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

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

Old 19th May 2014, 01:39
  #4201 (permalink)  
 
Join Date: Apr 2009
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Fruet Mich, http://www.pprune.org/8482362-post4327.html hit the nail on the head a couple a days back with this post, and well said Sunfish...

I think Ben Sandilands hit a nerve yesterday on another front which is a must read,

Jetstar's NZ fail might mean more than gold for others | Plane Talking

and a back up what Sunfish has been saying for a long time now... just check the replies from the usual suspects defending AJ's J* dream which is slowly killing the Qantas brand, a view I have held for a long time now..

BA puts its budget airline Go up for sale - Business News - Business - The Independent

Seen it all before...


Some interesting reply snippets to Ben's story.. in fact, all of the replies interesting....

There are rumours circulating that things are grim in Singapore from pilots flying around Asia. A couple of years ago Jetstar Asia was being propped up by Jetstar in Australia to the tune of 20 million per year. Anecdotal evidence suggests the new Jetstar 787 service from Brisbane to Bali is bleeding big time with sub 100 passenger loads being the norm.
“Fewer than 1 per cent of Qantas’s shares are owned by individual Australians. More than 90 per cent of Qantas’s shares are owned by investment funds.”
It appears the business cycle has turned against the J* off-shore ventures in all the markets propped up by Q.. something has got to give soon, it can't keep going the way it is, that's for sure..

.
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Old 19th May 2014, 01:55
  #4202 (permalink)  
 
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There are rumours circulating that things are grim in Singapore from pilots flying around Asia. A couple of years ago Jetstar Asia was being propped up by Jetstar in Australia to the tune of 20 million per year. Anecdotal evidence suggests the new Jetstar 787 service from Brisbane to Bali is bleeding big time with sub 100 passenger loads being the norm.
Interesting. I have always doubted that this would work. The market before they started BNEDPS was VA with ~10 weekly 737 & GA just starting up with a daily 737. Assume 150 seats max (I'd imagine this sector would have load limits for a 737??), JQ comes along with a 787 that seats ~330 and totally floods the market.

As well, the nature of the market most likely means that they wouldn't pay more for a 787.
Big brother QF on the other hand has clapped out 744 and 333 aircraft on the HKG/SIN runs and anecdotal evidence suggests that loads are hurting..
Imagine where QF would be if they were marketing these brand new 787s in mainline colours against SQ and CX.. to a market who is prepared to pay a price premium for service, safety and new aircraft.
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Old 19th May 2014, 02:38
  #4203 (permalink)  
 
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Once the product differentiation was gone, there was less a motivation for pax to choose QF.
Got it in one... now witness the same destruction that was imposed on international now applying to domestic.

Step 1. Take away your point of difference unknowingly#(see fleet being restructured to 737 & A330 domestically)

Step 2. As customer numbers drop add capacity(in the form of J*) to stop the bleeding customer numbers and % market share.

Step 3. Blame staff for being overpaid and uncompetitive.

Step 4. Reduce QF services and keep J* services because you really have no idea what to do.



# unknowingly; because these morons really have no idea. I can tell that straight away when they open their mouths
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Old 19th May 2014, 02:44
  #4204 (permalink)  
 
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For all the reasons above and more, gifting the 787s to J* instead of using them to support the premium mainline international product must go down as one of the least intelligent decisions ever.

Oh wait, there's actually huge competition at Coward St for the least intelligent decision competition, I forgot.
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Old 19th May 2014, 04:47
  #4205 (permalink)  
 
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All that was lost with the Thai cabin crew.

What made QF different was brand Australia & the morons running the joint thought they could 'copy' that with cheap Thai labour.

Once the product differentiation was gone, there was less a motivation for pax to choose QF.
That's exactly right MC.

My little story along the same line..... a few years ago, london to singapore on the famous QF kangaroo route, got talking to the customer service manager who was london based. I was explaining where I lived by reference to well known spots like manly beach but the CSM said she didn't know where that was, surprised I asked her what places she did know in Sydney....her answer was none as she had never been to Sydney or indeed Australia.

Turns out there was not one aussie cabin crew on board and most had never been to oz.
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Old 19th May 2014, 04:59
  #4206 (permalink)  
 
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I was having a cleanup on the weekend and came across the book,
The Longest Hop
Celebrating 50 Years of the QANTAS Kangaroo Route
1947 – 1997

After reading the above comments re, JQ, the 787 etc, I went back to find what I thought was interesting. Interesting in regards to what you guys and girls at QF have today as leaders, I think you might find interesting.

from page 42:

Growing from the professional skills of McMaster, Fysh and McGinness was an experience in aircraft evaluation and an ability to understand and take advantage of the huge changes emanating from aviation technology after World War II. In many ways this defined the airline: being able to assess rival aircraft's designs and choosing the equipment most closely matched to the needs of Qantas while delivering safety, reliability and the resulting commercial success. This era that began with the selection of the Constellation ran through the choice of Boeing jets in the 1950s and the 747 family in the early 1970s. It drove home to Qantas that aircraft evaluation and the correct choice, regardless of political and other pressures that were so often brought to bear, were the key to success.

It was no accident that this clutch of professional skills, bringing together airmanship, engineering and hard-nosed commercial instincts, was to yield three future senior executives of Qantas: Captain ‘Scotty’ Allan, a deputy chief executive, Captain Bert Ritchie, a chief executive and Ron Yates, the first Australian graduate engineer to join the airline after the war, who succeeded Ritchie. They headed a strong and aggressive management team which developed from the earlier succession of the founder, (Sir) Hudson Fysh, to the chairmanship and the emergence of C O (later Sir Cedric) Turner as managing director.
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Old 19th May 2014, 23:38
  #4207 (permalink)  
 
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Fruet Mich:

Qantas needs a change of direction at the top. Unfortunately, the management at Qantas strongly believe you can operate a low cost carrier in unison to your full cost carrier. It has been a total failure, no full cost/low cost airline has ever worked before, and is certainly never going to work here. You simply cannot expect your premium passenger to board a low cost carrier which has replaced your premium service. It's time to fall on his sword and except it was a gamble that just didn't pay off, lesson learnt, move on and rebuild with a new strategy before it's too late.
A very simple and currently insoluble problem: Who is going to bell the cat?

The past and current Board and Senoir managment invested in the Jetstar strategic direction. The current CEO is the architect of Jetstar and arguably knows nothing but low cost carrier tactics anyway.

The simple fact is that anyone in QF management who questions that strategic direction is going to be fired or at best marginalised.

This is "group think" at its worst, they do not want to hear, they do not want questions or heart searching.

What happens next is either the sale of assets like the frequent flyer scheme to keep the strategy alive a little longer, or Alan has to go.
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Old 20th May 2014, 00:24
  #4208 (permalink)  
 
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What happens next is either the sale of assets like the frequent flyer scheme to keep the strategy alive a little longer, or Alan has to go.
Asset sales like that are simply burning the furniture to stay warm

Alan has to go. When is "the market" going to understand that simple, cold-water reality?
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Old 20th May 2014, 00:55
  #4209 (permalink)  
 
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Well, we're all put our two cents worth on this many times and Joyce and Clifford are still there.
Believing fervently in what you do and how you do it is normally an admirable trait, but not when it results adversely for the company and it's employees. Offsetting the benefit of such a trait is the firm belief that nobody else can be right
The board, unfortunately, believes in these two and that they are right, and that they will be there to the end.
There is nothing that will change that except intervention by the shareholders or a takeover.

Perhaps some political influence will "shake the tree", but these guys have an iron grip on the branches.
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Old 20th May 2014, 01:13
  #4210 (permalink)  
 
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There are rumours circulating that things are grim in Singapore from pilots flying around Asia. A couple of years ago Jetstar Asia was being propped up by Jetstar in Australia to the tune of 20 million per year. Anecdotal evidence suggests the new Jetstar 787 service from Brisbane to Bali is bleeding big time with sub 100 passenger loads being the norm.
My wife showed me a competition on facebook being run by that organisation. It was to win free credit by posting your favourite holiday photo.

I did not see one holiday photo in the posts that I read, just angry holidayers bagging out the company and vowing never to fly them again.

I would personally prefer to fly full fare with another carrier to a few destinations given the options. I know many of my colleagues do as well. However I have heard a few say the 787 is a better travelling experience.

Maybe they should put a couple of QF A330's on the Bali run each week to test the waters.
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Old 20th May 2014, 01:34
  #4211 (permalink)  
 
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I wrote this on Ben's blog but thought it was pertinent to this one too. I've tidied up the spelling a little

"..........no matter how far above the clouds Flying High might be, unless he is able and willing to feed untold $M’s into QF coffers, then he might have egg on his face sooner than later.

He simply is an apologist for a company which, with AJ in shining armour and with his lady’s favour tied to his lance, is valiantly fighting its way through:

government red tape;
uneven playing fields;
the arrogance of the Hong Kong authorities for having laws;
the dastardly behaviour of Boeing/Airbus for not holding up to their end of the bargain to deliver on time;
the sheer arrogance of QF staff wanting a living wage; etc.

Oh, and the handing over of routes that were profitable or could have been profitable with some decent promotion to JQ and EK. Not everyone wants to sit with their legs under their chin or fly via the sandpit.

What’s to go wrong? Winning business plan there I would have thought, so of course QF will be profitable by about the end of the century! Move along folks, nothing to see here!"

Obviously its heavy with sarcasm but I truly fear for QF long term with this ******** (or an entire board of ********) in charge. I fear that the situation will eventually reach a momentum where confidence wanes, forward bookings decline and the airline goes into a metaphorical spin.

I've never had the skills or the health to be a pilot but I am a flying geek. I've flown QF internationally since the 70's and, since they took over TAA/Australian, domestically - all at my own expense so I'm not Platinum 1 (and thus not worthy of AJ's time) but I do consider myself a "loyal" customer, making many trips a year, and choosing QF over its competitors.

I now have fewer opportunities to do that since they have cut back so dramatically on their routes - I don't want to fly JQ to SIN or EK from DXB, even if I can land in such exotic places such as Newcastle, UK. (Sorry to any Scousers - I'm actually from not that far north of there myself and it is a much improved city in more recent times)

My opinion of AJ is unprintable but I do despair at where he is taking the airline.
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Old 20th May 2014, 01:46
  #4212 (permalink)  
 
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I now have fewer opportunities to do that since they have cut back so dramatically on their routes - I don't want to fly JQ to SIN or EK from DXB, even if I can land in such exotic places such as Newcastle, UK. (Sorry to any Scousers - I'm actually from not that far north of there myself and it is a much improved city in more recent times)
Pardon my pedantry, it is an affliction. Scousers hail from Liverpool, a fine city in NorthWest England famous as the home of the first British Boy Band.

Residents of Newcastle, UK, a city in North East England (actually, practically in South East Scotland) usually refer to themselves, somewhat unintelligibly, as Geordies. Like the Scots, you have to read the subtitles.
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Old 20th May 2014, 03:13
  #4213 (permalink)  
 
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VH-Cheer Up

I prostrate myself. (Almost wrote prostate - that would have sent your pedantry-meter sky high Of course Scousers are from Liverpool and Geordies from Newcastle. I knew that. (I'm from Fife, Scotland originally myself!!!)

I can only put it down to my irritation with AJ and a temporary hit of high blood pressure..
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Old 20th May 2014, 07:15
  #4214 (permalink)  
 
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Originally Posted by AEROMEDIC View Post
The board, unfortunately, believes in these two and that they are right, and that they will be there to the end.
Seems they will be both be there to the strategically orchestrated end which could be very close indeed.
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Old 20th May 2014, 08:48
  #4215 (permalink)  
 
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As a crew member on one of the soon-to-be-retired fleets I am very certain that the greatest threat to my job is not being made eventually redundant by a process of reduction in numbers. It is waking up one morning, not too far into the future, to the news that Qantas has failed. There will be no explicit warning, the unbridled BS will continue right up to the point of business failure.
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Old 21st May 2014, 01:24
  #4216 (permalink)  
 
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It looks like the war may be over:

Qantas puts freeze on domestic growth
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Old 21st May 2014, 01:29
  #4217 (permalink)  
 
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Virgin battle breaking Qantas' domestic strategy

Has Eileen finally capitulated?
Has the board finally seen the light?
Can we all start looking forward to an industry that isn't self destructing?
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Old 21st May 2014, 01:50
  #4218 (permalink)  
 
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Has Eileen finally capitulated?
Has the board finally seen the light?
Can we all start looking forward to an industry that isn't self destructing?
I don't know that this is the end of the war but it is definitely the beginning of the end.

Finally, it appears that someone has woken up that the S-curve needs to go down the s-bend. It was always dubious economics based on a decades old theory that pre-dated LCCs.

The money that QF has wasted in this exercise has been staggering. I have long believed that allowing the market to settle as a cosy duopoly wth QF having between 50 and 55% market share will generate huge profits for both QF and VA. Chasing a market that doesn't exist with wasted capacity has been madness. A decent board would make the CEO and his cronies walk the plank.
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Old 21st May 2014, 02:08
  #4219 (permalink)  
 
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To be honest, I am sick to death of these Ben Sandiland articles. I dont know his background by he does seem to have a bit of a bias against Qantas. He used to have quite informative articles but has recently morphed into a ranting fool. His dribble written about Jetstar NZ and Air New Zealand is a total load of tosh. If he had done any research he would have found out that instead of his stated 'Air NZ has been able to charge more' they have infact overall reduced their fares significantly in response to Jetstar's pricing structure. This article was about how 'BUSINESS' traveler's still prefer to use Air NZ and are willing to pay more to do so. I don't see why this would be of any surprise to anyone. Air NZ has more frequency, lounges etc which is more attractive to a business person. Despite this Jetstar NZ still attracts around 20% of its custom from business customers which is better than most low cost carriers. He states that Jetstar NZ struggles to fill seats at $100, why then are its load factors in the the 80's, better than Air NZ. He takes a swipe at the checkin agent who 'decked' the radio host without pointing out that it was in fact the radio host that assaulted a female member of staff and the result was another staff member putting a swift end to that situation. The radio host court case was thrown out and in fact he was charged by the police. Come on BEN, don't twist the facts to meet your own self serving anti Qantas agenda, you are quickly losing all credibility you built up with some very good reporting in the past when you stuck to the facts.
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Old 21st May 2014, 11:40
  #4220 (permalink)  
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65% line in the sand gone

Online news websites tonight are reporting "Qantas blinks first in Virgin capacity battle, with domestic capactity freeze".


Quoting from the Age:

The airline on Wednesday told investors total domestic capacity growth, including Qantas, QantasLink and Jetstar, would be ''zero in each of the first three months of financial year 2015 compared with the prior corresponding period''.

Read more: Qantas blinks first in Virgin battle, with domestic capacity freeze
As well as this, the article indicates that the word 'total' is key - and so mainline may sink at the cost of J*.

A variety of comment pieces about AJs foolish war and capitulation marks another PR success......
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