So you need a new fleet Leigh?
Anyone else see parallels with the banking RC?
CBA is not, in my experience, the worst, but I could level almost all the same comments I’ve seen made in recent weeks at Qf’s atrocious ‘management’.
Another day, another damning indictment. Commonwealth Bank’s culture has been found to be blinded by its own profitability, ruled by an incestuous mates club too chummy to challenge or escalate problems and too many snouts in the trough taking generous remuneration packages despite serious customer failings.
Only pilots eligible for the MOU could go, and they could only fill the JQ MOU slots on the QF list. However, those 6 slots were withdrawn as the MOU only specified command positions. No FO.
Previously there were some JQ pilots awarded MOU positions as S/O but the contract only allowed for a move to F/O or Capt so the positions were revoked.
I don’t know about this latest offer but I’m pretty sure they are permitted to take F/O positions. Whether anyone would want to is a very different matter.
FLEET UPDATE
The Qantas Group has today announced an order for six additional Boeing 787-9s. This will take Qantas International’s Dreamliner fleet to 14 by end of calendar year 2020 and will enable the accelerated retirement of its last six 747s5. (See separate release.)
The 787-9 is around 20 per cent more fuel efficient than the 747 and has significantly lower maintenance costs6. Combined with the airline’s A380s, A330s and 737s, the additional 787s will allow for further utilisation improvements to the Qantas International network.
The first of these additional 787-9s is due to arrive in the first half of FY20. There is no change to capital expenditure guidance for FY18 and FY19.
Our strong performance allows us to invest in more Dreamliners, which are a lot more efficient than the 747s they replace and give our customers a better experience. They also open up new network options and will be an important part of our success moving forward,” Mr Joyce added
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What’s the impact on capacity of 236 seats on the 787 vs 364 seats on the 747?
The capacity reduction will be limited because our 787s have less down time for maintenance, so will be flying more. And with a fleet of 14 787s we’ll be able to pattern them a lot more efficiently.
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Hypothetical questions are raised in my mind. Why can't the soon to be ex JQ A320's be sold on the second hand market instead of being rolled into Network? Is it likely there a difference between the book value & the achievable resale value? If there is a difference, could this be the the source of the capital issues?
Lots of assumptions in those thought bubbles, just musing.
Lots of assumptions in those thought bubbles, just musing.
There is a crossover where old versus new is considered necessary, a large input in the consideration is the fuel price.
Simply put if fuel is cheap enough, it makes sense to hold on to older aircraft, despite supposed higher maintenance and operating costs.
With the IATA required reductions in CO2 difficult to achieve with the current fleet metrics, fleet renewal was increasingly obvious.
The fact that the RPK costs 64% more to deliver across the Pacific is empirically relevant when considering the relative urgency of the renewal.
It may well be, contango in the fuel price and an increase in the cost of capital forced their hand.
We were prepared to consider the narrative of RealityCzech with the caveat that they 'didn't' need a fleet renewal if fuel price was low. We surmise that the narrative of Relaityczech is more an industrial theme that has been used many times before. Qantas has demonstrated a liking for fear and doubt. Scaring the staff is an airline management preoccupation. Effectively QED, Qantas needed a new fleet.
Effectively a book value of zero represents the accountant perception. Depreciation schedules vary enormously from jurisdiction to jurisdiction. Economic life in an asset is a different metric.
Given the current JQ fleet of A320 are older and may in most jurisdictional contexts have a close to zero book valu,e perhaps the only place they can go realistically is into yet another subsidiary?
Jeps: When too much reduction is barely enough!
RD: Why ‘Aged’ A320’s ‘forced’ into another entity? Repeat the depreciation process? If they are ‘sold’ isn’t there a corresponding profit negating benefits? Sorry to seem obtuse...
Fundamentally I understand the need for accounting ‘practices’ (as my accountants bill attests, I use enough myself) but I have issues when companies devote more time to a ‘perfect’ accounting position than operating the business.
RD: Why ‘Aged’ A320’s ‘forced’ into another entity? Repeat the depreciation process? If they are ‘sold’ isn’t there a corresponding profit negating benefits? Sorry to seem obtuse...
Fundamentally I understand the need for accounting ‘practices’ (as my accountants bill attests, I use enough myself) but I have issues when companies devote more time to a ‘perfect’ accounting position than operating the business.
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From employee Q&As
What’s the impact on capacity of 236 seats on the 787 vs 364 seats on the 747?
The capacity reduction will be limited because our 787s have less down time for maintenance, so will be flying more. And with a fleet of 14 787s we’ll be able to pattern them a lot more efficiently.
What is is about “daily services” that they don’t understand?!
According to the FAQs because the 787s require less maintenance they'll be able to fly more passengers. Not sure how that works given the 747s pretty much arrive everywhere and turnaround and depart immediately after (except for HND) but I'm no genius.
Reckon the training system's under pressure now? This announcement has just dropped AT LEAST 260 additional movements (minus a few inevitable retirements) in to the system in the next two and a half years. That's roughly 10 a month on average, more if the RIN results in displacements and further residuals. Not sure how the system will cope. Not well, would be my conclusion at this point.
Reckon the training system's under pressure now? This announcement has just dropped AT LEAST 260 additional movements (minus a few inevitable retirements) in to the system in the next two and a half years. That's roughly 10 a month on average, more if the RIN results in displacements and further residuals. Not sure how the system will cope. Not well, would be my conclusion at this point.
Be interesting to see how the RIN from this pans out. Obviously some will go to the 787, but a high percentage would have the numbers to displace from the 380.
What will happen to the Santiago and Joburg flights with no 747's? Also will this be a significant down gauge on the Pacific routes currently operated by 747's? Whatever new routes the additional 787's explore will surely be a reduction in existing routes operated by 747's. You can't have it both ways.
I think you may be a bit off there.
Previously there were some JQ pilots awarded MOU positions as S/O but the contract only allowed for a move to F/O or Capt so the positions were revoked.
I don’t know about this latest offer but I’m pretty sure they are permitted to take F/O positions. Whether anyone would want to is a very different matter.
Be interesting to see how the RIN from this pans out. Obviously some will go to the 787, but a high percentage would have the numbers to displace from the 380.
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My bet is zero chance of the ER's to be gone by 2020. Think back to the Classic and how long they hung around, so Zero chance.
But it looks good on paper to the market stating that they are getting rid of those expensive pesky gas guzzlers.
This morning Sky Business were talking oil to potentially spike through $100per barrel by years end so if this becomes reality QF have been smart pre-empting the market by this news. If the oil price doesn't come to fruition then they lose nothing and can potentially extend the ER's life expectancy.
Sometimes things aren't always black and white.
But it looks good on paper to the market stating that they are getting rid of those expensive pesky gas guzzlers.
This morning Sky Business were talking oil to potentially spike through $100per barrel by years end so if this becomes reality QF have been smart pre-empting the market by this news. If the oil price doesn't come to fruition then they lose nothing and can potentially extend the ER's life expectancy.
Sometimes things aren't always black and white.
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This morning Sky Business were talking oil to potentially spike through $100per barrel by years end so if this becomes reality QF have been smart pre-empting the market by this news.
Sorry we politely disagree, pre-emptive it is not. Any oil industry analyst has been warning that contango is very much part of the term structure of crude oil pricing for the last 12 months. Qantas are forward hedging fuel, but they are hedging into a bigger headwind.
The point of this thread is that they have been way behind on this issue having only been spared because of the low fuel prices, which now is accepted are no longer so low.
Qantas need a new fleet.
Last edited by Rated De; 2nd May 2018 at 04:56.
Literally most of the 600 787 airliners flying have been protecting their operators from rising fuel included CASK for the last five years!
Sorry we politely disagree, pre-emptive it is not. Any oil industry analyst has been warning that contango is very much part of the term structure of crude oil pricing for the last 12 months. Qantas are forward hedging fuel, but they are hedging into a bigger headwind.
The point of this thread is that they have been way behind on this issue having only been spared because of the low fuel prices, which now is accepted are no longer so low.
Qantas need a new fleet.
Sorry we politely disagree, pre-emptive it is not. Any oil industry analyst has been warning that contango is very much part of the term structure of crude oil pricing for the last 12 months. Qantas are forward hedging fuel, but they are hedging into a bigger headwind.
The point of this thread is that they have been way behind on this issue having only been spared because of the low fuel prices, which now is accepted are no longer so low.
Qantas need a new fleet.
Please....end the suspense. Who is 'we'?
The ‘We’ could be almost any one of Qantas’ loyal employees. If ‘we’ can be discredited for asking questions with simple answers (because business IS simple and complex answers are rubbish - trust me on that) then so much the better.
It’s the questions that are important. The questioners should be welcomed. A transparent operator has a simple (and believable! Take note RC!!) answer to every question. Nor should the questioner be ridiculed.
It’s the lack of sensible and simple answers that have led to so many problems.
It’s the questions that are important. The questioners should be welcomed. A transparent operator has a simple (and believable! Take note RC!!) answer to every question. Nor should the questioner be ridiculed.
It’s the lack of sensible and simple answers that have led to so many problems.