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

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

Old 28th May 2014, 13:58
  #4361 (permalink)  
 
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Eh? He certainly wasn't global CEO, then or ever. That one was down to Tom Albanese, and he wore the consequences.
Before his departure in 2007, Clifford began the process a couple of years earlier by talking with Alcan's bosses about a merger belieing that they had to "time" the move, as Alcoa wanted Alcan as well. Rio's bid won.
Clifford departed in May 2007 and Albanese simply completed what was a bad project from the start.

Correction to my previous post. Was referring to Alcan, not Alcoa.
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Old 29th May 2014, 08:46
  #4362 (permalink)  
 
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Things are on the up...

3 reasons Qantas Airways Limited shares are climbing higher

since 21 May, the stock is up about 12%. Could this be just a relief rally, or is there something real behind it?
1) Air wars for airways
The company was in a heated battle for market share with Virgin Australia Holdings Ltd (ASX: VAH). It wanted to maintain its 65% control of the domestic market, so it expanded seating capacity. Virgin Australia answered with its own increase in capacity. Now, it seems both companies have called at least a temporary ceasefire and are cutting back on capacity. This can work to support ticket prices and give Qantas a little margin relief.

2) Restructure program
The company announced in early May that its restructure program target is to create $800 million in cost savings by fiscal 2015. The company projects that it will be positive free cash flow from fiscal 2015 onward. The job and service cuts may reduce revenue, but if margins and operating costs in general can improve then thatís positive. The stock could rise before the actual savings and earnings targets are met.

3) Airliner fleet changes
Qantas will be retiring older aircraft in line with its reduction in pilot numbers. This will also help the company hit its target of reducing fuel costs by more than 10% since older aircraft are less fuel efficient. It has eight new Airbus A380s on order, but has postponed delivery.

Now what: It is still early days for its transformation program to take root and show concrete improvements. Further rivalry with Virgin Airlines could exacerbate progress, so although a 12% rise in share price is always welcome, there still could be more twists and turns. I believe it may be better to closely watch from the sidelines and view any initial missed upside as insurance that things are getting better.
my bold

http://www.fool.com.au/2014/05/28/3-...imbing-higher/

The market seem to like it and Allan must be happy again.
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Old 29th May 2014, 13:21
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Before his departure in 2007, Clifford began the process a couple of years earlier by talking with Alcan's bosses about a merger belieing that they had to "time" the move, as Alcoa wanted Alcan as well. Rio's bid won.
Clifford departed in May 2007 and Albanese simply completed what was a bad project from the start.

Correction to my previous post. Was referring to Alcan, not Alcoa.

My bad, don't know what I was thinking, CEO from 2000-2007. So, one lays the seeds for a very bad purchase, another wears the consequences, and a third one pulls them out of it. We hope.
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Old 31st May 2014, 07:06
  #4364 (permalink)  
 
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I assume Alan is less than happy again today with former News Corp heavy describing him as a misfit in an article in the AFR. He also describes the BoD as being poor questioners that have allowed AJ to get away with poor decisions.....

Last edited by 1A_Please; 31st May 2014 at 07:08. Reason: Source
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Old 1st Jun 2014, 00:16
  #4365 (permalink)  
 
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Alan must be happy now - he will be able to buy himself a new desk!

Qantas Major Event - Engineering & Workshop Closure

What is that phrase about selling family silver??

Maybe we buy and lease it back
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Old 1st Jun 2014, 01:24
  #4366 (permalink)  
 
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...and if the cold war restarts between russia china and the U.S., Qantas will have the pleasure of buying back similar equipment at new prices.
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Old 1st Jun 2014, 01:56
  #4367 (permalink)  
 
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No Sunfish, they will be able to buy newer stuff from the engineering firms that support the mining sector. Except of course gold mining. But for that to be true there will be 70% less flying anyway.

It is early days yet, but, like you, I expect that a very different international picture will emerge over the next two years.

Unless China jumps the gun somewhere in the S.C. Sea sooner. Imagine trying to unravel the wholesale manufacturing Sinofication of the last forty years.
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Old 1st Jun 2014, 08:22
  #4368 (permalink)  
 
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Over the years, Cowley expanded control of his fiefdom in Australia, beyond News. By 1992, he had taken over from Murdoch as joint chairman of Ansett, which was 50 per cent owned by News Ltd- but only after first securing Murdoch's agreement to force out the other joint chairman, Sir Peter Abeles, which he did within months.

Ansett was a challenge for Cowley, as it repeatedly lost money. News eventually sold out of the airline in 2000, offloading its stake to Air New Zealand for $680 million. Singapore Airlines had been the underbidder. It was exquisite timing as Ansett went into administration a year later and eventually collapsed.

"Airline businesses are very difficult to run and very difficult to make a profit in," Cowley says. Its why you would think he wouldn't judge anyone managing an airline too harshly. But he does if that person in Alan Joyce, the chief executive of Qantas, who worked at Ansett for four years until 2000 as head of network planning.

Cowley says when running any business a chief executive should surround him-or herself-with good people and especially in the airlines, when its all about the people working in that business, and not just the service you sell.

"Its important that Qantas remains successful and properly funded and again that's people," Cowley says. "Alan Joyce is a strange man. I've had one of his top people come to see me. It was scary. He's worried where Qantas is going or not going.

"It'll be interesting to see where Alan Joyce finishes up. I think he's a misfit."

Under Joyce's five-and-a-half years of leadership, loss making Qantas had seen multiple changes in strategy as he struggles to turn around the ailing national flag carrier. In February, the airline reported a first half loss of $252 million- its biggest half-year loss since 1995.

By contrast, Qantas reported a doubling in its first-half profit in February 2008. Joyce was made chief executive in November of that year.

The carrier's poor performance saw its stripped of its investment-grade credit rating last December and relegated to junk status. Cowley wonders about the muscle of the Qantas board.

"They probably just accept everything he [Joyce] tells them, rather than question everything he tells them."

Cowley says one of his strengths in his business career, and in his personal life, has been judging people. "I'm good at assessing people and looking at whether I can trust them and that's helped me all my life."
The Australian Financial Review [AFR] 31 May-1-June 2014 page 50
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Old 1st Jun 2014, 08:54
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The Australian Financial Review [AFR] 31 May-1-June 2014 page 50
And about 4,506 posts on this thread alone.

This video was just passed on to me by yet another very deeply concerned employee. You cannot make this 'stuff up'... (Pun - if you noticed it - is intended).

http://youtu.be/CuMzued9Fug

Last edited by V-Jet; 1st Jun 2014 at 12:35.
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Old 2nd Jun 2014, 02:08
  #4370 (permalink)  
 
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ASIC will be looking very closely at what and how Elaine has mislead the ASX.
Watch this space?
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Old 2nd Jun 2014, 02:59
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Someone better check if anyone at ASIC has Chairman's Lounge privileges if that is to be even any sort of remote possibility.

I doubt it though, given ASIC's history and preference for low lying fruit who cannot afford lawyers.
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Old 2nd Jun 2014, 04:08
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In the video above the comment states 'can you imagine Australia without Qantas?'. Part of your problem lies in the fact that 'most' of the travelling public seem to be able too. The shutdown of the Qantas group although a tragedy for the staff and their families wouldn't have a significant impact in the long term on the public. Many 'new', 'reborn' carriers would spring up in its place and the public would continue to flee to the middle eastern / Asian carriers that they now seem to prefer.

It is always a shame to see a great brand 'trashed' like has happened here but the fact is this decline started many years ago before the tenure of the current board, yes the current management seem to have accelerated the decline through some quite stupid ventures but from the moment Australia gave so many flying rights to 3rd party carriers the decline was on.

Add into that mix some ridiculous fleet choices and then the current board and it is almost terminal. The 380 was a massive mistake, similar carriers such as Air New Zealand realised that they just didn't have the 'hub' type operation to have such large aircraft, Qantas seems to have been on a bit of an 'ego' trip in deciding that 'they must operate a huge fleet of the worlds biggest aircraft'. Add to this the reluctance to admit mistakes like the lack of 777's and the almost unbelievable decision to give the 787's to Jetstar and the lid of the coffin is almost closed.

Whether we like it or not Qantas is now an airline in a truly global market where many of its competitors operate in a vastly 'lower' cost environment. This means that in order to compete Qantas has to try and find ways of offering an equivalent fare structure with much higher current operating costs. Jetstar, although not born out of this need, has been adopted as the vehicle to provide this 'new' competitive structure which it sadly could of had it not been 'managed' into the white elephant it is now.

What drives me insane about all of this is that Q management have had soooo many opportunities to fix things along the way! Jetstar could have been setup as a 'separate' airline for cost but with a group List to enable easy movement of staff resources to cater for variations in each business. Aircraft types could be streamlined such as convert some of the A320 options for Qantas and or Jetconnect to give synergies in training / maintenance etc. The board should have, when fuel went sky high in 2005 ish swallowed their pride and done what the majority of other airlines did, ground fuel hungry aircraft and replaced them with wide body twin jets. Instead we still have 747's and 767's flying around, my god Boeing reportedly offered the group some 777 airframes in the wake of the 787 delay... DOH!!

Last edited by Ollie Onion; 3rd Jun 2014 at 05:51.
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Old 3rd Jun 2014, 03:28
  #4373 (permalink)  
 
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787 was designed as a hub buster. It was a business traveller's answer to wonky schedules. What did Qantas do with it? Gift it to Jetstar as a freight truck rather than have it compete with and be more popular than the 380. Way to go Qantas!
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Old 3rd Jun 2014, 05:03
  #4374 (permalink)  
 
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It is always a shame to see a great brand 'trashed' like has happened here but the fact is this decline started many years ago before the tenure of the current board, yes the current management seem to have accelerated the decline through some quite stupid ventures but from the moment Australia gave so many flying rights to 3rd party carriers the decline was on.
my bold
Great post Ollie, if we look at what was said from this current lot running the show over the last few years, I think we can see why Qantas is in such a state, they (the management & board) will say anything to avoid the realty of what is really happening in the marketplace, they have got away with it for too long right under the noses of people who should know better. (check video below.) I still believe "brand Qantas" is strong and will survive, but currently "strangled" with this management team who have had their minds on other things for far too long.. they simply forgot to compete... as all other Airlines have to, to survive.. Jetstar Asia should be merged back into the Qantas branding... why spend so much time building a brand that is still small in the Asian marketplace..? Everyone knows Brand "Qantas" in Asia, the Jetstar brand simply has little impact by comparison. (I spend a lot of my time in SE Asia and feel very comfortable in saying this, it's a no brainer AJ, JH)

ASIC will be looking very closely at what and how Elaine has mislead the ASX.
Watch this space?
Sure, and there is plenty of evidence out there for ASIC to see that things are "not quite right".., but I guess they are waiting for someone to do it for them, they appear to have a problem thinking for themselves... my last try, hope someone on here can see where the problems are and do something about it, I think Nick X is getting close, he just needs some help to get it over the line..

None of you at Qantas deserve what has been happening, you have done nothing wrong.

http://youtu.be/7t173zQi7J4
.

Last edited by TIMA9X; 4th Jun 2014 at 14:42.
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Old 3rd Jun 2014, 07:08
  #4375 (permalink)  
 
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Couldn't agree with you more, Lodown.

787 was designed as a hub buster. It was a business traveller's answer to wonky schedules

The 788 is the wrong airframe for the wrong airline on the wrong routes. Seats are being blocked to limit TOW due to the low thrust eng's/light weight pylons; there goes the profit, (if any), before the brakes are even released.
In any case the C, D & E demographic don't give 2 hoots about what machine they are riding in, all they care about is the $49 Bali/Phuket/Honolulu/LAX/London/moon return.
The business traveller, (read profit), on the other hand does care & they'll pay a premium for it.
Here's a thought, put a red tail on the 788's and replace the 76' with them on the shark patrol. The suits would queue up for this, it might even get close to that 65% folly and would go some way to fix the RIN problem.
All that's needed is a quantum leap in ideology by management and....oh, hang on
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Old 3rd Jun 2014, 11:40
  #4376 (permalink)  
 
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The shutdown of the Q group although a tragedy for the staff and their families wouldn't have a significant impact in the long term on the public.
I disagree. 30,000 unemployed Aussies, multiplied by their dependents, would have some effect on our local economy. The loss of business to those companies contracted by QF would also feel some pain, so too would their employees.

In the past, whenever I was asked what I did for a living, people I spoke too were generally full of praise for what I did, and for the brand. These days it's a completely different story. When I tell people what I do for a living the very first thing I hear is "why does your CEO still have his job", without fail. And I am hearing this a lot. I think Aussie's still care enough for our national carrier.

Someone better check if anyone at ASIC has Chairman's Lounge privileges
Exactly. And add CASA, Politicians, Fund Managers, and Media Moguls to your list.
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Old 3rd Jun 2014, 20:59
  #4377 (permalink)  
 
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Exactly. And add CASA, Politicians, Fund Managers, and Media Moguls to your list.
They are all members of the Chairmans Lounge ... Why would they risk losing out on the free iPads and Grange. The Chairmans Lounge is a status symbol amongst the elite..it's a powerful tool.

But I am beginning to think that attraction might fade... With the decline of QF that Joyce has overseen .. I am wondering if the country's power brokers really want to be associated in any way with the brand.. Even for freebies
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Old 4th Jun 2014, 03:15
  #4378 (permalink)  
 
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put a red tail on the 788's and replace the 76' with them on the shark patrol.
Shark patrol? Please explain?
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Old 4th Jun 2014, 03:29
  #4379 (permalink)  
 
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'Shark Patrol'... Vernacular for bouncing up and down the coast all day. ie SYD MEL SYD BNE SYD

aka 'the monorail'.
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Old 4th Jun 2014, 03:58
  #4380 (permalink)  
 
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'Shark Patrol' used to be the Tasman but as Australian Qantas doesn't do this anymore I guess that term has migrated to the Mainland with the aircraft.
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