified New Zealand man. "(Coming out) was a big moment, but there was no real inner turmoil for me and it wasn't a surprise to my family."
He also spoke of the trauma of being diagnosed with aggressive prostate cancer. "What came into sharp focus in the aftermath of the cancer scare was my determination to do the right thing by Qantas and the honour it is to be CEO. I want to make sure that when I leave it's a lot stronger . . . than when I arrived."
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The New Jetstar Singapore 787 controller
What is the expected arrival date of the first Jetstar 787 in Singapore? This summer? How many total by the end of 2012 expected?
The Jetstar Group is expected to receive the first of 15 B787-8s as part of an order of 50 Dreamliners by parent company, the Qantas Group. Singapore travellers will be among the first Jetstar passengers to fly on the Dreamliner from its expanding Southeast Asian hub.
Jetstar on-track to be the first LCC to fly Dreamliner
Jetstar on-track to be the first LCC to fly Dreamliner
New CEO for Jetstar Asia
Incoming Jetstar Asia CEO Barathan Pasupathi. THE Qantas-backed Singaporean budget airline Jetstar Asia has named a former chief financial officer as the replacement for its well-respected chief executive for the past six years, Chong Phit Lian.
Just a day after Jetstar inked a deal with China Eastern to set up a low-cost affiliate in Hong Kong, the Singaporean operation appointed Barathan Pasupathi as its next chief executive.
Mr Pasupathi, a Singaporean citizen, was at Jetstar Asia between 2004 and 2007, before shifting to Kuwait to work for Jazeera Airways and later a German oil company in Singapore.
Ms Chong resigned as chief executive in December, and stepped down on February 1.
Jetstar Asia seconded Paul Daff, most recently the boss of Qantas' New Zealand subsidiary Jetconnect, to Singapore as Jetstar Asia's interim chief executive.
Mr Daff will remain until Mr Pasupathi takes up his new role on July 2.
Shares in Qantas rose 1.5¢ to $1.78 yesterday after analysts reacted positively to its plans to launch Jetstar Hong Kong next year as part of a 50:50 joint venture with Shanghai-based China Eastern.
Jetstar Asia chairman Dennis Choo said Mr Pasupathi, one of the budget airline's founding executives, had a ''first-hand understanding of our business as well as the aviation sector overall''.
The departure of Ms Chong was seen as a blow to Jetstar Asia as she was credited with helping boost routes from Singapore to other parts of Asia and making the carrier profitable after several years of losses.
Jetstar Asia's main rivals are Singapore Airlines-backed Tiger Airways and Malaysian budget airline AirAsia. It will also face competition from Singapore Airline's new budget airline, Scoot, which will begin daily services between Singapore and Sydney in June.
Jetstar Asia is the Australian airline's biggest operation outside Australia. The Singaporean company posted a pre-tax profit of $S18 million ($A14 million) for the year to June, its biggest profit since it began service in 2004.
In 2009, Qantas invested $S25 million to boost its stake in Jetstar Asia to 49 per cent and Mr Choo, a Singaporean businessman and long-time Qantas associate, raised his holding to 51 per cent by buying out minority shareholders, including the Singapore government's investment arm, Temasek.
Read more: New CEO for Jetstar Asia
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Temasek bailed 6 years ago in 2006. Jetstar Asia has never received preferential treatment in SIN and has access to the same incentives that SIA and other SIN-based carriers have when launching new routes.
Arguably, Jetstar Asia has expanded much better without Temasek ownership. But Temasek ownership in the beginning was probably useful to get the venture up and running. Dixon announced Jetstar Asia when the venture actually already secured government approval, with planned routes and schedules (back in 2003).
Arguably, Jetstar Asia has expanded much better without Temasek ownership. But Temasek ownership in the beginning was probably useful to get the venture up and running. Dixon announced Jetstar Asia when the venture actually already secured government approval, with planned routes and schedules (back in 2003).
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And of interest.
BP was at Jazerra Airways (LCC) based in Kuwait.
Where in 2010 the airline model proved unsuccessful due to an overcapacity in Kuwait. Aicraft were parked (returned to lessors) and deliveries of 25 x A320's cancelled.
BP was at Jazerra Airways (LCC) based in Kuwait.
Where in 2010 the airline model proved unsuccessful due to an overcapacity in Kuwait. Aicraft were parked (returned to lessors) and deliveries of 25 x A320's cancelled.
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Dixon announced Jetstar Asia when the venture actually already secured government approval, with planned routes and schedules (back in 2003).
1. None of your staff believes a word you say; and
2. None of your staff believes you have any competence to run the airline?
Soon after the appointment of Alan Joyce, a fairly senior, and well respected, Qantas Group manager told me the primary aim of the Board Chairman and CEO was to continue to drive the entire airline to the Jetstar model.
In that respect their goals and targets are well on the way to being fulfilled, in probably a considerably shorter timeframe than expected, and thus personal bonuses are being awarded.
Sad really.
In that respect their goals and targets are well on the way to being fulfilled, in probably a considerably shorter timeframe than expected, and thus personal bonuses are being awarded.
Sad really.
Off course they want the entire airline on the Jetstar model. Imagine the cost savings if they can still have the Qantas branded aircraft flying around with the Pilots / Cabin Crew / Ground Staff etc on Jetstar pay and conditions. I firmly believe that the public don't give a toss who is actually up the front or what country they are employed in.
I hope to god they are not successful but I think the plan is becoming clearer by the month. Good luck!!
Ollie
I hope to god they are not successful but I think the plan is becoming clearer by the month. Good luck!!
Ollie
You miss the point Ollie. It's not just the staff on Jetstar wages.
They want the entire airline to be Jetstar; the Jetstar product. Their intent was then and still is now, to kill off the Qantas product and replace it with Jetstar.
But I guess that's obvious now.
They want the entire airline to be Jetstar; the Jetstar product. Their intent was then and still is now, to kill off the Qantas product and replace it with Jetstar.
But I guess that's obvious now.
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to kill off the Qantas product and replace it with Jetstar
Behind every great fortune there is a crime.
--Honore de Balzac
French realist novelist (1799 - 1850)
--Honore de Balzac
French realist novelist (1799 - 1850)
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So, what of the rumour that the project to see Jetstar A330's with VH rego, to be transfered to Singapore rego has been canned due to financial and regulatory issues. Will this hamper the 787 introduction straight into Singapore?