MERGED: Alan's still not happy......
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With Macquarie Private Wealth reporting that it now thinks the Roo will have a pre tax LOSS of $440M rather than a pre tax Profit of $149M for this financial year, it seems that we won’t have to wait two years for the ‘Next Instalment’ Paragraph.
Further austerity measures not far off I reckon.
Further austerity measures not far off I reckon.
Surely a loss in the magnitude of $440m would be the catalyst for the removal of Joyce and the rest of the useless pr1cks!
How long can the institutional investors support their "strategy" before enough is enough?
How long can the institutional investors support their "strategy" before enough is enough?
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Now don't interpret my comments that because the banks own a stake in Qantas that it is a good buy. I am sure that they have made a lot of losses on various investments along the way to their major profits (CBA: $7B+, NAB: $5B+).
CBA has something like $700b in assets under management, so it's pretty small fry in the grand scheme of things for them.
In another life I have dealings with commercial finance. Take it from first hand that the guys in 'big loans' at CBA who happily boasted to me about having a meeting that afternoon with the great BGA have no concept of business - let alone how insane the policies they backed were. I was meant to be impressed with their cheap boastful talk. They are incompetent, uneducated and as good at running a sound business as Wayne Swan was at balancing a budget.
I left that meeting in absolute disgust knowing the morons behind AJ were more stupid than I would have previously thought possible. I mention CBA deliberately.
I left that meeting in absolute disgust knowing the morons behind AJ were more stupid than I would have previously thought possible. I mention CBA deliberately.
440 Million dollar loss hey?
Might want to drop this line in the sand rhetoric. It's not a game of monopoly where you get to turn the board over and start again. It actually involves about 40,000 peoples lives (both Qantas and Virgin).
Best to leave ego out of billion dollar decisions. I'm just glad Borghetti didn't get the top QF job
.
VJet thats pretty heavy handed comparing people to Wayne Swan. Probably a bit below the belt there..
Might want to drop this line in the sand rhetoric. It's not a game of monopoly where you get to turn the board over and start again. It actually involves about 40,000 peoples lives (both Qantas and Virgin).
Best to leave ego out of billion dollar decisions. I'm just glad Borghetti didn't get the top QF job
.VJet thats pretty heavy handed comparing people to Wayne Swan. Probably a bit below the belt there..
Last edited by Berealgetreal; 22nd Nov 2013 at 10:51.
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A $440 million dollar loss seems a little excessive, even under a Joyce leadership, however there must be some underlying issues here because the little bloke certainly is rattled, and he normally maintains his miniature composure. Is EK putting all its fuel on QF's tab? 
And think about it, he has skinned the workforce, bought aircraft that repair themselves, plus he he is continually gadding about telling everybody for years how he is 'the grand bauble atop the Qantas Christmas tree', so what has gone wrong? What has changed? Please explain Alan, as you surely can't blame a $440 million hit on Steve and his big bad engineers or the incredibly overpaid techies, or will you?????
In store soon, 'The Man Who Finally Killed Qantas'.
And think about it, he has skinned the workforce, bought aircraft that repair themselves, plus he he is continually gadding about telling everybody for years how he is 'the grand bauble atop the Qantas Christmas tree', so what has gone wrong? What has changed? Please explain Alan, as you surely can't blame a $440 million hit on Steve and his big bad engineers or the incredibly overpaid techies, or will you?????
In store soon, 'The Man Who Finally Killed Qantas'.
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‘......must be some underlying issues’......
According to this Saturday’s edition of The Australian-
- Morgan Stanley has adjusted its full-year underlying pre-tax profit estimate from a loss of $73 million to a loss of $504m for the current financial year, saying the second-half capacity situation "appears grim".
- However, JP Morgan is forecasting a net loss for the airline of only $157m, including the cost of the impending closure of its heavy maintenance base at Avalon in Victoria.
Nonetheless, Qantas isn’t dead yet. Benefits of renewed direction should not be underestimated.
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Paragraph 337
If the little fella is rattled then it could only be pressure from Institutional Investors.
The little fella has already demonstrated a lack of accountability and responsibility from everyone else as listed below.
1. Employees, the lockout.
2. The government, shutting down the airline
3. Partner airlines like BA & CX
4. Tourism Australia
5. Politicians with the Senate Inquiry
6. Passengers, stranding them with the shutdown.
If the little fella is rattled then it could only be pressure from Institutional Investors.
The little fella has already demonstrated a lack of accountability and responsibility from everyone else as listed below.
1. Employees, the lockout.
2. The government, shutting down the airline
3. Partner airlines like BA & CX
4. Tourism Australia
5. Politicians with the Senate Inquiry
6. Passengers, stranding them with the shutdown.
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Ben Sandilands -(Plane Talking) at Crikey has provided a thoughtful Sunday morning piece, probably worth a couple of minutes. Just saying....
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Sydney:The bad-tempered battle..
Partner airlines like BA & CX
Gulf carriers eye prize as Australia airlines duke it out | GulfNews.com
Analysts expect Virgin Australia to funnel some funds into its business class offering, upgrading onboard and lounge facilities as part of its drive to lure customers from Emirates-backed Qantas.
Analysts expect Virgin Australia to funnel some funds into its business class offering, upgrading onboard and lounge facilities as part of its drive to lure customers from Emirates-backed Qantas.
The perception is blurred somewhat me thinks.
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ABC Insiders even commented today that it seems the boot is on the other foot for a change (referring to QF). Maybe you do reap what you sow, if you p..ss everyone off, sucker the shareholders for a while and then (if reports are correct) about to report a large loss, ask for help and everyone says..."who cares".
Pity about all the collateral damage in the process who deserved better.
Pity about all the collateral damage in the process who deserved better.
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Emirates-backed Qantas
EK sat back and watched the Jetstar Asian franchise plan gut the finances of QF, moved in and picked the carcass clean. Nice work AJ and team. One has to live in hope of the existence of karma.
"Man is the only animal that can be skinned more than once."
-- Jimmy Durante
Let us summarise: Firstly the EK tie-up is best described as a "Cashless Takeover"
1. Long-Haul Low-cost hasn't worked since Freddy Laker was a young man
2. 65% market share is exactly that market share, no profit maximising, if that was the case we should see record profits and dividends(not unlike ANZ)
3. Full-service carriers earn 2 to 2.5 times the revenue than a low cost carrier that is why everyone is eating Qantas for breakfast.
Game, Set and Match!
Well done AJ!
1. Long-Haul Low-cost hasn't worked since Freddy Laker was a young man
2. 65% market share is exactly that market share, no profit maximising, if that was the case we should see record profits and dividends(not unlike ANZ)
3. Full-service carriers earn 2 to 2.5 times the revenue than a low cost carrier that is why everyone is eating Qantas for breakfast.
Game, Set and Match!
Well done AJ!
It always ends this way, as McKinsey and Co. taught.
The reason Qantas is a basket case is because a Board and senior management have limited time and if that has to be spread across several business units then by definition less time is taken on each decision anD over time the quality of decisions is worse than those made be a better focused single entity competitor.
I knew Qantas was done for the minute they started their raft of Asian Jetstar ventures and Dixon started to talk about leveraged synergies and similar double talk and I said so at the time.
Qantas Board meetings by now must be very unpleasant affairs. Each member of the "Qantas group" will be vying for Board time and attention and some will be at screaming level in their quest fork resources. The result? A series of sub optimal ****ed up decisions as the Board and management try and please the majority and end up pleasing no one, least of all the shareholders.
To succeed, there must be ONE airline, Qantas, and everything else needs to be either rolled in, sold or shut down. That way their is ONE Board, dealing with ONE strategy, ONE set of financials and ONE set of customers. Even then you will segment the business, but all the lies, bull**** and artificial contrivances used to differentiate Jetstar from Mainline disappear overnight, and with it perhaps three layers of very, very expensive management.
Furthermore, while I mostly agree with Ben Sandilands, he misses one salient point about leasing costs - they have to be paid each month whether you made money or not and in a downturn, they will kill you.
My prediction is that Qantas will be sold for pennies to Emirates fairly soon. I would expect that QF have already briefed both sides of Parliament to the effect that the Qantas Sale Act needs to be amended to either facilitate the current behaviour to continue with foreign money or to allow a "capital restructure" to take place - which is a euphemism for Emirates to take a controlling interest.
Make no mistake, QANTAS, as you know it, is already dead. The blather about Virgin is not going to stay the executioners blade.
.
The reason Qantas is a basket case is because a Board and senior management have limited time and if that has to be spread across several business units then by definition less time is taken on each decision anD over time the quality of decisions is worse than those made be a better focused single entity competitor.
I knew Qantas was done for the minute they started their raft of Asian Jetstar ventures and Dixon started to talk about leveraged synergies and similar double talk and I said so at the time.
Qantas Board meetings by now must be very unpleasant affairs. Each member of the "Qantas group" will be vying for Board time and attention and some will be at screaming level in their quest fork resources. The result? A series of sub optimal ****ed up decisions as the Board and management try and please the majority and end up pleasing no one, least of all the shareholders.
To succeed, there must be ONE airline, Qantas, and everything else needs to be either rolled in, sold or shut down. That way their is ONE Board, dealing with ONE strategy, ONE set of financials and ONE set of customers. Even then you will segment the business, but all the lies, bull**** and artificial contrivances used to differentiate Jetstar from Mainline disappear overnight, and with it perhaps three layers of very, very expensive management.
Furthermore, while I mostly agree with Ben Sandilands, he misses one salient point about leasing costs - they have to be paid each month whether you made money or not and in a downturn, they will kill you.
My prediction is that Qantas will be sold for pennies to Emirates fairly soon. I would expect that QF have already briefed both sides of Parliament to the effect that the Qantas Sale Act needs to be amended to either facilitate the current behaviour to continue with foreign money or to allow a "capital restructure" to take place - which is a euphemism for Emirates to take a controlling interest.
Make no mistake, QANTAS, as you know it, is already dead. The blather about Virgin is not going to stay the executioners blade.
.
short flights long nights
Well, if it happens, Emirates certainaly has aircraft on order to modernise the Qantas fleet, and I suspect a lot of people willing to come home and fly them.
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EK used to have a policy of not buying airlines and not joining alliances. They did buy Sri Lankan, strip it of its routes and left it a carcass till it was re-acquired by the Sri Lankan government. I don't think this is the future you want for QF.