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Virgin does a Qantas!

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Old 6th May 2014, 00:35
  #21 (permalink)  
 
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Jetstar was initially sold as a blocking move to prevent some other operator from starting up in the LCC market sector. At the time industry pundits pointed to every other LCC subsidiary of a legacy carrier eventually harming the parent carrier.

Only the consultants thought it a good idea to host an agent of "creative destruction" . More of such innovative bull****e can be found in the management press of the day. Another obvious fallacy was something called "first mover advantage" used to justify rushing into ill-considered Asian franchises.

Master Caution I agree with most of your points. I would like to see JQ International fold and have all the aircraft return to QF. Possibly they could run a small fleet on Phuket and Bali.

I cannot see QF domestic ever replacing Jetconnect...their cost base is too low, especially for the NZ domestic sectors.

As far as rebranding upscale the Jetstar offshore operations: Hmmmm. Cunning plan. The LCC space in Asia is rapidly becoming a disaster for all the players, but even SQ is bleeding in the full service sector. As is MH and Thai. There may not be enough revenue to warrant staying in business there at all.

Anyway...all of this is moot with the current board/executive and top two layers of yes-men.
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Old 6th May 2014, 00:39
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Not all about Qantas...

What are Tiger's fleet plans? That should be revealing of JB's intentions.
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Old 6th May 2014, 00:52
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Austral..cus, Jetconnect don't operate nz domestic sectors, just trans Tasman. Also not sure about the low cost base, maintaining a separate (nz) AOC for such a small operation is pretty costly.
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Old 6th May 2014, 01:01
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Aaah! My apologies. I thought they did domestic over there. Who does? Jetstar?

In any event...yeah, QF could likely do the Tasman cheaper. But that would negate some expensive consultant's per project.
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Old 6th May 2014, 03:01
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I believe that JB told VANZ pilots during EBA negotiations, that he would never pay them VAA rates.

It would seem that both QF & VA have the same thought processes for the required cost base to make money on the Tasman, which has been a bloodbath over the decades, mainly caused by competition driven over capacity.

I think that Jetconnect is probably doing very well for QF.

And yes, Jetstar do NZ domestic.
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Old 6th May 2014, 03:09
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Jetconnect is doing very well for QF at what cost?

The cost savings would have to be massive to offset the inefficiencies created in mainline.

The problem with inheriting Dixons silo structure of individual businesses units is one entity may look cheaper on paper but it's increased the overall cost to the group.
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Old 6th May 2014, 03:57
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True. But the difficulty is in comparing apples with apples.

Jetstar possibly have the better system for costs, where everything is done from OZ & the aircraft are VH registered.

However, arguably it is better to crew from NZ, as it allows 2 returns per day, with no overnights if operating from a port that has crew based in it. Not that Jetconnect don't do overnights, but that is due to flights being operated into NZ ports that don't have a base.

Productivity is another issue, with NZ allowing a 737-800 to be crewed with only 4 F/A's & also having less restrictive flight & duty time limitations.

I'm would imagine that management have done the numbers & they stack up. But I guess that one can never be too sure in that regard.
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Old 6th May 2014, 17:09
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Oakape - Virgin have been crewing -800s with 4 crew for years! When I was at QF, they'd often do it if someone called in sick. When I was at Alliance (BNE based!) and leased the airwork 737-300 (several years ago), and they went so far as to train us as "NZ based crew" under the NZ aoc - so that they could run the norfolk flights with 3 crew.

Dare I mention the $23,000 base wage for cabin crew?

Aussie airlines will do anything to operate aircraft at NZ costs!
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Old 6th May 2014, 17:45
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For those of you arguing the 'fairness' aspect (eg. JQ = qantas bashing, why not so with TT)...

Be realistic - Qantas management has run a campaign spanning the better part of two decades, targeting wages and conditions amongst it's own staff. As an ex BNE SH QF flightie, I worked numerous flights to HKG and SIN whereby, amongst the crew, there were too many contracts/ ebas / agreements with the company to count or make any sense...

Yes, we were all doing the same job, but we were all being screwed by management. The same management that has driven said airline into the ground.

The difference between QF and VA - Borghetti actually understands the power of the LCC. YES - there is a place for tiger at OOL (If you don't get that one, you've missed a lot!).

The difference between Borghetti and Joyce is the overall proportion of budget vs full service.

Anyone who has spent more than a few minutes behind the iron curtain on any OOL flight will understand that those wired coke heads love a cheap flight, just about as much as those wanky caviar munching bignoters love the opportunity for an upgrade to Business.

Borghetti has a better balance than Joyce - easily.
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Old 6th May 2014, 22:48
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I find it hard to believe that VANZ truly is cheaper anymore than VAA on trans-tasman and island flying.

Running a separate AOC down here with separate management and doubling up on everything. Adding to this is the Kiwi dollar strengthening, the contracts crew are on strengthening, inefficient trips with paxing sectors across the ditch both ways, returns out of Australia (with associated hotel and transport costs). Then there is the issue about mid duty sickness/fatigue with either delays, cancellations or VAA stepping in.


Yes at present their flight and duty limits are less restrictive, but Air NZ certainly don't do those returns. VANZ has already lost island flights to VAA with more to come. Business class is on the way so that rules out the excuse why some routes maybe onshored back to Aussie.


I'm afraid to say it, but it's just a matter of time before the true picture is realised and the operation is packed up and operated more efficiently by VAA.
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Old 7th May 2014, 21:54
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Wow... Nothing like supporting the nz op.
Isn't that why ch has said they can save about 1mil doing schedules back in nz, given the inefficiencies created since it changed hands.
We "lost" the Island flights... By that you mean Honiara and Port Moresby, mainly because of the lack of business class wasn't it?
And the cost base may appear similar but is that factoring the elevated lease costs we pay to big brother for our aircraft by the tune of 100k/ month extra each... Returns are best done on the Tasman from nz because you can start earlier in nz due to time change, our rostering and scheduling is best done in nz, as has been shown by the recent examples in increased paxing.
If it didn't suit someone higher up, we wouldn't be here, who knows how long we will be but it's a good job, and to be fair, the cc fatigue issue is a real problem. That is their new toy and they are milking it hard, but mostly it's not truly fatigue and someone in our management needs to sort it out because it is costing heaps. Especially when you have a whole crew in the back go fatigued, then flights get canceled, then said cc say they are fit to operate because they can see what they have done. We don't really have that many fatiguing duties.
The odd one, but the real ones are the Rarotonga pairings, and multiple nadi returns ex Sydney with min rest.

At least they are hiring some FO's shortly and hopefully some upgrades to come also.
Good job, great people and if someone doesn't like the job, then there is the door. I for one enjoy it and am not considering leaving anytime soon.
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Old 8th May 2014, 00:51
  #32 (permalink)  
 
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Virgin have been crewing -800s with 4 crew for years! When I was at QF, they'd often do it if someone called in sick.
NZ regs allow an -800 to be operated by 4 cabin crew in normal circumstances & by 3 crew in the case of illness away from a crew base. Oz doesn't. This is because NZ requires 1 F/A for every 50 pax & Oz requires 1 F/A for every 36 pax.
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Old 8th May 2014, 04:36
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Incorrect. QF routinely crews 4 cabin crew on some domestic B737-800 flights in Oz.
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Old 8th May 2014, 06:33
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Oakape you are incorrect, Jetstars 320's are operated with 4 cabin crew in Aus.
Used to be 5 with the ability to downgrade to 4 in the event of a crew member going U/S at an outport. Somehow Jetstar managed to get the 1 CC to 50 pax in as the norm.
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Old 8th May 2014, 08:29
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Well, there you go! Things just keep on changing!

Looked it up (perhaps should have done that in the first place!) & concessions started in 2006 & looks like there was a parliamentary inquiry in 2011. However, it doesn't appear that that has led to a rule change as yet.

Thanks guys.

Last edited by Oakape; 8th May 2014 at 20:24.
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Old 8th May 2014, 20:01
  #36 (permalink)  
 
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Sorry guys, Oakape is right.
NZ 1 cabin crew per 50 pax, Aus 1 cabin crew per 36.
The only way to crew some aircraft with certain crew numbers is to reduce pax.
This is not company specific but Aussie LAW.

Unless things have changed very recently.
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Old 8th May 2014, 20:46
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The only way to crew some aircraft with certain crew numbers is to reduce pax.
Or apply for a type specific variation from CASA. Been in place with a few operators for some years now.
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Old 8th May 2014, 21:20
  #38 (permalink)  
 
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Wink

6. Rebrand JQ Asia as QF on the existing cost base.
Be careful what you wish for! If that was successful, do you really think the rebranding would stop just in the ASIA devision of JQ?
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