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MERGED: Alan's still not happy......

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MERGED: Alan's still not happy......

Old 12th Mar 2014, 05:07
  #3321 (permalink)  
 
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Post J* Sin closure imminent??

A source advises an announcement imminent.....
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Old 12th Mar 2014, 05:14
  #3322 (permalink)  
 
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If true ....... Think of all the operational flexibility all the extra parked 320s (and 330's ? ) will provide...

What foresight!!

Bonuses all round !
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Old 12th Mar 2014, 05:37
  #3323 (permalink)  
 
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Wasn't Andrew David running Singapore and the International widebodies?

Was he replaced?
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Old 12th Mar 2014, 06:03
  #3324 (permalink)  

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Singleton got it exactly right.

We can't beat them on wages but we can level the playing field to get the revenue back into focus.

And he should be Chairman.
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Old 12th Mar 2014, 06:39
  #3325 (permalink)  
 
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The question may no longer be whether it is Jetstar or Qantas that can achieve a profit in Southeast Asia. Instead, it is a balance of which brand generates the lowest loss or highest prestige.
Qantas-Jetstar and SIA-Scoot dual-brand strategies challenged by SE Asia-Australia over-capacity | CAPA - Centre for Aviation

Interesting load factor charts over the last two years to Indonesia, Thailand & Singapore.

MC
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Old 12th Mar 2014, 07:00
  #3326 (permalink)  
 
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What a great advertisement by mojo.
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Old 12th Mar 2014, 08:37
  #3327 (permalink)  
 
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Singleton got it exactly right.

We can't beat them on wages but we can level the playing field to get the revenue back into focus.

And he should be Chairman.
Agree with gaunty, a pretty powerful interview from Singo at the time..

For those who couldn't get this AFR link interview posted by MC with Leigh "I wouldn't be doing this if it wasn't fun" Clifford, a reaction related to the John Singleton video a few months later.



sorry, the best I could do, it's a little out of sink,

.
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Old 12th Mar 2014, 09:24
  #3328 (permalink)  
 
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Smile

Wasn't Andrew David running Singapore and the International widebodies?

Was he replaced?
When JB joined VA he sacked Andrew David.

When VA took a majority stake in Tiger, JB sacked Andrew David again

I wonder if he'll be sacked by JB a third time?
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Old 12th Mar 2014, 09:39
  #3329 (permalink)  
 
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Thanks for the video TIMA9X.
Interesting viewing, although LC didn't need to tell us he doesn't know much about airlines, that's pretty obvious.
The best he can come up with is trying to get in on the FIFO business!!
Someone around the table should thank him for his valuable insight, then politely let him know that airlines have been cashing in on mining towns since Lasseter went bush.
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Old 12th Mar 2014, 09:46
  #3330 (permalink)  
 
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Clifford Vid says so much..

Hard to quote but basicly Clifford's answer to his Board Management style at Q-

I've come to the airline industry with only a pax perspective (first class) and over the last 5ys learned so much about the industry...

Cliff mate, glad you got paid to get a lesson in Aviation (miss) Management. Take your conceded pass mark (just for turning up to each class) and go look for another course in retirement, possibly in Buddhism to see what Karma is coming your way.

FFRATS
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Old 12th Mar 2014, 12:47
  #3331 (permalink)  
 
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........and I thought that Joyces's brainstorming methodology was to surround himself with people who are good at what they do and have greater knowledge. After watching this video, Clifford is a guy well out of his depth and has neither of these attributes yet is the Chairman.
Have Joyce and the board shuffled Clifford out of the way to become a figurehead or does he genuinely take part in the decision making?

Nice video though TIMA9X.
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Old 12th Mar 2014, 14:00
  #3332 (permalink)  

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TIMA9X

Thanks for the vid.

I woudn't hang him on the strength of that interview.

He is doing what a Chairman should do. Standing back and watching the big picture and casting around the business world at large for feedback.

Maybe a chat With the CEO every cuppla weeks worked in the mining business, where it takes that long between mine and furnace but the aviation world works in real time.

I'm surprised that he and maybe Joist , were surprised at the size of the loss but it is possible that it was, a surprise to Clifford at least. Maybe not that there would be a loss, but the size of it.

It wouldn't be he first time a CEO has ambushed a Board with this sort of result hoping to the end it would all work out at the end.

So what can the Board do without further frightening the horses = share price and more importantly further demoralizing the staff.

Changing horses on the run is more likely to result in an even bigger train smash.

OR

Keep Joist in the traces and force him to fix his frck ups under riding instructions from the Board who represent the owners.

There is of course only 2 possible results.

He finally gets it and fixes it, by harnessing the huge depth of goodwill the staff and market have towards the QF brand.

Or the Board eventually
falls into the hands of Singo and his mates, which may not be such a bad thing.

Virgin and QF need each other to keep the market stimulated. There are plenty of really smart people in Virgin who could step into Borghetti's shoes.

One wonders how much and on what terms it would take Singo and his mates to get Borghetti to head up QF.

Just sayin.
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Old 12th Mar 2014, 14:09
  #3333 (permalink)  
 
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That's easy...

An apology, and Joyce's highest total package +x %. I'd say x=10 at a minimum.
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Old 12th Mar 2014, 14:24
  #3334 (permalink)  
 
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To Ratpoison:

Sorry, what's your point?

Do you pay more than you have to when it comes to telephone, gas, electricity or petrol?

A lot of criticism of management here which is ironic given your solution is to increase airfares.

Underlying problem is QA airfares are already too expensive. Especially when you can fly to same destination at a similar time and pay less.

This problem isn't going to sort itself out until current QA workforce realise that good old days are over. Customers are already comparing QA to ME & Asian airlines. They're cheaper, offer comparable cabin service and (sorry to say) have similar safety and maintenance records. Therefore, to trade out of this position QA need to reduce costs and airfares.

Best way of achieving this is for all staff to reduce wages (more to the point - allowances, penalties & constant threat of industrial action).

This is a controversial point but here goes, current union leadership don't seem to want to protect long term employment. I make this assumption as I cannot think of 1 unionized occupation (not including government) in this country whose future is secure. It begs the question why would one continue paying union fees when the actions of your leadership are increasing the chances of redundancy.

Thanks.

Last edited by Ric_god; 12th Mar 2014 at 14:31. Reason: Include username of original post.
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Old 12th Mar 2014, 14:56
  #3335 (permalink)  
 
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This is a controversial point but here goes, current union leadership don't seem to want to protect long term employment. I make this assumption as I cannot think of 1 unionized occupation (not including government) in this country whose future is secure. It begs the question why would one continue paying union fees when the actions of your leadership are increasing the chances of redundancy.
Maybe this is because the government and major business leaders seem more determined to smash unions than run secure profitable companies.

I seem to remember Alan grounding the fleet at an enormous expense to the business after months of no negotiations with the unions. The media demonised all of the unions involved, and then Qantas negotiated and gave the unions most of what they were asking for. Had management turned up to the enterprise agreement meetings and negotiated rather than stonewalling, and used their time to run the business as they should, things would be very different today.

Ric_god, your comment shows just how effective Qantas's and the governments campaign against the unions in the media has been. At the end of the day, the union is the workers as a group, and if you think they all want to do themselves out of a job, you are kidding yourself.
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Old 12th Mar 2014, 16:48
  #3336 (permalink)  
 
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Maybe Andrew David didn't fit the nepotism mould, ex mate or ex QF buddy of JB, hence got the flick (or walked)? Having met him a couple of times, I found him the friendliest most approachable Manager I've ever met, you could do well worse.
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Old 12th Mar 2014, 17:43
  #3337 (permalink)  
 
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Question

So what can the Board do without further frightening the horses = share price and more importantly further demoralizing the staff.

Changing horses on the run is more likely to result in an even bigger train smash.

OR

Keep Joist in the traces and force him to fix his frck ups under riding instructions from the Board who represent the owners.

There is of course only 2 possible results.

He finally gets it and fixes it, by harnessing the huge depth of goodwill the staff and market have towards the QF brand.

Or the Board eventually
falls into the hands of Singo and his mates, which may not be such a bad thing.

Virgin and QF need each other to keep the market stimulated.
I think gaunty puts it well, exactly where I think the gameplay is at.. AJ is now focusing on domestic, but I have a slightly different take on the outcome.. I think AJ wants to destroy JB and Virgin... to get himself out of the hole he put himself in with Jetstar Asia.. none of this is good for Qantas International which seems to always be forgotten..

I received this email from a good friend in the industry in response to the AFR Clifford interview above.. I felt it was good enough to share on here (with permission from the writer.)

Hi Tim,
Finally, I have a coherent working thesis in my mind for the events of the last couple of months.

In a nutshell, AJ needs to kill Virgin.

Why? The 110 A320's to be delivered by 2020.

Asia hasn't worked, they are still committed to the A/C, so the only option is to deploy them somewhere else (or take a huge hit on crystallizing non-delivery losses). Where to deploy them? Simple, domestically.

This is why they wanted the debt guarantee, and the wage freeze. This enables him to sustain the capacity war as a Virgin killer.. He has also said they will add 4~6% capacity this year, and fares are already ridiculously low and falling.

The only logic that make sense is this is not just about hurting your competitor, but eliminating him. This will give him 100% in the short run, and allow delivery of almost all aircraft without penalty.

Basically, it is his last throw of the dice, almost a binary outcome, where because of the A320 orders, Virgin has to die in order for QF to survive. Unless the capacity war kills Qantas first.
I'm first to put my hand up to say I don't understand the contractual arrangements when aircraft are purchased by airlines, so my first question in response to my friends email was... Is the Qantas group forced to take delivery of these airframes by 2020? And if Qantas doesn't take delivery of these airframes, what are the penalties and how much would it hit the Qantas group bottom line?

As I see it, the Qantas domestic fleet is relatively young, so I don't see the need for it to be changed for a new Airbus fleet which would be in J* configurations yes / no???

Finally, if AJ was serious about transforming Q Int, couldn't he rearrange the Airbus orders for some A330/50s as a quick fix to replacing airframes urgently required for International to expand again?

Surely AJ should be focused on all of the Qantas group and not his ego war with Virgin and lovechild J*?

It wouldn't be he first time a CEO has ambushed a Board with this sort of result hoping to the end it would all work out at the end.
Well said gaunty, appears so.. but people forget, AJ is a member of this board

http://www.qantas.com.au/travel/airl...tors/global/en

Meanwhile, in other parts of the world things are looking up

Global airlines on profit high

.
.

Last edited by TIMA9X; 13th Mar 2014 at 01:53. Reason: add link
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Old 12th Mar 2014, 22:47
  #3338 (permalink)  
 
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Gaunty:

I woudn't hang him on the strength of that interview.

He is doing what a Chairman should do. Standing back and watching the big picture and casting around the business world at large for feedback.

Maybe a chat With the CEO every cuppla weeks worked in the mining business, where it takes that long between mine and furnace but the aviation world works in real time.

I'm surprised that he and maybe Joist , were surprised at the size of the loss but it is possible that it was, a surprise to Clifford at least. Maybe not that there would be a loss, but the size of it.

It wouldn't be he first time a CEO has ambushed a Board with this sort of result hoping to the end it would all work out at the end.

So what can the Board do without further frightening the horses = share price and more importantly further demoralizing the staff.

Changing horses on the run is more likely to result in an even bigger train smash.

OR

Keep Joist in the traces and force him to fix his frck ups under riding instructions from the Board who represent the owners.

There is of course only 2 possible results.

He finally gets it and fixes it, by harnessing the huge depth of goodwill the staff and market have towards the QF brand.

Or the Board eventually
falls into the hands of Singo and his mates, which may not be such a bad thing.

Virgin and QF need each other to keep the market stimulated. There are plenty of really smart people in Virgin who could step into Borghetti's shoes.

One wonders how much and on what terms it would take Singo and his mates to get Borghetti to head up QF.

Just sayin.
Off the beam a little.

1. "Surprising" a Board, let alone a Chairman, is grounds for immediate termination of a CEO. This is something that you never, ever, do. The Boards motto is always "no surprises" because if they get surprised it implies straight away that the Directors have not been doing their jobs diligently, informing themselves of the business.

2. A CEO "Ambushing" the board of a public company is also a career terminating move. A Managing Director might try it - if he has the necessary shareholding behind him but as a general rule you are asking for a lawsuit. A CEO of a private company who is a rainmaker generating profits, thats a different matter. Again the Directors of a public company are required to be diligent in knowing and understanding the business, or else.

3. The Board doesn't get to issue "riding instructions" to anyone. Thats not its function at all. The Boards job is to hire and fire the CEO. The CEO issues instructions. The Board either accepts his strategy or fires him.

4. Joyce cannot, by definition, "fix" Qantas, he is part of the problem, not the solution and so is the Board. To put that another way, the people that got Qantas to this low point are not the people who an lead Qantas out of it.

5, Singleton and the APA Boyze getting control of Qantas???? Mate! Think of the money was can make! The first thing we can do is shake down every tourism region in the country and every State government. Do you know what happened to Sunshine Coast land values when QF terminated its services and replaced them with Jetstar?

Then of course we can asset strip, restructure and refloat the business with a complete new marketing plan and competent management instead of the current clowns.

Qantas can make a very, very nice return on investment for a new owner - provided the current bunch of managers deliver it at a low enough purchase price.
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Old 13th Mar 2014, 06:02
  #3339 (permalink)  
 
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TIMA9X

"The Qantas fleet is relatively young" lol.

Still running around with ancient 767s - albeit will be partially replaced by some of the A330s coming back from JQ but they are mostly 747 replacements.

Even on the golden triangle the original post 9/11 738s that got taken from AA are now 12 years old (and there were lots delivered in 2002 and 2003) - would not be surprised to see A320s used to replace these over the next few years.
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Old 13th Mar 2014, 06:21
  #3340 (permalink)  
 
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"The Qantas fleet is relatively young" lol.
I guess you are right, but young compared to the forgotten Qantas International fleet, a bigger priority in my view..

anyway the weaker dollar will make aircraft purchases more expensive, and it won't save us..

http://www.smh.com.au/business/the-e...313-34omp.html
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