QANTAS - WHERE TO NOW?
JB has identified what is essentially wrong with Qantas strategy & is implementing the opposite within Virgin.
It's a poke in the eye for QF's strategy over the last 8 years.
To provide a premium product costs money, and JB has been happy to do this, but this increase in costs makes it impossible to compete in the lower end of the market, hence the Tiger aquisition. The fact that he has had to buy into a loss making airline to compete with J* shows that Virgin can't compete anymore with the LCC end of the market. As has been found at Qantas, throw away lines about not competing on routes of the parent airline mean nothing when it comes to reducing costs and making a profit.
Unfortunately Qantas upper management and the board will see this as proof the current Qantas strategy is working, nothing will change at the AGM.
JB is the type of CEO joyce could never be, I hope he can somehow guide the Virgin Group of Companies through this more smoothly than it has been handled by QANTAS.
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ANCDU
Agreed. There is nothing essentially wrong with the Qantas two brand strategy. The same that JB is adopting. However my criticism is how Qantas has failed to both manage and adopt that new strategy & engage their employees in the process.
Agreed. There is nothing essentially wrong with the Qantas two brand strategy. The same that JB is adopting. However my criticism is how Qantas has failed to both manage and adopt that new strategy & engage their employees in the process.
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The difference in the strategy is Jetstar International and Jetstar Asia.
Joyce has tied up QF's capital in ordering 110 A320 Neo's as replacement/expansion aircraft. That is the real reason he has stated that there will be no investment in QF international "till it turns a profit". He has run out of money to invest in mainline International because of the concentration on expanding Jetstar, particularly Jetstar Asia.
Tiger won't be operating two class widebodies internationally from OZ. They will leave that for the premium carrier. They have learned from the ideological idiocy of the QF incumbents and won't make that error.
Joyce has tied up QF's capital in ordering 110 A320 Neo's as replacement/expansion aircraft. That is the real reason he has stated that there will be no investment in QF international "till it turns a profit". He has run out of money to invest in mainline International because of the concentration on expanding Jetstar, particularly Jetstar Asia.
Tiger won't be operating two class widebodies internationally from OZ. They will leave that for the premium carrier. They have learned from the ideological idiocy of the QF incumbents and won't make that error.
Originally Posted by Capt Kremin
Tiger won't be operating two class widebodies internationally from OZ. They will leave that for the premium carrier. They have learned from the ideological idiocy of the QF incumbents and won't make that error.
never say never! who knows, they may do it and do it well having learnt from the jetstar intl debacle.
Not that I think it will necessarily happen...
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The "group" strategy looks very similiar to QANTAS's strategy....even identical.
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Joyce has tied up QF's capital in ordering 110 A320 Neo's as replacement/expansion aircraft
Watching that interview with JB, it feels like JB is trying to target the Qantaslink, the regional segment of the Qantas group. I hope the new management at Qantaslink has something up their sleeves.
Originally Posted by Capt Kremin
Originally Posted by maggot
says who?
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Bubble.head
Me too!
SN
Watching that interview with JB, it feels like JB is trying to target the Qantaslink, the regional segment of the Qantas group. I hope the new management at Qantaslink has something up their sleeves.
SN
Nunc est bibendum
...and jetstar will never have more than 12 717s (or whatever it was)...
Last edited by Keg; 31st Oct 2012 at 05:16. Reason: Had to fix ubb code
TIMA9X, Qantas didn't codeshare at the start either, look what happened. Its a great announcement but i think its a bit naive to think that if the pressure is put on Virgin that the same won't happen. Whatever happens i think the next 12 months will be interesting....and very cheap for the travelling public.
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if the pressure is put on Virgin that the same won't happen. Whatever happens i think the next 12 months will be interesting....and very cheap for the travelling public.
having said that, I think JB would think long and hard about traveling down the same codeshare path as QF/JQ did. I believe that was one of the mistakes JB identified in the clip... without saying it directly.. time will tell I guess, but I agree, the traveling public are in for some good deals over the coming months..
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Disgruntled shareholders
A disgruntled shareholder has accused the Qantas Airways board of "destroying" the airline's international
Also, the shareholder said management and the board had shown "disloyalty" to staff, given "the way you sit up here and blame everybody".
"You have sold out and you have sold Qantas out," the shareholder said at Qantas's annual general meeting in Canberra on Friday.
"You have actually destroyed the international brand."
The shareholder also touched on Qantas chief executive Alan Joyce's decision to ground the fleet in 2011, which was announced the day after the 2011 annual general meeting.
She said it was "obvious that you had another agenda" at the AGM.
"I have come from Sydney and I have also taken the precaution to drive down just in case you pulled any more of your stunts," the shareholder said.
On October 29 2011, Mr Joyce grounded the Qantas's entire fleet and said staff would be locked out as part of the airline's industrial dispute with the Australian and International Pilots Association (AIPA), the Transport Workers Union (TWU) and the Australian Licensed Aircraft Engineers Association (ALAEA).
The move left 70,000 Qantas passengers around the world stranded and cost $194 million in 2011/12, according to the company's full year results released in August.
In response to the question, Qantas chairman Leigh Clifford said the airline's international brand was in "very good shape".
"As a consequence Emirates was interested in entering an alliance with us," Mr Clifford said.
"So that is indicative of the esteem with which Emirates holds Qantas."
Also, the shareholder said management and the board had shown "disloyalty" to staff, given "the way you sit up here and blame everybody".
"You have sold out and you have sold Qantas out," the shareholder said at Qantas's annual general meeting in Canberra on Friday.
"You have actually destroyed the international brand."
The shareholder also touched on Qantas chief executive Alan Joyce's decision to ground the fleet in 2011, which was announced the day after the 2011 annual general meeting.
She said it was "obvious that you had another agenda" at the AGM.
"I have come from Sydney and I have also taken the precaution to drive down just in case you pulled any more of your stunts," the shareholder said.
On October 29 2011, Mr Joyce grounded the Qantas's entire fleet and said staff would be locked out as part of the airline's industrial dispute with the Australian and International Pilots Association (AIPA), the Transport Workers Union (TWU) and the Australian Licensed Aircraft Engineers Association (ALAEA).
The move left 70,000 Qantas passengers around the world stranded and cost $194 million in 2011/12, according to the company's full year results released in August.
In response to the question, Qantas chairman Leigh Clifford said the airline's international brand was in "very good shape".
"As a consequence Emirates was interested in entering an alliance with us," Mr Clifford said.
"So that is indicative of the esteem with which Emirates holds Qantas."
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The move left 70,000 Qantas passengers around the world stranded and cost $194 million in 2011/12, according to the company's full year results released in August.
In response to the question, Qantas chairman Leigh Clifford said the airline's international brand was in "very good shape".
"As a consequence Emirates was interested in entering an alliance with us," Mr Clifford said.
"So that is indicative of the esteem with which Emirates holds Qantas."
KEEP READING
Six months ago he said international was in bad shape,after closing Tullamarine maintenance international have turnaround,management has vendetta against engineers.
In response to the question, Qantas chairman Leigh Clifford said the airline's international brand was in "very good shape".
"As a consequence Emirates was interested in entering an alliance with us," Mr Clifford said.
"So that is indicative of the esteem with which Emirates holds Qantas."
KEEP READING
Six months ago he said international was in bad shape,after closing Tullamarine maintenance international have turnaround,management has vendetta against engineers.
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Aircraft don't require maintenance
Qantas Airways chief executive Alan Joyce says the company's maintenance workload will fall by 60 per cent in the period ahead as new aircraft enter the fleet and older ones leave.
As such, the airline group had no need for its multiple heavy maintenance sites in Australia.
'Three heavy maintenance bases is not viable,' Mr Joyce told shareholders at Qantas' annual general meeting in Canberra on Friday.
'Having people do maintenance on aircraft that doesn't need maintenance - and no other airline in the world does that - is not viable.
'We need to ensure that it is sufficiently viable and there for the long term.'
Bad press report when your customer read that.so why Singapore and Cathay pacific or emirates reduce engineers if maintenance is not required
As such, the airline group had no need for its multiple heavy maintenance sites in Australia.
'Three heavy maintenance bases is not viable,' Mr Joyce told shareholders at Qantas' annual general meeting in Canberra on Friday.
'Having people do maintenance on aircraft that doesn't need maintenance - and no other airline in the world does that - is not viable.
'We need to ensure that it is sufficiently viable and there for the long term.'
Bad press report when your customer read that.so why Singapore and Cathay pacific or emirates reduce engineers if maintenance is not required
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"As a consequence Emirates was interested in entering an alliance with us," Mr Clifford said.
Last edited by Lodown; 2nd Nov 2012 at 02:53.
I'm no expert on the QF/Jetstar thing, but wasn't JB heavily involved, if not the architect of that.
That being the case, and knowing what I do know about JB's talent for deception, I wouldn't believe a F*&^%$g word he says about what will or wont happen.
My advice is to stand back, take a look, and do your own assessment. And always remember..............If it walks like a duck, quacks like a duck and looks like a duck, its probably a duck.
That being the case, and knowing what I do know about JB's talent for deception, I wouldn't believe a F*&^%$g word he says about what will or wont happen.
My advice is to stand back, take a look, and do your own assessment. And always remember..............If it walks like a duck, quacks like a duck and looks like a duck, its probably a duck.
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So now Joyce, Clifford and co's business strategy for future Qantas growth is solely based on Emirates profitability and internal cost cutting.
Great business plan
Thats because we are giving them all of our travellers to Europe from all major Australian ports except Sydney and Melbourne for nothing in return.
Next we will gift our USA flying to another airline, then all the flying to Asia will be handed to jetstar and it will be mission complete for Joyce.
Qantas then can compete with Flight centre as a travel agency.
Internationals not profitable, profitable, not profitable, profitable, is in good shape, is a basket case, can't compete, is very competitive, is irrelevant, is a major player?????
Anyone else getting dizzy from all this spin????
Great business plan
"As a consequence Emirates was interested in entering an alliance with us," Mr Clifford said.
Next we will gift our USA flying to another airline, then all the flying to Asia will be handed to jetstar and it will be mission complete for Joyce.
Qantas then can compete with Flight centre as a travel agency.
In response to the question, Qantas chairman Leigh Clifford said the airline's international brand was in "very good shape".
Anyone else getting dizzy from all this spin????
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Nothing has changed.
The board dismisses the protests of some shareholders and continues on regardless. It's clear that they believe they are untouchable and their strategy will remain despite anyone else.
This is the power of the board and they know they have three strikes to use.
Why listen to anyone that knows less than them and what's a few disgruntled shareholders to the big picture.?
The board dismisses the protests of some shareholders and continues on regardless. It's clear that they believe they are untouchable and their strategy will remain despite anyone else.
This is the power of the board and they know they have three strikes to use.
Why listen to anyone that knows less than them and what's a few disgruntled shareholders to the big picture.?