MERGED: Alan's still not happy......
"This truly is an iconic business that tugs at the heartstrings of a lot of people, and especially the employees that work there."
As for EK dealing with the Mascot lunatics.... Words are simply not enough, what cretin even thought their preschool thought bubbles could have worked? Someone came up with them, someone else thought they were worth supporting and then someone else (and the board) approved it... The whole cataclysmic disaster has been patently obvious to anyone with an IQ bigger than their shoe size for nigh on TEN YEARS!!
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Mr Evans said the partnership with Emirates was performing to Qantas' financial expectations in light of a tough international market with an oversupply of capacity.
It only gets tough in the market place when you know you are "behind the eight ball". That means that your competitors have the edge against you and a competent board, after due diligence, would activate a strategy in quick time to regain what was lost.
Understanding the factors that have gained you your greater share of the market than your competitors in the past is the starting point. Understanding your customers and WHY they like to fly with the airline is a KEY part of this.
It seems to have eluded this board exactly what those factors were, and a failed strategy ensued.
This not news to anyone, but the magnitude of the expected losses IS !
No hope of a recovery when Gareth Evans makes statements such as the quote above.
In line with expectations given a couple of credible excuses why the brilliant strategies articulated just months ago have been compromised. Events beyond our control, unforeseen circumstances etc etc.
I just read the entertaining book " The Psychopath Test". It reminds the reader that there are an above average number of defective individuals in senior business roles, and that one of their hallmark features is being unable to accept blame for the consequences of their actions. There are many more traits that would be all too familiar to we who read this thread in despair.
I just read the entertaining book " The Psychopath Test". It reminds the reader that there are an above average number of defective individuals in senior business roles, and that one of their hallmark features is being unable to accept blame for the consequences of their actions. There are many more traits that would be all too familiar to we who read this thread in despair.
As the war of words between America and Russia hots up, how smart does sending all your maintenance and overhaul overseas and outside your immediate and direct local control look today?
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As the war of words between America and Russia hots up, how smart does sending all your maintenance and overhaul overseas and outside your immediate and direct local control look today?
I assume Virgin would be in alot of trouble then?
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Sunfish
As the war of words between America and Russia hots up, how smart does sending all your maintenance and overhaul overseas and outside your immediate and direct local control look today?
Last edited by VH-Cheer Up; 8th Aug 2014 at 04:45.
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Strategy
It seems pretty simple to me.
By Shrinking QANTAS, and growing Jetstar they are reducing the liabilities of legacy airline conditions such as leave, superannuation,pay awards, over staffing, maintenance costs,infrastructure costs and probably a myriad of other things.
When Jetstar becomes a bigger airline than QANTAS ie if it gets to the point that Qantas is a quarter of the size of Jetstar. They could sell off say 75% to 90% of Jetstar which is the greater component at this stage of the QANTAS group and not beholden to the QANTAS sales act, essentially they will have bypassed the Qantas sales act and for the greater part got rid of 75% of their legacy conditions.
This is obviously a long term strategy which can only be accomplished over a long time, maybe a decade or two
The only problem with this strategy is that Jetstar is not making the projected profits and growth to financially accomplish this, and the danger and risk which is being realised is that the billion dollars that they have stashed away to support this strategy notwithstanding a shortage of income from Jetstar coupled with higher than expected set up costs and regulatory difficulties involved with launching Jetstar Japan and Hong Kong, plus fierce completion from Virgin are factors that are bleeding the group dry.
Consequently this high risk strategy may potentially bankrupt the whole QANTAS group.
They have rolled the dice and set the train in motion, and like any gamble or runaway train, the end result may by now be well and truly out of their hands.
Just a theory, which if close to the truth, probably seemed like a good plan at the time !
By Shrinking QANTAS, and growing Jetstar they are reducing the liabilities of legacy airline conditions such as leave, superannuation,pay awards, over staffing, maintenance costs,infrastructure costs and probably a myriad of other things.
When Jetstar becomes a bigger airline than QANTAS ie if it gets to the point that Qantas is a quarter of the size of Jetstar. They could sell off say 75% to 90% of Jetstar which is the greater component at this stage of the QANTAS group and not beholden to the QANTAS sales act, essentially they will have bypassed the Qantas sales act and for the greater part got rid of 75% of their legacy conditions.
This is obviously a long term strategy which can only be accomplished over a long time, maybe a decade or two
The only problem with this strategy is that Jetstar is not making the projected profits and growth to financially accomplish this, and the danger and risk which is being realised is that the billion dollars that they have stashed away to support this strategy notwithstanding a shortage of income from Jetstar coupled with higher than expected set up costs and regulatory difficulties involved with launching Jetstar Japan and Hong Kong, plus fierce completion from Virgin are factors that are bleeding the group dry.
Consequently this high risk strategy may potentially bankrupt the whole QANTAS group.
They have rolled the dice and set the train in motion, and like any gamble or runaway train, the end result may by now be well and truly out of their hands.
Just a theory, which if close to the truth, probably seemed like a good plan at the time !
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They have rolled the dice and set the train in motion, and like any gamble or runaway train, the end result may by now be well and truly out of their hands.
They are gambling thousands of good people's jobs with a poor strategy and the board and management team will get away with it whether it works or not, in my view, corporate Australia is sick.
I have seen that kind of assessment written before. The question that always bubbles to the surface though is: why? If you were about to embark on a long game of reducing terms and conditions you could do it quicker and easier with dialogue (and a long-running propaganda game). The end result would be better, you would capture hearts and minds along the way and you'd still have an airline.
I'd wager that properly staged, without that asinine lock-out, most of Jetstar and the idiotic Asian sideshows, they could have had us on 10% less money for 10% more work by now. And a better fleet, and a billion & a half more in the bank and a credit rating and some credibility.
From my foxhole I am glad they didn't, but I despair for all of my junior colleagues caught out there in the open.
I still reckon the entire sorry spectacle has been performed by looters as Management Theatre, and the show has been underwritten by unwitting mums and dads courtesy of their retirement funds. The circle is completed by the fund managers whooping it up with Clifford and the boys in the Chairmans Lounge, first class cabins and wherever fine Rockpool grub is sold. It ain't their money on the line after all, but it is their butts in those swanky first class seats.
I'd wager that properly staged, without that asinine lock-out, most of Jetstar and the idiotic Asian sideshows, they could have had us on 10% less money for 10% more work by now. And a better fleet, and a billion & a half more in the bank and a credit rating and some credibility.
From my foxhole I am glad they didn't, but I despair for all of my junior colleagues caught out there in the open.
I still reckon the entire sorry spectacle has been performed by looters as Management Theatre, and the show has been underwritten by unwitting mums and dads courtesy of their retirement funds. The circle is completed by the fund managers whooping it up with Clifford and the boys in the Chairmans Lounge, first class cabins and wherever fine Rockpool grub is sold. It ain't their money on the line after all, but it is their butts in those swanky first class seats.
Last edited by Australopithecus; 8th Aug 2014 at 07:06. Reason: "Fine Rockpool grub": this is a hypothetical construct, I just realised.
short flights long nights
I will say this again. What I fail to understand is how Joyce still has a job. Everything he has suggested, pondered about or tried has failed. From Red Q to Jetstar Hong Kong.
But he is still there. So the board must think he is doing a wonderful job at destroying Qantas.
So the question we all want answered is why do they want to do this? Because the way I see it, they might not just take down Qantas, but the whole Qantas group.
But he is still there. So the board must think he is doing a wonderful job at destroying Qantas.
So the question we all want answered is why do they want to do this? Because the way I see it, they might not just take down Qantas, but the whole Qantas group.
short flights long nights
I must say, he has been somewhat invisible of late.
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SOPS.
AJ couldn't even get traction on his "personal threat" claims.
I believe there is a lot of posturing going on in the background.
Potential CEO's & or Chairmans are waiting for AJ to hit coffin corner first.
They don't want to get caught in AJ's self induced upset, they want to see the upset happen & then come in to initiate the recovery manoeuvre.
MC
AJ couldn't even get traction on his "personal threat" claims.
I believe there is a lot of posturing going on in the background.
Potential CEO's & or Chairmans are waiting for AJ to hit coffin corner first.
They don't want to get caught in AJ's self induced upset, they want to see the upset happen & then come in to initiate the recovery manoeuvre.
MC
Well yeah, they are keeping him in the cupboard until 28/8, after which he will have to suffer the ignominy of a $ ten million payout, then we will get Qantas CEO MK III. I note that Dick Headeth has been fronting all the communications lately.
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Let's see who turns up to deliver the bad news when presenting the financial report
Jetstar Group chief executive Jayne Hrdlicka has defended the low-cost carrier's investments in Asia, saying the region represents a vital part of the future of the airline over the long term.
"We can sit back and dismiss all of this as an Asian distraction or we can play an active role in the world's largest growing aviation market, and that is our choice," she said at the CAPA Australia Pacific Aviation Summit on Friday, responding to critics of the investments, which have been mostly loss-making to date. "Asia is anything but a distraction."
Jetstar has arms in Singapore, Vietnam and Japan and is seeking approvals to set up Jetstar Hong Kong. In February, it froze growth in its Singapore arm as a result of tough market conditions that have led to losses.
"It was a clear signal the market was overcooked," she said. "All low-fares carriers in Singapore have since announced similar moves. South-east Asia is on the path to correction, which is great."
Ms Hrdlicka said the outlook for Jetstar Japan, which has been operating for two years, was particularly bright. The carrier is now the fourth largest domestic carrier in Japan in a market that grew by more than 8 per cent last year as a result of the introduction of budget airlines.
However, Jetstar Japan has yet to produce a profit. Ms Hrdlicka said Jetstar was realistic about the ability of the Asian ventures to do so within a few years of starting up.
"We can sit back and dismiss all of this as an Asian distraction or we can play an active role in the world's largest growing aviation market, and that is our choice," she said at the CAPA Australia Pacific Aviation Summit on Friday, responding to critics of the investments, which have been mostly loss-making to date. "Asia is anything but a distraction."
Jetstar has arms in Singapore, Vietnam and Japan and is seeking approvals to set up Jetstar Hong Kong. In February, it froze growth in its Singapore arm as a result of tough market conditions that have led to losses.
"It was a clear signal the market was overcooked," she said. "All low-fares carriers in Singapore have since announced similar moves. South-east Asia is on the path to correction, which is great."
Ms Hrdlicka said the outlook for Jetstar Japan, which has been operating for two years, was particularly bright. The carrier is now the fourth largest domestic carrier in Japan in a market that grew by more than 8 per cent last year as a result of the introduction of budget airlines.
However, Jetstar Japan has yet to produce a profit. Ms Hrdlicka said Jetstar was realistic about the ability of the Asian ventures to do so within a few years of starting up.
my bold
Read more: Jetstar defends loss-making investments in Asia
Read more: Jetstar defends loss-making investments in Asia
WOW, great strategy, these guys will say anything, the media hook line and sinker again, oh that's right it was a CAPA organised event, say no more...
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Of less import than many posts here the followup to my expectation of QANTAS QF1 recently was fulfilled and exceeded.
Departed on time, perfectly clean, no service issues - ran like a dream.
Changed to Emirates in Dubai and to be quite frank their performance levels have slipped markedly. Boarding was both late and relatively disorganised and the cabin crew were average at best. Constant confusion, it seemed like there was a grand total of 2 crew members who knew what they were doing and had to take the initiative to tell the others who were gormlessly hanging around what to do - and by that I mean things like "go and get a refill tray" followed by "keep serving the drinks from where you served the last person" after a trolley had run out of something.
Probably just a one off but certainly the QANTAS crew had it all over Emirates from a customer service perspective.
Departed on time, perfectly clean, no service issues - ran like a dream.
Changed to Emirates in Dubai and to be quite frank their performance levels have slipped markedly. Boarding was both late and relatively disorganised and the cabin crew were average at best. Constant confusion, it seemed like there was a grand total of 2 crew members who knew what they were doing and had to take the initiative to tell the others who were gormlessly hanging around what to do - and by that I mean things like "go and get a refill tray" followed by "keep serving the drinks from where you served the last person" after a trolley had run out of something.
Probably just a one off but certainly the QANTAS crew had it all over Emirates from a customer service perspective.
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Actually, one thing EK did win on - CC uniforms. Exactly why QF staff are dressed like a trashy LCC I will never know. The Emirates crew uniform was far more polished.
Will see what happens on return journey.
Will see what happens on return journey.