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

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

Old 17th Aug 2014, 16:35
  #4741 (permalink)  
 
Join Date: Apr 2009
Location: London-Thailand-Australia
Age: 11
Posts: 1,057
The media buid up for the 28th has started..

by mrbigbird.. continuing to dismantle and reduce the network and decrease the product quality for our customers is absolutely what we can control,”
Is more on the money.. and yes Gareth believes we should all fall for this crap.. I can't see how LH can be cut back much more, it already is a shell compared to its former self..

The smh story is a rehash of the rehashed story from the AFR on Saturday.. same writer, Jamie Freed.. to her credit, she is getting in early and I sense she is a wake up to them..

“For us, it’s about controlling what we can control, and pulling out $1 billion worth of costs [and] continuing to improve the network and the product quality for our customers is absolutely what we can control,” Mr Evans said.
Qantas, including Jetstar, has a total controllable annual cost base of $11.6 billion, so the planned cuts will hit the international division disproportionately. Qantas plan sparks cuts concerns
and today in the smh
“For us, it’s about controlling what we can control, and pulling out $1 billion worth of costs [and] continuing to improve the network and the product quality for our customers is absolutely what we can control,” Mr Evans said at the CAPA Australia Pacific Aviation Summit.
Qantas, including Jetstar, has a total controllable annual cost base of $11.6 billion, so the planned cuts will hit the international division disproportionately.
Bigbird, this shouldn't distract us from your wonderful post #4841 which speaks volumes! LC is the -8 billion dollar man! What you said in that post should be sent to everyone... it really says it all! Even the media should get their head around that information...

It's only when you expand it all out that the true extent of the destruction of share holder value becomes obscenely obvious.

2,196,330,250 shares issued as of today.

Market cap today at $1.28
= $2,811,302,720

Joyce appointed Nov 28 2008
Market cap on that day at $2.23
= $4,897,816,457.5

Which means that Joyce has been responsible for a loss of share holder value that equates to $2,086,513,740. And that's before the 1 billion or so dip in profit is announced. The board must be very happy with him because they have paid him $22,000,000 to achieve that 2 billion dollar loss. Which is the only thing he has achieved during his 5 year (plus 1) plan.

But it gets worse.

Clifford was appointed 14 Nov 2007
Market cap on that day at $5.09
= $11,179,320,972.50 which
equates to a loss of share holder value of:
$8,368,018,25

I'm simply staggered and appalled to see these losses quantified in black and white.

There is much talk that Joyce will out soon. But as you see he is only a wee apprentice to the 8 Billion Dollar Chairman.
TIMA9X is offline  
Old 17th Aug 2014, 17:36
  #4742 (permalink)  
 
Join Date: Jul 2007
Location: Sydney
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Well no matter what happens next Thursday, the empire at the top and the board won't change. None of them lost their jobs, everyone below them did.
None if them take responsibility, they blame everyone else for their mistakes, no accountability. By the way, what has Hickey done since becoming head of INTL? Someone answer that

They say employee morale is low right now, I am sure it will only get worse.
Qantas 787 is offline  
Old 17th Aug 2014, 22:52
  #4743 (permalink)  
 
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Some other damning figures for AJ.

Year before AJ became the CEO QF made $1.4B profit before tax. This year it will be a $1.2b loss. That is a $2.6B turnaround(in the wrong direction)

The year before AJ became the CEO the QF group had revenue of $16.2B. Last year QF group revenue had shrunk to $15.9B.

Yet despite the shrinking revenue and growing losses, in '08 the group carried 38.6B passengers and grew that number to 48.3B passengers by 2013. That is a 25% increase.

It is quite clear by these figures that passengers are not buying muffins to increase revenue and profits
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Old 17th Aug 2014, 23:17
  #4744 (permalink)  
 
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Qantas Airways plans to cut the controllable cost base of its international business by $1 billion, or one third,
Controllable costs include things like changing international routes (such as cutting flights to New Zealand in non-peak periods) and fleet changes (such as retiring some of its fuel-guzzling 747s) but do not include fuel, depreciation or operating leases, Fairfax Media reports.

Chief financial officer Gareth Evans told the CAPA Australia Pacific Aviation Summit recently: "For us, it’s about controlling what we can control, and pulling out $1 billion worth of costs [and] continuing to improve the network and the product quality for our customers is absolutely what we can control."

Qantas has already said it is targeting about $2 billion in cost savings overall — now it can be reported about half of these savings will come from the airline's international business.

Analysts say more job cuts can be expected.

"They will probably announce they will cut another 2000 or 3000 [jobs] on top of the 5000 already announced," one told Fairfax.

Qantas is expected to report a pre-tax underlying loss of $750 million this financial year.
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Old 17th Aug 2014, 23:52
  #4745 (permalink)  
 
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It's a tragedy that people have been going on in this forum and other threads for years as to what has/is/will go wrong with these people in charge.
Unfortunately nothing will change.
Remember these people don't give a flying about you, your career, or your family. The executive mantra is simple, they believe in one thing only...themselves and should anyone suggest their failings, they will be removed from qantas quick smart. Tow the line or get the boot.
This week I'm predicting the following lines to be reiterated ad nauseam.....
Qantas is facing tough trading conditions, weak australian dollar, strong australian dollar, volatility in the fuel price, higher fuel prices, tough decisions have to be made, cost cutting initiatives, turning the business around, legacy conditions,
lower cost competitors, less maintenance, safety is our number one priority, difficult decisions, jetstar promising to deliver, improving engagement, the unions ...blah blah blah. Please add as you deem fit.
And guess what......Nothing will change.
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Old 18th Aug 2014, 00:04
  #4746 (permalink)  
bdcer
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HnH, you got it.

You think we'd learn from previous experiences, each announcement is essentially the same. We wanted Dixon to go, now we want Joyce to go.

It won't matter, they'll do their job how they want to do it, not how we want/expect it to be done.

If you are really passionate about it, let them know personally. Phone, mail, email, visit. At least you tried, otherwise, try to save some angst & get on with life.
 
Old 18th Aug 2014, 02:37
  #4747 (permalink)  
 
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HnH

Might I add.

What a wonderful job the Executive Team have done despite extremely difficult trading conditions.

&

Despite Regulatory delays & obstacle/opposition to the Jetstar Asian franchise expansion.

MC.
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Old 18th Aug 2014, 02:46
  #4748 (permalink)  
 
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We need a divine intervention.

No .. not Qantas Angels.
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Old 18th Aug 2014, 04:42
  #4749 (permalink)  
 
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The Townsville refueller reports that grief counsellors have been retained for the ensuing period after 28/08.
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Old 18th Aug 2014, 05:03
  #4750 (permalink)  
 
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The Townsville refueller reports that grief counsellors have been retained for the ensuing period after 28/08.
It's sickening.

The only two people who should be feeling a sense of loss after 28 August are the CEO and chair.

When - oh, when - will the institutional shareholders WAKE UP!??
VH-Cheer Up is offline  
Old 18th Aug 2014, 05:07
  #4751 (permalink)  
Thread Starter
 
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Could there be another industry where you could perform so badly and yet make so much money?

Love to know what the guys at Franklin Templeton are thinking right now.

It's insane unless it is a breakup deal.
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Old 18th Aug 2014, 06:13
  #4752 (permalink)  
 
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CAPA Centre for Aviation executive chairman Peter Harbison said he would expect Qantas to cut international routes where the net revenue is lowest or negative.


“You’d have to think Singapore is rocky at best, with so much capacity still in there, and [Perth-Singapore] has already come off,” he said. “South Africa, without the South African Airways partnership [which dissolved this year] is also questionable.”


Mr Harbison said it was also possible Qantas could ask partner American Airlines to offer some services to Australia in a move that would allow the Australian carrier to retire some of its aircraft earlier.
Saj Ahmad, chief analyst of London-based StrategicAero Research, said Qantas should not have abandoned its firm orders for Boeing 787s as part of an earlier cost cutting drive.


Qantas cancelled its firm order for 35 787-9 aircraft in August 2012 and instead now has 50 options and purchase rights for 787-9s. It had expected to receive 17 of the long range, fuel efficient, aircraft by June 2016 before the order was restructured.
Thanks Peter Harbison, the new spokesman for bad news?
TIMA9X is offline  
Old 18th Aug 2014, 06:26
  #4753 (permalink)  
 
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Saj Ahmad, chief analyst of London-based StrategicAero Research, said Qantas should not have abandoned its firm orders for Boeing 787s as part of an earlier cost cutting drive.
There's a distinct shortage of companies that can say they have cost-cut their way to profitability, prosperity and financial sustainability. In fact, I can't think of any.

To cost cut by cutting investment in aircraft that have been designed to deeply cut the cost per ASK on the most strategic routes in the network, that's just outright dumb. That kind of cost cutting might positively impact the balance sheet temporarily but has a far deeper and enduring negative impact on the P & L into the future.

As ye sow, so shall ye reap. And hopefully the reaper is coming for Dumb & Dumber very soon.
VH-Cheer Up is offline  
Old 18th Aug 2014, 06:30
  #4754 (permalink)  
short flights long nights
 
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As I posted months ago...Ask Pan Am about shrinking to profits, it went really well for them.
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Old 18th Aug 2014, 06:47
  #4755 (permalink)  
 
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Agree VH-Cheerup.

But we have an airline run by accountants, not people who know how to run an airline.

Letting go of the 787 options will end up being one of the dumbest decisions, right up there with not ordering the 777
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Old 18th Aug 2014, 06:58
  #4756 (permalink)  
 
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Letting go of the 787 options will end up being one of the dumbest decisions, right up there with not ordering the 777
That looks a no-brainer, but I reckon even if they HAD 777's and 787's this bunch of clowns would STILL have screwed it up... I'm sure they would have found an empty airfield somewhere to park them! Have they made ONE decision in say 10 years that hasn't been an absolute unmitigated disaster?
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Old 18th Aug 2014, 07:49
  #4757 (permalink)  
Keg

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Lightbulb

The 787s will come but if they announce them now, they won't be able to get rid of all the engineers they want to get rid of. They'll announce them only when they don't have the critical mass of engineers or the time frame to maintain them. Then watch them start to get rid of A330s until they no longer have critical mass of those too.
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Old 18th Aug 2014, 08:27
  #4758 (permalink)  
 
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Mr Harbison,
Expect Qantas to cut routes where the revenue is low or negative? Jetstar International has been negative for years including 2006 when they handed over 4 A330s that were earning 35% of the Qantas domestic profit to Jetstar who charges $80 to go to Bali. Brilliant!
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Old 18th Aug 2014, 09:54
  #4759 (permalink)  
 
Join Date: Jan 2008
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Posts: 186
Head Bangers.......

Over and over, otherwise intelligent aviation personnel, repeatedly proclaim their astonishment and disbelief that the powers that be, remain in power.
The company is being dismantled, the strippers are in the house, the announcement is for the public, then it will be taken off the table into private hands. To blame this crap on managerial incompetence, as opposed to a controlled demolition, is laughable.

Last edited by Acute Instinct; 18th Aug 2014 at 10:19.
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Old 18th Aug 2014, 09:57
  #4760 (permalink)  
 
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then it will be taken off the table into private hands.
Intrigued... Pray tell, what then?
VH-Cheer Up is offline  

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