QF and JQ split
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QF and JQ split
Any truth to the talk of a split between these two?
Do you think JQ will start flying to LAX and take routes from QF?
Do you think JQ will start flying to LAX and take routes from QF?
I’d say Qantas Group would be looking at what success Scoot has offering east coast to Europe for $678 return (SYD/MEL to Berlin) if it’s successful, they might have no choice but to respond and compete or surrender Europe bound market share. The idea isn’t foreign to the JQ 787 pilots I’ve spoken with. Not sure about LAX, if there’s no other LCC’s on the route I don’t see why there would be the need for JQ to be involved.
As a total split between the two and them starting to compete with each other? Not a chance. JQ would be toast within weeks without big brother's support.
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Probably more like what Wesfarmers is doing with Coles, spin it off. Jetstar is really now at the scale and level of profitability where it should be demerged and managed as it’s own.
The only thing stopping that is Qantas is not and has never been in what should be the best interests of shareholders. Especially under the current regime, could not give two hoots about its shareholders. They seem to be more interested in incentivizing each other on how well the pissing contest with Virgin goes.
The only thing stopping that is Qantas is not and has never been in what should be the best interests of shareholders. Especially under the current regime, could not give two hoots about its shareholders. They seem to be more interested in incentivizing each other on how well the pissing contest with Virgin goes.
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I hope they go it alone there is no reason JQ couldn't survive without "big brother", they would most likely be better off and so would the crew..
As a total split between the two and them starting to compete with each other? Not a chance. JQ would be toast within weeks without big brother's support.
- There has never been a tangible reported profit from any (offshore) associate AASB128 entity. All of these entities require substantial capital. 'Big brother' provide that. JQ Asia is consolidated under AASB127 into the JQ segment as Qantas claim control. What is very interesting is the structure of their lease obligations. Funding to cover the operating shortfall comes from Qantas NOT Mr Choo (The alleged majority owner) Without capital would these businesses actually survive is a good question.
- JQ is not broken into two operating segments under AASB 8. Management choose to report Qantas this way and despite JQ operating as many aircraft as big brother they refuse the same transparency. Wonder why?
- Any organisation undertaking due diligence on a 'purchase' would be extremely interested in 'materiality thresholds'. These thresholds are internally set by executive management. Such detail is not required to be presented in Consolidated Accounts under AASB 10. Any purchaser would investigate this relationship fully to see who pays for what.
Probably more like what Wesfarmers is doing with Coles, spin it off. Jetstar is really now at the scale and level of profitability where it should be demerged and managed as it’s own.
Thread Starter
I'm guessing it's going to happen as I heard some very large figures being thrown about for the work required to split it. Who knows what will be happen.... it will be interesting to see the outcome.
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There is NO chance this will happen.
The 2 brands will continue to act in concert as sword and shield. It makes it VERY difficult (especially domestically) for challengers in both the premium and low-cost market segments.
PG
The 2 brands will continue to act in concert as sword and shield. It makes it VERY difficult (especially domestically) for challengers in both the premium and low-cost market segments.
PG
Thread Starter
I suspect what this thread is discussing and what has actually been discussed are two very different things. What Rated De has mentioned in conjunction with an incoming fleet replacement might lead to more accurate conclusions....and the costs involved....you don’t split a golden nugget unless you’re forced to.
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I suspect what this thread is discussing and what has actually been discussed are two very different things. What Rated De has mentioned in conjunction with an incoming fleet replacement might lead to more accurate conclusions....and the costs involved....you don’t split a golden nugget unless you’re forced to.
AT
How about it QF START a new subsidiary called Qantas Domestic(TAA) , a brand new Airline with new staff at different pay rates , direct entry crews , would they need to sell JQ to do this , maybe !
would sure ease the training costs in Qantas as they gradually wind down the 737 ops !
would sure ease the training costs in Qantas as they gradually wind down the 737 ops !
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How about it QF START a new subsidiary called Qantas Domestic(TAA) , a brand new Airline with new staff at different pay rates , direct entry crews , would they need to sell JQ to do this , maybe !
would sure ease the training costs in Qantas as they gradually wind down the 737 ops !
would sure ease the training costs in Qantas as they gradually wind down the 737 ops !
Let me see..."different pay rates"..like, pay engineers and pilots less pay in a market where supply is rapidly dwindling?
Winding down 737 ops..oh, that's right, we just got 6 more to fly.
Since when did "creating" a new airline reduce training costs?
Direct entry..from where?? 457 Visas? Of course!!
This isn't Lucerne, the only thing you didn't say was non-unionised labour.
Pfffffttttt.
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Could just as readily been planted from Coward street.
With superlatives exhausted, an engineered fight with Canberra airport and a month to run on the FY, a bit of 'froth' for the ASX might help!
Qantas had the opportunity to do just that with an embedded 734 operation, a gift from the Australian taxpayer. 734, crewed by the same already costed pilots, a fresh coat of paint and high density interiors, they had the Low Fare Airline almost ready to fly.
Instead what they preferred was an entire greenfield operation, all designed to lever downwards terms and conditions.
With superlatives exhausted, an engineered fight with Canberra airport and a month to run on the FY, a bit of 'froth' for the ASX might help!
How about it QF START a new subsidiary called Qantas Domestic(TAA) , a brand new Airline with new staff at different pay rates , direct entry crews , would they need to sell JQ to do this , maybe !
would sure ease the training costs in Qantas as they gradually wind down the 737 ops !
would sure ease the training costs in Qantas as they gradually wind down the 737 ops !
Instead what they preferred was an entire greenfield operation, all designed to lever downwards terms and conditions.
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Could just as readily been planted from Coward street.
With superlatives exhausted, an engineered fight with Canberra airport and a month to run on the FY, a bit of 'froth' for the ASX might help!
Qantas had the opportunity to do just that with an embedded 734 operation, a gift from the Australian taxpayer. 734, crewed by the same already costed pilots, a fresh coat of paint and high density interiors, they had the Low Fare Airline almost ready to fly.
Instead what they preferred was an entire greenfield operation, all designed to lever downwards terms and conditions.
With superlatives exhausted, an engineered fight with Canberra airport and a month to run on the FY, a bit of 'froth' for the ASX might help!
Qantas had the opportunity to do just that with an embedded 734 operation, a gift from the Australian taxpayer. 734, crewed by the same already costed pilots, a fresh coat of paint and high density interiors, they had the Low Fare Airline almost ready to fly.
Instead what they preferred was an entire greenfield operation, all designed to lever downwards terms and conditions.
Yawn.
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- Think 457 Visa
- Jetconnect in VH registered aircraft
- Network to operate A320
- Comfort letters from Unions (sarc is off)
Contract season anyone?
Even if the company was trying to manufacture some leverage I'm not sure pilots in general would place any weight on it...in any company. Its simple, people will move to the position that gives that individual the best lifestyle proposition and in times of a pilot shortage, in Qantas at least, that means pilots will spend minimal time on a type they consider inferior. So manufactured crisis or not, it's going to take a genuine downturn for this structural predicament to return to equilibrium. Perhaps, there is a better way? At the moment I'm not sure many people care if the can is kicked down the road. More pay and/or more promotion. It's really simple and the industrial relation teams have their work cut out for themselves.
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That would make sense to the arseclowns running this outfit. Expand something that has never made a dollar of profit. Bravo.