Qantas Group - New Airline Structure
F
Domestically this will almost be a return to the days of the 2 airline policy.The duolopy of Ansett and TAA.It will be interesting to compare now the fleet numbers and aircraft types between QF domestic and VA.Today we have Jetstar and Tiger in the market as well.My question is what % of the domestic market does QF have?I thought the figure was 65%,but i'm not sure whether that includes Jetstar or not?
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There'll be even more room for dodgy accounting now...
Just imagine... You now have a domestic operation which is a seperate company from the international operation, yet every int'l aircraft (minus A380) operates domestically! In fact, that's primarily what the 767 and 332s do. So you'll have QF Int'l aircraft, pilots and cabin crew operating on behalf of domestic, and carrying almost HALF the total national domestic passengers! Will Long haul be charging domestic for their business?
Seriously, if they are seperate companies, and they are reporting results seperately, surely there must be a user pays system to be set up???
Just imagine... You now have a domestic operation which is a seperate company from the international operation, yet every int'l aircraft (minus A380) operates domestically! In fact, that's primarily what the 767 and 332s do. So you'll have QF Int'l aircraft, pilots and cabin crew operating on behalf of domestic, and carrying almost HALF the total national domestic passengers! Will Long haul be charging domestic for their business?
Seriously, if they are seperate companies, and they are reporting results seperately, surely there must be a user pays system to be set up???
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And what about Frau Wirthless? Now three for the price of one? Will she be popping up defending QF Dom, QF Int and JQ??
Even bigger question - Will Bruce 'face cream' Buchanan gift her a decades worth of his newly endorsed product? Now that would be value adding!
Mstr Caution, there is always some scope of regulatory activity taking place within the QF group predominately due to it's size. However don't hold your breath in regard to any regulatory action, hasn't happened before. I seriously doubt that Albo would allow such an atrocity to take place. However the senate inquiry could just be the meal ticket. It will be a test on whether Nick, Heff and Cameron hold any true power in politics or whether their intentions are honorable but weightless. Time will tell. Then again, a CEO is the accountable person, so person BB has a crystal ball which is telling him to move on and into the face cream business?
P.S Anybody know if BB's new face cream is also good for skinned knees and elbows? There will lots of wannabe up and coming managers catching that condition with the new structure imminent.
Even bigger question - Will Bruce 'face cream' Buchanan gift her a decades worth of his newly endorsed product? Now that would be value adding!
Mstr Caution, there is always some scope of regulatory activity taking place within the QF group predominately due to it's size. However don't hold your breath in regard to any regulatory action, hasn't happened before. I seriously doubt that Albo would allow such an atrocity to take place. However the senate inquiry could just be the meal ticket. It will be a test on whether Nick, Heff and Cameron hold any true power in politics or whether their intentions are honorable but weightless. Time will tell. Then again, a CEO is the accountable person, so person BB has a crystal ball which is telling him to move on and into the face cream business?
P.S Anybody know if BB's new face cream is also good for skinned knees and elbows? There will lots of wannabe up and coming managers catching that condition with the new structure imminent.
Last edited by gobbledock; 22nd May 2012 at 12:34.
It'll be interesting to understand how they work it all out. Quite often there is international fleet on domestic routes. Basically if its got a skybed in it, its an international aircraft.
Syd-Per B744 ?
Syd/Mel-Per A333 ?
Dom positioning towed to ITB to operate international flight ?
Who pays for the fuel, dom arrival intl departure ?
Cabin/Tech crew operating a dom service and subsequently departing internationally ?
B767's operating domestic and HNL same day ?
The list is endless about how intertwined it all is which is why costs can be apportioned wherever the accountants see fit.
Syd-Per B744 ?
Syd/Mel-Per A333 ?
Dom positioning towed to ITB to operate international flight ?
Who pays for the fuel, dom arrival intl departure ?
Cabin/Tech crew operating a dom service and subsequently departing internationally ?
B767's operating domestic and HNL same day ?
The list is endless about how intertwined it all is which is why costs can be apportioned wherever the accountants see fit.
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Well QF int is fairly protected - QF domestic on the other hand? I don't know all the legal ins and outs of the QF sale act but I don't like the look of it. Emirates in the picture? I doubt they would join up with QF but if so QF would be throwing a hell of a lot of $$ to get in on it. Good luck to all my red rats. If we can get rid of the red rat running our country maybe we can make the leader of the red rat disappear? Here's hoping!
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@ButFli
If the International arm of QANTAS goes bust and no longer a viable entity, it will be allowed to drop off the radar and J* will step into its shoes and become the international carrier for QANTAS Domestic.
Unless the QANTAS Sales Act 1992 has been ammended to prevent the sale of subsidiary companies in the QANTAS Group, there is nothing to stop J* International being sold off for a tidy sum, much in the same way the Keating government bundled Australian Airlines and QANTAS together in 1993 so they could be sold as a domestic/international carrier of which BA owned 25% when the shares listed in 1995.
It is my understanding that neither of the Qantases could be more than 49% foreign owned because of the Qantas Sale Act. It would not be possible for Qantas to pull a Virgin and sell of the domestic operation.
Unless the QANTAS Sales Act 1992 has been ammended to prevent the sale of subsidiary companies in the QANTAS Group, there is nothing to stop J* International being sold off for a tidy sum, much in the same way the Keating government bundled Australian Airlines and QANTAS together in 1993 so they could be sold as a domestic/international carrier of which BA owned 25% when the shares listed in 1995.
Some senior management have gone over to Europe (I believe Amsterdam). Could they be looking at some sort of merger with a European carrier such as KLM? Is this why Q recently shed capacity into Europe?
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[ QUOTE ] No. Bankrupt International, and have J* become the international carrier for QANTAS Domestic. [ /QUOTE ]
From a fly on the wall, that is the plan. The lure of sacking half the Groups staff and replacing them by employees on lower wages and conditions is just too lucrative for any board to pass up. Step one was spruik International as dead weight for the Qantas Group. Spend nearly a year on media releases touting International as a negative $200 million chain around the groups neck. Lots of spin claiming International had nothing to do with the $500 million profit from domestic, FF, cargo, Jetstar, etc. Carefully hide much of Jetstars costs so they appear on the International negative balance sheet. Step two commenced today. Isolate International from the Qantas Group. Step 3 will be the bankruptcy declaration of the now stand alone International arm. Domestic, FF, cargo, of course need an international feed to be profitable, despite said spin above, but will still be fed via implementation of step 4, all international serviced by Jetstar 787's and A330's. Lot's of backslapping going on in the board room congratulating each other on being masters of the universe over the clueless government and general public.
From a fly on the wall, that is the plan. The lure of sacking half the Groups staff and replacing them by employees on lower wages and conditions is just too lucrative for any board to pass up. Step one was spruik International as dead weight for the Qantas Group. Spend nearly a year on media releases touting International as a negative $200 million chain around the groups neck. Lots of spin claiming International had nothing to do with the $500 million profit from domestic, FF, cargo, Jetstar, etc. Carefully hide much of Jetstars costs so they appear on the International negative balance sheet. Step two commenced today. Isolate International from the Qantas Group. Step 3 will be the bankruptcy declaration of the now stand alone International arm. Domestic, FF, cargo, of course need an international feed to be profitable, despite said spin above, but will still be fed via implementation of step 4, all international serviced by Jetstar 787's and A330's. Lot's of backslapping going on in the board room congratulating each other on being masters of the universe over the clueless government and general public.
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I think Bruce was fired. I note that JQ SINPEK has been reduced to 5 weekly from next week (no service on Monday and Wed. Seriously, no service on Monday when most people choose to travel at the start of the week?)
They are doing massive promotions ex SIN - SGD298 one way for Business Class, or SGD587 return in Business Class from Jun through to Sep. Just go and pick a random date on the website.
With SINAKL down to three weekly in June, (I've no idea how SINMEL is doing but SQ does 3 daily, EK daily and QF daily so there's plenty of capacity on that route), is Jetstar's longhaul business ex SIN actually making the Group *any* money?
They are doing massive promotions ex SIN - SGD298 one way for Business Class, or SGD587 return in Business Class from Jun through to Sep. Just go and pick a random date on the website.
With SINAKL down to three weekly in June, (I've no idea how SINMEL is doing but SQ does 3 daily, EK daily and QF daily so there's plenty of capacity on that route), is Jetstar's longhaul business ex SIN actually making the Group *any* money?
Long Haul LCC has very little real cost savings and when you are charging a fraction of full service carriers its clearly making a loss. Watch this space. They have been hiding the real truth and now little boy is running whilst he can
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Long Haul LCC has very little real cost savings
On a different note, why is it that Joyce reminds me of Galtieri?
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Why is Bruce leaving? Could it be that:
1. The longhaul Jetstar services out of SIN are a failure? SIN-AKL is down to 3 weekly now from daily, and SQ is merrily still flying double daily to AKL and daily to CHC, despite earthquakes and what not? JQ's SIN-PEK fares are ridiculously low - SGD298 for business class one way these days, SGD220 for economy class. Definitely not making any money.
2. Jetstar Hong Kong has failed, and they need to find a scapegoat before announcing its failure
3. Keeping him as a consultant means that he won't run screaming to the press and/or join a competitor within the next 2 years
1. The longhaul Jetstar services out of SIN are a failure? SIN-AKL is down to 3 weekly now from daily, and SQ is merrily still flying double daily to AKL and daily to CHC, despite earthquakes and what not? JQ's SIN-PEK fares are ridiculously low - SGD298 for business class one way these days, SGD220 for economy class. Definitely not making any money.
2. Jetstar Hong Kong has failed, and they need to find a scapegoat before announcing its failure
3. Keeping him as a consultant means that he won't run screaming to the press and/or join a competitor within the next 2 years
Just another way QANTAS can say they have revisited the B787 strategy and now will assign all 787's to Domestic Business.
For Jetstar, 787's are only a 2% savings on an A330 but at a cost of $180M.. but for Domestic its about 18% compared to a 767-300 and a trump over virgin to boot.I think they will then say QF Int is a loss, and we will be forced to shut it down because commercially it is a lost cause.... In comes the government to help "International only" as it MUST keep an international flag carrier, and JetStar isn't one... no matter what anyone says.
No Alan doesn't want to be Australia's first CCEO. He is following business 101 from your average off shelf MBA.
That is place another layer of management below you so **** never floats to the surface.
From 10 years of bad decisions the various group CEOs will face the bone while the lattee and fruit cake club continue their plans for pan asian fiscal reward and deunionisation.
That is place another layer of management below you so **** never floats to the surface.
From 10 years of bad decisions the various group CEOs will face the bone while the lattee and fruit cake club continue their plans for pan asian fiscal reward and deunionisation.
From todays SMH
Read more: Buchanan smooths out the wrinkles
At least we know what Bruce Buchanan, the head of the Qantas offshoot Jetstar, might be celebrating with when he steps down from the airline later this year: a glass of wine and a tube of cream.
The Marrickville skin cream company Vanessa Megan rushed out an announcement yesterday that it had lured ''one of the youngest and most revered CEOs in Australia'', following the news that Buchanan had resigned from Jetstar.
The former management consultant, already known for his interest in skincare products, explained: ''I have used the product over the last 12 months and have fallen in love with the product and brand.
''When I drink wine [a hazard of building a business involving many partners] I can react with a rash around my eyes, which I used to treat with a steroid cream - I have now happily replaced this with the natural eye cream from Vanessa Megan.''
Buchanan said he was ''excited to be able to help another business … realise its potential throughout Asia''
FROM THE PILOT
The chief executive of Qantas, Alan Joyce, said there was nothing he could do to sway Buchanan from the pull of the skin cream sector.
''It is absolutely a case of Bruce deciding to go,'' Joyce said in a phone hook-up. ''He is an entrepreneur at heart. He is launching a cosmetic range in Asia as part of this, and that is not a joke.''
Joyce continued: ''Bruce is very much on the establishment and doing the deals to get these going. We need to now pause … and now deliver on the growth potential that is there. That doesn't interest him as much.''
Joyce said Qantas would not be putting Vanessa Megan skincare products on the planes, although if ''you put it on Jetstar planes, I'm sure they will charge you a margin for it as well''.
Read more: Buchanan smooths out the wrinkles
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To much to be sure.
This is just too much! I can't stop laughing at this abysmal farce and circus act.
Boston Bruce commenting about wine and eye rashes reminds me of the Sydney mardi gras!
And as for BB being Australias youngest most revered CEO's that has got to be the joke of the year!! Seriously this is some really funny sh#t!
What's next??
Withless endorsing anger management companies?
The board member General endorsing weight loss companies?
Elaine endorsing neck liposuction?
What an embarresment! I am sure all the comedy capers will go a long way to
making QF appear to be a tangible business opportunity in China, NOT.
Perhaps this Xmas there will be facial packs for everybody? I can imagine all the Engineers in the hangars maintaining a Roller or changing a brake assembly while applying Boston Le Creme and comparing skin blemishes!
Boston Bruce commenting about wine and eye rashes reminds me of the Sydney mardi gras!
And as for BB being Australias youngest most revered CEO's that has got to be the joke of the year!! Seriously this is some really funny sh#t!
What's next??
Withless endorsing anger management companies?
The board member General endorsing weight loss companies?
Elaine endorsing neck liposuction?
What an embarresment! I am sure all the comedy capers will go a long way to
making QF appear to be a tangible business opportunity in China, NOT.
Perhaps this Xmas there will be facial packs for everybody? I can imagine all the Engineers in the hangars maintaining a Roller or changing a brake assembly while applying Boston Le Creme and comparing skin blemishes!
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Good to read that the new Jetstar CEO, not sure how to say the name, has had extensive experience at another Low Cost Carrier called Woolworths prior to joining Qantas in Aug.2010.
Not sure what they fly but guess it must be a similar operation to a company operating Airbus so all should be well !
Not sure what they fly but guess it must be a similar operation to a company operating Airbus so all should be well !
Last edited by point76; 23rd May 2012 at 03:36.
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A lot of suggestions that QF Int is the target for sale, but if it's not making money, then who wants to buy it? Whoever does buy it then has to dispose of the A380's. Doesn't make sense to me. I guess it could be bankrupted and assets sold, but that tarnishes management reputations with investors (and future job opportunities) and I can't see the C crowd disrupting investor confidence.
QF Dom? If it's made to be profitable, then that would be the area that would be attractive to investors and other international airlines. Essentially, the value simply relates back to a multiple of the annual profit. Bump up the profit and the value jumps as well.
I'm just speculating...
QF Dom? If it's made to be profitable, then that would be the area that would be attractive to investors and other international airlines. Essentially, the value simply relates back to a multiple of the annual profit. Bump up the profit and the value jumps as well.
I'm just speculating...
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767...99% domestically operated and by all accounts from on high, doing its fair share bringing in the profits for domestic ops. Or, being on the LH award, is it therefore part of the pox that is QF International? Who will they answer to come July? And the 787? You can bet your arse the 78', if it ever comes, won't be anywhere near legacy LH rates. So, who's banner will it come under?
600ft makes a good point. Who'll pay for, and who'll get what? Who'll pay the fuel bill when a 330 goes to PER? Who'll pay the guys and girls on the ground? Who'll pay for the tug? (Is it expensive? I wouldn't know.
) Who's going to pay for the real estate when QF international moves to T2/T3? How much capital belongs to International? How will the cash reserves be divvied up, assuming there's any left after the new CEO positions. Speaking of which, were any of the 600 odd engies who have just been told to piss off, invited to be interviewed for these new positions?
You can bet your bottom dollar if JQ was bleeding money as bad as QF International allegedly is, they wouldn't cut it loose and make it fend for itself like they're doing to QF int. Oh, hang on, sorry I forgot, JQ does pay its own bills.
....bul(cough)hit!
It's just the next stage of the grand plan. Domestic cost base isn't so bad. So sell or fold QF international, along with it's legacy awards. Then if need be, start it up later with the new, significantly lower market rates. "Ahh, it's all coming along so swimmingly. Yes thanks, Dicko, I will have another!"
600ft makes a good point. Who'll pay for, and who'll get what? Who'll pay the fuel bill when a 330 goes to PER? Who'll pay the guys and girls on the ground? Who'll pay for the tug? (Is it expensive? I wouldn't know.
) Who's going to pay for the real estate when QF international moves to T2/T3? How much capital belongs to International? How will the cash reserves be divvied up, assuming there's any left after the new CEO positions. Speaking of which, were any of the 600 odd engies who have just been told to piss off, invited to be interviewed for these new positions? You can bet your bottom dollar if JQ was bleeding money as bad as QF International allegedly is, they wouldn't cut it loose and make it fend for itself like they're doing to QF int. Oh, hang on, sorry I forgot, JQ does pay its own bills.
....bul(cough)hit!
It's just the next stage of the grand plan. Domestic cost base isn't so bad. So sell or fold QF international, along with it's legacy awards. Then if need be, start it up later with the new, significantly lower market rates. "Ahh, it's all coming along so swimmingly. Yes thanks, Dicko, I will have another!"
Last edited by 2Plus; 23rd May 2012 at 04:20.