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QF AUS Letdown: Australia's highest paid Company CEO.

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QF AUS Letdown: Australia's highest paid Company CEO.

Old 18th Sep 2019, 07:32
  #41 (permalink)  
 
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Old 18th Sep 2019, 07:56
  #42 (permalink)  
 
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Open the Oxford dictionary at hypocrite and there he is resplendent
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Old 18th Sep 2019, 08:43
  #43 (permalink)  
 
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Originally Posted by Rated De View Post
Open the Oxford dictionary at hypocrite and there he is resplendent

That page isnít in his dictionary
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Old 18th Sep 2019, 09:50
  #44 (permalink)  
 
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The Australian government didn’t bail out Ansett, hasn’t really provided too much help for QF and has let foreign carriers dominate the international market. The only decision recently that has benefitted domestic carriers was the decision not to allow foreign cabotage in 2015, although there were plenty in cabinet at the time who wanted it and they’ll probably try again some time soon.
Quite right Dr.

The Open skies and privatised airports have created inflow that a home grown airline has had to combat. Qantas deploying Jetstar is a rational, albeit misguided at times response.
Just as the private airport operators in Brisbane wanted up front millions from Qantas for a runway available in seven years was nothing more than thinly veiled extortion.

With respect to the US market, their protectionism is exceptional, all dressed up in nationalistic rhetoric.

Students of the industry will recall that the Deregulation of the US airline industry in 1978 produced initial competition before returning to a comfy oligopoly, where airlines of scale (with few exceptions) dominated both airfares and capacity..
Deregulation US style saw some nation states in Europe remove capacity constraints, opting for a "free market" with their US competitors.
Unfortunately as one of the first to try found out, the scale of the US carriers decimated their home grown airline.
The US love competition, provided of course their scale means they are the apex competitor.

Qantas is the same, crying out against monopoly price behaviour when they act exactly the same in their markets.

Sadly, with the regions most highly remunerated CEO leading the charge, relevant issues of competition and market structure are drowned out by staggering duplicity.
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Old 18th Sep 2019, 11:04
  #45 (permalink)  
 
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Astute observers might have noticed Little Napoleon in an attempt to justify the indefensible obscene remuneration, let slip...

“It absolutely costs a lot more than it should to land an aircraft at these airports,” Mr Joyce said. “For us, the Qantas Group, airport charges are now the highest charges after fuel expenses, aircraft and wages.
It sure ain't a shortage of funds paid to under-performing management that is stopping them buying aircraft, nor is it pilot salary, despite their attempts at narrative.

It appears under a little pressure, Little Napoleon does wander off script.

https://www.news.com.au/travel/trave...deec81bfe14a6b
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Old 18th Sep 2019, 13:11
  #46 (permalink)  
 
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Folks,
The facts are really beyond question, the unregulated monopoly pricing allowed major Australian airports owners is a serious economic problem
At the National Press Club today (and I thought Joyce spoke well and for once I agreed with almost everything he said) he laid out in detail what the intransigence of Perth airport on charges is costing WA economy across the categories, and I know, independently, that the figures he presented are credible.
He illustrated what the difference is compared to Heathrow --- all charges are independently set --- NO unregulated monopoly profits. He well and convincingly made the case that Australian airport charges generally are way out of line.
The Perth "case" is true, across the board, the way he ripped into Canberra airport made many in the room squirm, as he put the detailed case for the high airfares into/out of Canberra --- showing in detail the airport charges and their proportion of typical fares, and why no Jetstar in Canberra --- airport charges make it un-viable, and I believe him, in this case.
Tootle pip!!
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Old 18th Sep 2019, 13:56
  #47 (permalink)  
 
Join Date: Aug 2019
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Sitting in a JQ roadshow recently, the point was raised that whilst executive remuneration ran far ahead of market values, pilot wages (at JQ at least) sat below, and increasingly so as time progresses. We're all beholden to the Qantas 3% wage policy we're told, their hands tied because of the 'threat to the business'. The excuses trotted out to justify this were quite something to behold I thought.
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Old 19th Sep 2019, 06:11
  #48 (permalink)  
 
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Had to laugh reading Joyce caring about how much it costs to park and get a coffee at the airport ! Haha he thinks that we believe this absolute tripe! Just trying to screw down airport pricing so they can increase their profits coming into some economic headwinds ...... they wonít be lowering airfares in line with airport pricing at all.
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Old 20th Sep 2019, 00:41
  #49 (permalink)  
 
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"My earnings are set by the shareholders"...pretty easy to do when you are the 15th biggest shareholder....
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Old 20th Sep 2019, 01:38
  #50 (permalink)  
 
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From a martin Wolf opinion piece today: Why rigged capitalism is damaging democracy

As the US essayist HL Mencken wrote: “For every complex problem, there is an answer that is clear, simple and wrong.” Pay linked to the share price gave management a huge incentive to raise that price, by manipulating earnings or borrowing money to buy the shares. Neither adds value to the company. But they can add a great deal of wealth to management. A related problem with governance is conflicts of interest, notably over independence of auditors.
Qantas have been spending enormous sums buying back shares to enrich management and not investing in more to improve productivity with newer fuel efficient aircraft. Exactly the problem Wolf argues more fully in the article. Joyce sits atop a monopoly gifted to him - through control of domestic slots and terminals and he is going to screw everyone else over to reward himself obscenely and well beyond any economic justification simply because he can.

A peruse of the Sydney Airport Slot Administration Manual will reward the reader with the "how" slots are very carefully controlled into the Jewel In the Crown. Control SYD, and you control the domestic network profits. There is a very cosy relationship between QF, Virgin and Rex. Shareholding and voting rights of Airport Co-ordination Australia Pty Ltd (ACA), section 3.2.1, page 12 is the meat and potatoes.
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Old 20th Sep 2019, 01:41
  #51 (permalink)  
 
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Originally Posted by Fliegenmong View Post
Sad.....as someone who has ties back to the TAA days...I find it all very abohorrant.....I don't beleive for a mniute anyone woke up one morning and decided to 'ground an airline' on a random Saturday morning, and that was the end for me....not saying anyone lied...but accommodation was already arranged for many I believe....

I do all I can to avoid the 'Rat' now....supporting the QF group is to support AJ and his demonstrably over the top remuneration.

But I am one very very small little fishy indeed...but I do act on principle where possible, and avoinding QF group travel is my very own less than miniscule protest....somone has to.

I'm all for the Gay rights movement etc. but painting planes with rainbows is somewhat rather tacky, and if it's about equality.....then you have it AJ, start protesting about NOT holding the Mardi Gras...it's a cake ands eat it too thing.

Not overly religious myself, but I do support Israel Folaus (?) right to express his beliefs....to try & thwart his religious freedom is the same oppresion from which the Gay community sought to liberate itself from....so in essence Hypocritical to the core

My humble travel protests will never harm the good and honest folk at QF...but it brings a smile to my face when I know my $ does not translate to $ for Alan.....thankfully for the 'Coal Face' staff, that will not either...you can always count on an ignorant and apathetic Australian populace / electorate to ensure AJ has market balance...and a whole bunch of of 'soft corruption' affilates who have no scrupples when it comes to 'Chairmans lounge memberships' ....nowadays I feel fortunate not to be a member of the Australian 'Class' that expects 'Chairmans' membership.

My name is not 'tainted' and I made my (very small) principled stand.

I sleep well...
Like I said to a mate of mine, this is the guy that got into a alliance with a state owned airline of which said state throws homosexuals in jail.

I wonder where his concern for social issues was then.
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Old 20th Sep 2019, 01:42
  #52 (permalink)  
 
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Originally Posted by LeadSled View Post
Folks,
The facts are really beyond question, the unregulated monopoly pricing allowed major Australian airports owners is a serious economic problem
At the National Press Club today (and I thought Joyce spoke well and for once I agreed with almost everything he said) he laid out in detail what the intransigence of Perth airport on charges is costing WA economy across the categories, and I know, independently, that the figures he presented are credible.
He illustrated what the difference is compared to Heathrow --- all charges are independently set --- NO unregulated monopoly profits. He well and convincingly made the case that Australian airport charges generally are way out of line.
The Perth "case" is true, across the board, the way he ripped into Canberra airport made many in the room squirm, as he put the detailed case for the high airfares into/out of Canberra --- showing in detail the airport charges and their proportion of typical fares, and why no Jetstar in Canberra --- airport charges make it un-viable, and I believe him, in this case.
Tootle pip!!
In Australia, we pay top dollar to be inconvenienced.
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Old 24th Sep 2019, 06:20
  #53 (permalink)  
 
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he put the detailed case for the high airfares into/out of Canberra --- showing in detail the airport charges and their proportion of typical fares, and why no Jetstar in Canberra --- airport charges make it un-viable
The airport charges apply per pax, independent of the airline. A $300 QF airfare has $25 in airports fees attached and a $125 JQ airfare would have the same $25 attached. How many pax will buy the $125 JQ rather than the $300 QF? That's what Joyce is protecting by not putting JQ into CBR.
Additionally, the front end of those QF aircraft are most likely all filled very lucratively and exclusively by the taxpayer. The $300 seats down the back are just the gravy. Why give those away?
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Old 24th Sep 2019, 08:20
  #54 (permalink)  
 
Join Date: May 2019
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Only one person has done more to screw Australian airline industry and its workers and they buried him a few months ago as a National Treasure. Go figure, a hero of the beer swillers. AJ will always remind me of a lemon meringue pie.
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Old 24th Sep 2019, 08:40
  #55 (permalink)  
 
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Originally Posted by Traffic_Is_Er_Was View Post
The airport charges apply per pax, independent of the airline. A $300 QF airfare has $25 in airports fees attached and a $125 JQ airfare would have the same $25 attached. How many pax will buy the $125 JQ rather than the $300 QF? That's what Joyce is protecting by not putting JQ into CBR.
Additionally, the front end of those QF aircraft are most likely all filled very lucratively and exclusively by the taxpayer. The $300 seats down the back are just the gravy. Why give those away?
Albeit an extreme example, but demand elasticity (price sensitive customers) is the Achilles heel of the low fare airline model: It requires continued low price (thus high load factor) and is very difficult to fill if the price rises. That price rise can be either an attempt to raise yield (profit margin) or taxes.

Little Napoleon unwillingly is showing all the weakness of the model: It can't just fly where Qantas does, despite the wet dreams of IR as it can't generate yield.
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Old 24th Sep 2019, 08:53
  #56 (permalink)  
 
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It requires continued low price (thus high load factor) and is very difficult to fill if the price rises.
AJ is not even giving the CBR residents the choice by establishing a JQ base line. What he is disguising is that there are probably not enough TTTs (Tits Tatts n Thongs ie price sensitive customers) in CBR to warrant JQ - high loads would be inconsistent. The CBR demographic is more likely full-service.
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Old 24th Sep 2019, 09:05
  #57 (permalink)  
 
Join Date: Jul 2013
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Canberra is growing rapidly and has a lot more people than well off senior public servants flying there. I have used Tiger and it is usually packed. All Joyce has to do is add on $25 to the price he would be charging normally if it is a deal breaker.
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Old 24th Sep 2019, 14:41
  #58 (permalink)  
 
Join Date: Sep 2002
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Watching National Press Club Address Alan Joyce and Paul Scurrah in iview


https://iview.abc.net.au/show/nation.../NC1911C033S00
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