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

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

Old 20th Jun 2014, 01:31
  #4481 (permalink)  
Join Date: May 2001
Location: Sydney
Age: 56
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Part time as well due to the kids.

(Her own view when she accepted the job.)
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Old 20th Jun 2014, 01:53
  #4482 (permalink)  

Nunc est bibendum
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Posts: 5,177

G'day MC, yeah, saw that. Thought the same.
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Old 20th Jun 2014, 05:04
  #4483 (permalink)  
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Qantas cuts Tasman flights

5:00 AM Friday Jun 20, 2014

Jetstar will add up to seven new services, but is quitting Auckland-Adelaide

Qantas has been popular with corporate travellers, offering a business-class cabin, while Jetstar is aimed at the leisure market.
Qantas is cutting flights across the Tasman while its budget subsidiary Jetstar will fly more services on the cut-throat route where airline margins have traditionally been thin.
The Qantas group, under financial pressure from intense domestic competition in Australia and suffering heavy long-haul losses, said the changes were designed to better reflect seasonal peaks and deliver a better mix of business and leisure services.
A spokeswoman said there would be three fewer Qantas flights a week during the peak season and 15 fewer during the low season.
The Qantas services will be cut from October and while Jetstar will add up to seven new services, it is quitting its three times a week Auckland-Adelaide service.
Qantas has been popular with corporate travellers, offering a business class cabin, while Jetstar is aimed at the leisure market and has no business class. Any reduction in competition could force up prices on the route, where about 1.2 million Australian tourists fly to New Zealand and 1.3 million Kiwis fly the other way each year.

During the low season Qantas capacity will drop by 12 per cent with all cancelled routes out of Auckland to Australia's main eastern cities. The number of flights will fall to 82 a week during the low season.
The decision to cut back on the Tasman follows an announcement by Qantas last month to freeze domestic capacity growth in Australia in the face of competition from Virgin Australia.
Qantas International chief executive Simon Hickey said the airline was "becoming more dynamic and more flexible" to respond to market conditions on Tasman routes.
"This has seen us take advantage of seasonal opportunities, like the Perth to Auckland service we started last summer. On the flipside, we'll reduce flights at times of the year when demand naturally drops back due to seasonal factors."
Hickey said transtasman was "a really important corridor" for Qantas premium travellers. The Qantas spokeswoman said it was difficult to calculate the net impact on the number of seats given some new services could be started.
Qantas runs its transtasman flights with a New Zealand-based operation, Jetconnect, who crew eight Boeing 737-800s on the route and are paid less than equivalent Australian workers. Jetstar is believed to have even lower costs.
As part of a global Qantas alliance with Emirates, the airlines' better co-ordinated services was approved with minimum capacity conditions to ensure competition was maintained. Qantas says that after the changes announced today the capacity requirements of regulators would be met.
At the time New Zealand Transport Minister Gerry Brownlee approved the alliance he said he was confident that competition, cost savings along with capacity commitments would keep fares in check.
Jetstar Australia and New Zealand chief executive David Hall said passengers who had booked on the Auckland-Adelaide service would be re-booked via Melbourne or Sydney.
"While we have worked hard with tourism organisations and our airport partners, the [Adelaide] route has not performed in line with expectations." Qantas has been sternly challenged at home by Virgin Australia which is eating into its corporate and government travel market and hurt by Virgin's alliance with Air New Zealand across the Tasman. That partnership has allowed Virgin and Air New Zealand to co-ordinate services and harmonise their booking systems.
Although Virgin suffered a big half-year loss, investment from Air New Zealand and other airline stake holders Etihad and Singapore Airlines has shored up its operations. This has angered Qantas which has told the Australian government it has been disadvantaged by investment in Virgin by foreign airlines with state ownership. In February Qantas posted a A$235 million half-year loss and announced plans to cut 5000 jobs.
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Old 21st Jun 2014, 09:07
  #4484 (permalink)  
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How does the reduction in Tasman services square with the ACCC and NZDoT ruling that there was to be no reduction in service as a condition of the QF/EK deal?
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Old 21st Jun 2014, 16:36
  #4485 (permalink)  
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How does the reduction in Tasman services square with the ACCC and NZDoT ruling that there was to be no reduction in service as a condition of the QF/EK deal?
Well picked up Chris2303

from about 1.10 in
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Old 22nd Jun 2014, 03:44
  #4486 (permalink)  
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Jetstar and Jetconnect are both part of the Qantas Group. It looks to me like the total Group capacity on an annual basis stays about the same. Unless you are looking from a Business Class perspective.
(It must be time to roll out a new lounge in AKL, the way it's going. Lounge Planning Guy, whoever s/he is, usually gets there first, just before Fleet Rationalisation). :-)
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Old 22nd Jun 2014, 03:53
  #4487 (permalink)  
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I agree, one must remember that Qantas is no longer just long/short haul but includes the likes of Jetconnect and all the various Jetstar operations.....like it or not!!
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Old 22nd Jun 2014, 04:16
  #4488 (permalink)  
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Jetstar and Jetconnect are both part of the Qantas Group.
Yep, on reflection, that's how the ACCC will view it as well..

It's going a bit like some ports in Asia, brand new first class lounge awaits no first class seat available on QF flights.

or it's a bit like Coles, everything is down, down, down for the QFI product, par baked 'elsewhere," reheated "fresh" in Aus. Well, the same idea, (Jetconnect, Jetstar v the old perception of full service QFI . )

I guess the general public have accepted Jetstar and Jetconnect as the new face for the Qantas brand, I doubt we will be hearing too much opposition to these changes.


Last edited by TIMA9X; 22nd Jun 2014 at 09:02. Reason: finger trouble
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Old 22nd Jun 2014, 08:28
  #4489 (permalink)  
Join Date: Jul 2012
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Posts: 49
A380 Truth comes out finally...

Extract from article basically condemning the A380 to an early grave...
The Airbus A350 and the B777X will make them a ghost, parked at Victorville..no one will want them..

Airbus™ Future Headache: Emirates™ dumped/retired A380s
Posted on May 6, 2014
Strategic Aero Research

Emirates™ A380 retirements will force asset value plunge

Second hand A380 market non-existent

Emirates 777X impact on gas-guzzling A380

Continued A380 wing angst

For all the gimmickry that Airbus aligns with the A380, the impending countdown to the arrival of the 777X at Emirates delivers some unwelcome news.

Putting aside the commercial superiority of the 777X family, the Emirates' hold on the A380 order book poses questions as to how the second hand market will cope with near-zero demand for used A380s.

Emirates will be handing back two-dozen A380s to Doric/Amedeo as well as expediting the retirement of the overweight and several-times-over-rewired A380s as it inducts more of the type around the time the 777-9X also enters their fleet in 2020.

Amedeo™s dubious order for 20 A380s is already in jeopardy because Emirates doesn't want them and Amedeo has failed to place even a solitary unit elsewhere. Once these ageing A380s come out of Emirates fleet * where will they go? Who will buy them? Will Airbus further underwrite a depreciating asset and thereby kill off interest in new-build A380s? And then there is the leasing market in general* after ILFC ditched the A380 order, except the Amedeo order¯, no leasing firm has ponied up to this toxic airplane.

Lets cut to the chase;* the possibility of the A380 getting new engines is nil. Such a move would kill any interest in the loss-making jet and would also compound Airbus™ financial capability to put a lid on the continued cost escalation to this $27bn-plus disaster. If Airbus does make the stupid move to give the A380 new engines, who exactly will stump up the cost?

Pratt & Whitney has no new large engine to offer. Its GTF engines are proving troublesome, GE will not be partnering with Pratt to provide an updated GP7200 engine and Rolls-Royce has eyes on new engines at the start of the next decade, which by all accounts would be too late for the A380.

Emirates™ savvy in commanding the near 50% of the entire A380 backlog speaks to its desire to access Europe (or threaten to dangle A350 and A380 orders) as well as making the most of its frequency-based model to use Dubai as a global transit nexus that could frankly be served with any large, long haul airplane the A380 has no exclusivity here.

Current A380 operators and customers have found that filling the A380 is not easy* and even on the rare flights that they have filled, they are not profitable.

Malaysia Airlines, Thai Airways, British Airways, Air France, Qantas, Lufthansa, Korean Air, Singapore Airlines, China Southern Airlines all have succumbed to John Leahy Kool-Aid that it takes an A380 to compete with an A380” nonsense, only to discover that they have slowed, not sped up A380 deliveries and in the case of Virgin Atlantic, have continually deferred it until they can fathom what to do with an obsolete airplane post-2018.

Airbus has spent over $1bn trying to fix the wing cracks already.
Emirates is feeling the strain here as the biggest victim to this design flaw that is compounded now by the metal fatigue in the wing spars* this will impact operational life, cycles and values.
Emirates was shrewd to conduct sale-leaseback deals to cash in on the then high value exclusivity of the A380 back in 2008 because so few examples were in service at that time.

Fast forward to today, Airbus is struggling to even give them away because airlines are wising up to the fact that the A380 has old technology engines, it's not a money spinner even if you fill it (yield is king, not capacity) and that the limitation of use restricts deployment.

While the 777-9X will deliver a mortal wound to the A380, it is actually Airbus™ biggest customer (Emirates) that is shaping up to be its biggest nightmare with its biggest flop of an airplane and there is nothing Airbus can do about it.

That no one is even discussing this inevitability points to an abject
understanding of how fatally flawed the entire A380 program and process was when it was launched back in 2000.

Emirates will be dumping A380s as Airbus railroads the program into yet another brick wall.

Ben Rich, M.C.C.
Latitudes Unlimited
International Maritime & Aviation Consulting

QF had the chance to order B777 and B777x but instead when the buy one get one free (every A380 gives you a discounted A330 - at a special price)

Time for QF Management to go, bad decisions after bad decisions...
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Old 22nd Jun 2014, 12:49
  #4490 (permalink)  
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The A380 made perfect sense ten years ago when it looked like airlines would be able to increase both yield and loads in a slot-constrained world. That was the paper A380, not the aircraft which is in service today.

That Airbus wasn't able to deliver the promised aeroplane is not the fault of the people who ordered it exactly. Perhaps they did buy into Airbus' view of the future, but it was a pretty compelling argument back then. Once you accept the premise that capacity is king for your longest routes, then the A380/A330 combo starts to make more sense than the 747/777 solution.

I am a rabid Qantas management hater, but in this instance I don't think they were wrong, initially. They were and are wrong to (uniquely) eschew the 777 since it became apparent that the aeroplane, the airline and the world did not turn out as expected.

If Qantas had the network and traffic that we had expected to have the A380 would of course be less of a disaster. Qantas now is, like Joyce, miniscule.

Finally...the author of that piece neglected to mention two additional reasons for a null resale market: the upper deck is not strong enough to convert the aircraft into a freighter. So that traditional secondary demand is also missing from the market, and,
2. The infrastructure is missing from the part of the world where old aircraft typically get sold.

He also seems to ignore the fact that EK seems to be content with the aeroplane: they are replacing the 777 more and more on many capacity constrained routes, just as Airbus predicted.
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Old 22nd Jun 2014, 13:50
  #4491 (permalink)  
Join Date: Dec 2013
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Posts: 119
Strategic aero research..................is that a department of Boeing Public Relations!
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Old 22nd Jun 2014, 23:42
  #4492 (permalink)  
Join Date: Dec 2001
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I'm afraid it looks like Strategic Aero Research is little more than a blog published by a Boeing fanboy. They appear to have no customers and have written 4 articles in their history, all in the past fortnight.
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Old 23rd Jun 2014, 05:07
  #4493 (permalink)  
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Supposedly we will be flying the A330 to Honolulu 3 times per week starting September.
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Old 23rd Jun 2014, 07:43
  #4494 (permalink)  
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Correct - necessary to enable the retirement of the 767
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Old 24th Jun 2014, 05:06
  #4495 (permalink)  
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Qantas Town Hall meeting hears of $720 million group loss

Qantas Town Hall meeting hears of $720 million group loss | Plane Talking

According to some present Qantas Group CEO Alan Joyce has told attendees at a recent ‘town hall’ style meeting with employees that the company will lose around $720 million in the current financial year, which closes on 30 June.
This guidance isn’t surprising, and who better to know the figures than the group CEO?
What is surprising is that having apparently shared market sensitive information with employees there has not been, up until 1130 this morning eastern time, a notification under continuous disclosure rules to the ASX. (Note below that Qantas says Mr Joyce was quoting market consensus, not offering guidance.)
The meeting was held early Monday afternoon at the Qantas Jet Base in Sydney.
Mr Joyce is reported to have said that the loss of $720 million had been offset by savings of $800 million during the same financial year. If this is true, this reflects poorly on the state of the group in this nearly over financial year. Mr Joyce has been group CEO since late 2008, a period notable for a cessation of dividend payments and a deeply damaged share price.
At the same meeting the CEO of Jetstar, Jayne Hrdlicka is said to have said that Jetstar had ‘no idea’ when Jetstar Hong Kong would be approved.
That is an appalling admission considering the waffle that was spoken about Jetstar Hong Kong to shareholders in 2012, with guidance that the airline would most likely be operating by the end of 2013 at the very latest.
Qantas has been asked to comment on these reports, or elaborate on them in any way it sees fit.
Update: Qantas responds:
You’d be wrong to rely on those reports, and it would be misleading to publish them.
Mr Joyce very clearly referred to market consensus – there was no guidance. The $800m refers to the transformation projects already underway, which were included in the recent Mac Bank presentation, lodged with the ASX.
There was no sense that one would offset the other, not least because that $800m isn’t realised in FY14.

Ms Hrdlicka did not say she didn’t know when JHK would be approved. She said it was taking longer than anyone had expected but that we remained confident
Interesting comment from a reader ..

Lots, and I mean lots, of expenses have been front-loaded into the 2013/14 reporting year. Get ready for the miraculous turn-around next year, bonuses all round and much back-slapping of the soon to be replaced CEO with an amazing golden parachute for having so successfully turned the business around in the space of only 12 short months.
It appears nothing affecting the airline industry today but look around the 11.30 time slot today...

If he indeed made this statement, isn't he required to notify the ASX first that something had changed, which will impact the share price?

It appears since this statement became public there was indeed an impact on the price.
  • A 'matching firm' in the ASX is VAH....
  • There appears no industry specific problem affecting 'airlines' (eg. fuel, accident)
  • Therefore is could be assumed that such a statement has affected the share price of Qantas alone.....
  • The Corporations Act 2001 says... the company is required to under Section 674 to disclose to the market any information if it was generally known would in the opinion of a reasonable person have an effect on the share price.....

Last edited by TIMA9X; 24th Jun 2014 at 05:19.
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Old 25th Jun 2014, 07:58
  #4496 (permalink)  
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The Chinese are a comin'

From today's SMH,

'However, Mr Zhou said, the airline planned to buy a stake in Qantas as part of its growing relationship with the airline.'

This rumour has been floating around for awhile and seems to have been confirmed by this statement.

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Old 25th Jun 2014, 09:00
  #4497 (permalink)  
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Old 25th Jun 2014, 23:04
  #4498 (permalink)  
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They've had a taste, and now want something more palatable......
Jetstar to cancel Hamilton Island to Brisbane flights | Whitsunday Times
We look forward to working with Qantas and expanding their service to the destination over time.
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Old 26th Jun 2014, 02:26
  #4499 (permalink)  
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Interesting Qantas is cancelling Tasman flights due to "peaks and troughs" When Qantas is in a seasonal trough, it is due to light leisure travellers as business travellers generally only fall off over Xmas. This would mean Qantas is essentially a "leisure" traveller carrier.

What is also interesting is Qantas is reducing its schedule in October? This is due to lights loads, I'm guessing because of a lack of leisure travellers. The month of October generally isn't a trough? The really interesting thing is Jetstar is picking up those flights? Go figure, a leisure carrier picking up flights that are light due to a trough in leisure travellers.

What I'm trying to get at is, why would you replace your premium carrier when leisure loads are light with a leisure carrier only? It doesn't make sense? What's also interesting is both the AKL-ADL and AKL-CNS Jetstar services have been canned as they were a flop and failed. They won't let Qantas try these routes as Qantas management claim these routes to be leisure routes, Air New Zealand servicing these routes would claim not. If Qantas serviced these routes they would be the only carrier with business class giving them an advantage. Qantas has just proved with the Tasman reschedule the loads are light due to light leisure demand. Hence my point about Qantas being a leisure carrier. It's not only a leisure carrier, but a premium leisure and business carrier.

This is the current Qantas strategy, expand Jetstar, shrink Qantas. The more they expand Jetstar, the more they upset their loyal pax that will take their business elsewhere.

I think you will see a slow takeover of most Qantas services on the Tasman by Jetstar with the odd Tasman flight flown by Qantas. Emirates will fly the rest of the business traveller, what ever business traveller left over who is not peeved off with the lack of Qantas services will transfer their business to Air New Zealand.

Great strategy Qantas, you should all work in Air New Zealand's marketing department!
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Old 26th Jun 2014, 02:56
  #4500 (permalink)  
Join Date: Oct 2007
Location: Australia
Posts: 75
Most airlines operate a seasonal schedule and add/reduce flights according to demand throughout the year. SQ for example regularly fluctuates between 3 and 4 flights a day SINLHR depending upon demand - as do others eg CZ or KE adding supplementary flights to Oz during peak times, and reducing throughout the remainder of the year.

I agree it doesn't make sense adding JQ ILO QF in this case -- as the leisure travellers that fill the back of the bus probably just won't be travelling full stop during that period.. Then again, maybe JQ would lose less money than a QF flight at the same period, who knows.

Reduced flying is never good for the employees - but I think it is great QF seems to finally be taking some risks and working out where they can save money and grow revenue in a dynamic market -- supp flights to SCL/DFW over the holidays are one example.
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