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

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

Old 25th May 2014, 13:18
  #4321 (permalink)  
 
Join Date: Jul 2006
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TL,

I would guess most of the 5000 job losses and associated redundancy payments would conclude by 2016.

It's my guess the Business Transformation process that started a few years ago was always figuring in massive job losses.

Hence, the inability of returning the business to profitability till 2016.
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Old 25th May 2014, 14:17
  #4322 (permalink)  
 
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And no doubt Joyce and Co will take part in a huge amount of backslapping come 2016 when/if they return to profitability!

"This was our plan all along"

Never mind the destruction of thousands of jobs and the airline's reputation in the meantime
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Old 25th May 2014, 16:00
  #4323 (permalink)  
 
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Meanwhile, this week it's... wait for it....

Qantas boss Leigh Clifford returns to rock 'n' roots at mining symposium



Is Qantas chairman Leigh Clifford missing his old mining industry haunts?
The former Rio Tinto boss is taking a walk down memory lane this week, giving the keynote speech at the Broken Hill Resources Investment Symposium.
CBD was not sure what attracted him to the affair until we saw the headline act that follows his John Collier Oration on Tuesday night.
Cold Chisel





Good to see he is out and about...


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Old 26th May 2014, 01:02
  #4324 (permalink)  
 
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Alan will be ecstatic with the VA April figures released this morning too!!
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Old 26th May 2014, 02:53
  #4325 (permalink)  
 
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Well Transition Layer, it was their plan all along. So what's your point?

Oh yeah, I get it. Keep losing money, do nothing, and then lose everybody's job!

for you too!

Last edited by Flying Tiger; 26th May 2014 at 08:56.
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Old 26th May 2014, 03:09
  #4326 (permalink)  
 
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You really have to wonder, is there that little talent outside that JH is seriously being considered as a contender for the title.

Agree with earlier - it's time to look externally but really let's face it without LC buggering off, it really will be more of the same.
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Old 26th May 2014, 03:15
  #4327 (permalink)  
 
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I think large-scale radical change at the top is what is required. Changing a few names and bringing in "talent" that has already been involved (infected) with implementing such faulty strategy in Asia begs the question about where the true change and dynamism will come from.

Heads must roll. And lots of them.

Otherwise, it's back to the old "Plus ca change, le plus c'est la mÍme chose".

...Or not?
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Old 26th May 2014, 04:27
  #4328 (permalink)  
 
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Alan will be ecstatic with the VA April figures released this morning too!!
The release of the figures came after Qantas said last week it would freeze domestic capacity in coming months, citing weak consumer confidence and a slowdown in the mining sector. The decision abandoned its strategy of maintaining its 65 per cent share with the airline's chief executive Alan Joyce saying he was comfortable with 63 per cent.
This is despite Qantas chief financial officer Gareth Evans saying in January that ''stepping back from the 65 per cent would effectively be waving the white flag''
And Macquarie analyst Sam Dobson said Qantas appeared to be losing market share, considering capacity across Virgin's entire group, with includes Tigerair rose 0.3 per cent, while its revenue grew 4.3 per cent.
You really have to wonder, is there that little talent outside that JH is seriously being considered as a contender for the title.
I think JH's appearance in the Australian was simply a promotion exercise to trump up J* in response to the virgin figures out today.. J* Asia has copped a lot of flake in the media not just locally but regionally. I don't think her track record has been good since she got the gig from BB..

Her aggressive nature (recent senate inquiries) doesn't help her and I also could not help feeling AJ was protecting her 4.40 into this video onwards as an example.. he is a champion at diverting attention and using up valuable time in these situations. To AJ's credit, I don't think JH has the talent to hold up or keeping her composure to hard questions from the media should a sticky situation arise..



What's clear for all to see now, AJ, JH, LC, GE, & the board have been on the wrong strategy which has hurt the whole Qantas group business.

agree 100% with ENT

it's time to look externally but really let's face it without LC buggering off, it really will be more of the same
Exactly where things are at now... he still has control....
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Old 26th May 2014, 05:27
  #4329 (permalink)  
 
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It's very Un-Australian that the three major UAE airlines have CEO's that are Australian and Qantas appoints... well, I'm sure we have our words to describe such a thing.


A new board is what Qantas needs and to poach one of the three CEOs over in the sand pit.
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Old 26th May 2014, 05:48
  #4330 (permalink)  
 
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Joe, only one of the big three has an Aussie as far as I know.
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Old 26th May 2014, 05:58
  #4331 (permalink)  
 
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Flying Tiger,

I'd argue that hundreds of millions have been wasted in the past 5 years on failed JQ ventures around Asia. Money that could have been spent on the mainline product, which in turn would have helped the bottom line.

Don't get me wrong, there is a huge amount of inefficiencies in QF and these are being addressed now. What I am suggesting is that the cuts wouldn't need to be nearly as severe had the big wigs kept their eye on the ball from the outset, rather than focusing their attention on Red Q, JQ HKG, JQ Japan etc etc.

I'd argue without the ball and chain affect of these ventures, QF wouldn't have to return anything to profitability...it would already be in the black.
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Old 26th May 2014, 08:20
  #4332 (permalink)  
 
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Why are there any "inefficiencies" left in Qantas? The business has been bleeding cash like a stuck pig for many years and the consultants have gone over it so many times that they must have worn furrows by now!

I refuse to believe that there exists a huge army of alleged "paper shufflers" still employed! They are the first things that should have been removed FFS!

To put it another way, how come the airline has been screaming about pilot and engineers working conditions and outsourcing same when there is apparently still a Five Thousand person bunch of low hanging fruit that hasn't been picked??????

Something's not right!
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Old 26th May 2014, 09:42
  #4333 (permalink)  
 
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Sunfish,
I agree with you totally regarding your last post.
Unfortunately you are wrong! : there are more "paper shufflers" there than workers and two or three levels of management that just don't need to be there.
The ONLY slightly good (relative term) thing I can say about our senior management is that they probably don't even know what is going on because of all the filtering these layers do.
When they do make someone redundant it is invariably the wrong people.
Qantas is stuffed, and it is senior management and the board over the last ten to fifteen years that have done it.

That said, the right management there for a while and it could be fixed.
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Old 26th May 2014, 09:53
  #4334 (permalink)  
 
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I remember a wise man once said to me that what needs to be done is 'shut down head office for two weeks, anyone who doesn't have a voicemail on the phone when it reopens should be sacked!'

Might be a good start.
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Old 26th May 2014, 09:57
  #4335 (permalink)  
 
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What's clear for all to see now, AJ, JH, LC, GE, & the board have been on the wrong strategy which has hurt the whole Qantas group business.

agree 100% with ENT

Quote:
it's time to look externally but really let's face it without LC buggering off, it really will be more of the same
Exactly where things are at now... he still has control....
The board holds the CEO accountable, but the shareholders hold the board accountable. Why aren't the instos arcing up about the present situation?
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Old 26th May 2014, 10:36
  #4336 (permalink)  
 
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Why aren't the instos arcing up about the present situation?
Perhaps they are just waiting for the next part of someone's plan to take place. In fact, so much so, they might be charged with "loitering with intent".
What that intent is, who knows....?
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Old 26th May 2014, 10:45
  #4337 (permalink)  
 
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Sunfish.

I think a clear indication of people trying to justify their existence is the recent staff memo on bathtub safety.

Flight crew were recently reminded of the correct technique to enter or exit a bathtub whilst overnighting at crew hotels. Including the importance of maintaining multiple contact points to avoid slipping.

MC.
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Old 26th May 2014, 11:23
  #4338 (permalink)  
 
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the shareholders hold the board accountable. Why aren't the instos arcing up about the present situation?
Back here again... this thread always seems to get stuck on this.. which has become the "one billion dollar question," why is it so? This issue was addressed in the mainstream media back in March after the half yearly losses were announced... which has died down again since, but I believe not forgotten.

Qantas investors must stop Alan Joyce and Leigh Clifford's Thelma and Louise act


We called for the sacking of Alan Joyce before it became fashionable, but the media campaign to dispose of him is still surprising.
CEOs are typically removed quietly, by ‘mutual agreement’.
Qantas Chairman Leigh Clifford’s op-ed for Fairfax Media on Saturday effectively shuts this option down.


Whilst a public letter of support for an embattled CEO is in itself unusual, Clifford’s article is more revealing for what it does not say, which is that he won’t be the person to push Joyce out.


Institutional shareholders, especially those at Franklin Resources, a global fund manager based in San Mateo, California, or their local office at 101 Collins Street, Melbourne, must be getting a little edgy.
It is the willingness of institutions like Franklin to continue to back a failing strategy that will determine whether Alan Joyce remains CEO and, ultimately, the airline’s future profitability.
My bet is, despite Clifford’s pleadings, they won’t tolerate it for too much longer.


Chief executive officers are hired and fired by the board. If Joyce is to be removed, it is only with the board’s say-so. What Clifford’s letter reveals is that the he and his CEO are travelling in lockstep, grasping at each other’s clothes as they lurch toward the cliff’s edge.
Last Thursday, Joyce recommitted Qantas to its 65 per cent market share ‘line in the sand’, the main cause of over-capacity in the domestic market and the principal reason for the huge fall in the airline’s domestic earnings.
Would Joyce have made that re-commitment without the board agreeing to it? Unlikely.


Same goes for the decision to channel funds to Jetstar Asia (now on hold), to hand over international passengers to Emirates and to close down the airline to help it win an industrial dispute. Joyce isn’t acting alone here.
If the board is to sack him, it can’t do so without implicating itself in the disaster.


Shareholders have two options to get the ball rolling. The first is for at least 100 shareholders, or investors owning a total of 5 per cent or more of voting stock, to write to the board telling it to call an extraordinary general meeting.


The letter must state any resolution to be put to the meeting and be signed by the shareholders requesting it. If these criteria are met, the board must call a meeting.
Public pressure on the Qantas board would increase but the likelihood of the resolutions actually getting up are somewhere between Buckley’s and no chance.


With the top 20 shareholders owning 81 per cent of Qantas stock, if you can’t persuade the institutions to let the guillotine fall you can forget it.
This is where the second option comes in. Small shareholders dutifully turn up at AGMs but their vote makes almost no difference. Once the chair’s proxy votes are cast everyone retires for tea and bikkies, resigned to the charade. Without the institutions on side, change rarely occurs.
The institution Qantas shareholders need to convince is fund manager Franklin Resources, which appears to be taking a growing interest in the fate of the flying potoroo.


Last Friday, one day after Joyce declared a $252m first half loss and reaffirmed the strategy that produced it, Franklin Resources increased its holding in Qantas from 15.4 per cent to 16.42 per cent. Interesting, no?
Better known as Franklin Templeton Investments, Franklin Resources is based in San Mateo, California. This giant US value-based fund manager has local representation in the form of wholly-owned subsidiary Balanced Equity Management in Melbourne.


Clearly, it believes there’s value in Qantas. Whether it believes that value will be realised under current management remains to be seen.
So, if you’d like to see the back of current management, Balanced Equity, led by managing director Andrew Sisson, is one of the institutions to convince. Remember that it was Balanced Equity that famously refused the $5.60 a share bid from private equity way back in 2006.
You’d expect a few discreet calls between major Qantas shareholders this week. My guess is that after last week’s display, they’ll be reassessing the Qantas management team. Perhaps one of them will soon call Clifford, suggesting he pushes Joyce out. Then, after a suitable face-saving period, Clifford will leave Qantas to ‘pursue other interests’.


That’s what all shareholders, customers and employees need to get Qantas back on track.


I think you will all agree, a powerful story, but the question still remains unanswered... which I can only assume the Institutional Investors are happy with Qantas's poor performance for whatever reason... Although Joyce & Clifford did cop a hiding in the business press at the last reporting period, more than ever before.



Mayday: How Qantas went from national icon to corporate tragedy

I suspect they will cop a bigger hiding when the full year results are announced in three months time.. All eyes will be on Joyce this time around.

Not related to Qantas, but interesting, this story was in the smh doing the rounds for a while this morning then disappeared, had to dig around on google for a time to find it again... JP Morgan is one of the big Qantas institutional investors.

A technical support person who worked for JP Morgan in Australia claims the bank regularly misled its New York parent and the US Federal Reserve by failing to report losing trades.


Interesting times ahead me thinks..

Last edited by TIMA9X; 26th May 2014 at 15:09.
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Old 26th May 2014, 13:22
  #4339 (permalink)  
 
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the shareholders strategy is now quite clear. Manage the share price into the ground. Buy shares for peanuts. Then employ someone competent. Sell shares at double what you paid. Profit. Anyone who bought at $1.10 is sitting on 20% return on capital. selling today. Not bad.
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Old 26th May 2014, 14:12
  #4340 (permalink)  
 
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No doubt AJ is a dead man walking. Having made an utter mess of things, he would only be clinging to his job by virtue of his willingness to cull 5000 workers and pare the place back to the bone. I believe he will be number 5001, after which someone else will be brought in to rebuild the company.

As for LC, $700k per annum for doing next to nothing. Not a bad simi-retirement gig. I honestly think he doesn't care what happens at all.
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