How Would YOU Run QF?

[f1yhigh]

As the title says, you have now been appointed as the new QF CEO, what would you do for the short term and for the long term?

Making this thread just to get an idea of the direction people want QF to head in etc

[Ollie Onion]

Cut 15% of operating costs, tell the staff that there is a payfreeze due to the world economy, preside over a big profit and award myself $23 million in pay. I would then leave and live out my years somewhere quiet :-)

[Maggie Island]

The Purge

Purge the corporate ranks, if VA can cut 750 staff at the drop of a hat I bet theres a lot more on QFs corporate welfare.

[dragon man]

Get the front line staff off side, treat the customers like crap with an outdated product, devalue their loyalty points, not replace the ageing fleet then pay myself $85 million while I have accomplished this.

[Blueskymine]

I’d turn it into a democratic company.

The board is selected by peers from each division of the company. The CEO is elected for a fixed term in a similar manner.

The CEO isn’t elected by the popular vote, else you’d have someone from the most populous division constantly winning. It’d be a similar system to the College vote in America. You’d have to win the most divisions in the company.

Upon appointment to the company. You’re issued shares. Every year of service you’re issued more shares as a bonus with company results.

Eventually the airline will be owned by the real stake holders. The employees.

[pilotchute]

I would buy a copy of "How to run an airline for dummies" and read it. Then do what it says.

[Rated De]

Originally Posted by pilotchute

I would buy a copy of "How to run an airline for dummies" and read it. Then do what it says.

There are shining examples of airline management and the books too.
Perhaps the simplest and most eloquent, was penned by the late Herb Kelleher. A real gentleman.

“A company is stronger if it is bound by love rather than by fear.” – Herb Kelleher

[Global Aviator]

That’s a no brainer...

A350XWBLRER to Red Q

Jetstar HKG to get the Max’s

Project Tequila sunrise launch direct flights to Ibiza.....



All cadets from the new schools to be LHS within 5 years on a fantastic new E scale..... vis a vis Red Q...

[Savage175]

George Costanza from Seinfeld probably has the best idea. Just take everything Joyce does, and do the exact opposite.

[Car RAMROD]

I would do everything that everyone on PPrune says we should do!
Everyone there are the real experts.

[PlasticFantastic]

I'd focus on maximising QF's comparative advantages, which I see as:

• dominant position domestically
• unique geography, that means QF can build a sizeable LH/ULH fleet
• customer loyalty for their international operations, driven by their strength domestically and QFF, and
• ability to focus QF on the premium market, because JQ is strong enough to cover the LCC market domestically and on short haul regional flights.

Based on that, I'd:

• keep pursuing Project Sunrise, to launch unique ULH routes that have no direct competition, command a yield premium, and build premium customer loyalty (ie loyalty among customers who are willing to pay for non-stop flights, who will often tend to also be premium customers for other flights)
• buy more small widebodies (789/NMA) for more competitive routes (LAX, YVR, Asia etc) to allow QF to capture premium traffic on routes like SIN/HKG/HND while also opening up more direct routes that bypass hubs
• pick up the NMA and/or 321XLR/LR to do the same out of ADL and PER (and maybe CBR and OOL in the future)
• keep expanding into premium leisure routes
• invest in lounges, greater availability of reward seats, and other things to increase customer loyalty
• hold off starting replacing the domestic fleet til the early/mid 2020s - they don't need a fleet advantage there, or any radical change in business plan
• and, bluntly, keep working on reducing costs on all fronts - head office, suppliers and staff - because this kind of strategy naturally results in higher CASK than packing A35Ks full through hubs, and only works if the RASK increase exceeds the CASK increase.

[Going Boeing]

The first three things that I would do is:

Stop all subsidies of JQ Intl,

Make QF Frequent Flyer pay a fair market price for redeemed seats, &

Re-write all the KPI's throughout management and staff to ensure that decisions are made for the long term viability of the company, and, FOR THE WELFARE OF THE PASSENGERS.

[mrdeux]

Sack everyone in HR. That should reduce the corporate ranks back to reasonable levels.

[morno]

Originally Posted by Going Boeing

The first three things that I would do is:

Stop all subsidies of JQ Intl,

Make QF Frequent Flyer pay a fair market price for redeemed seats, &

Re-write all the KPI's throughout management and staff to ensure that decisions are made for the long term viability of the company, and, FOR THE WELFARE OF THE PASSENGERS.

Where’s the proof of subsidies for JQ Int’l?

For crying out loud, you’re all one group. Why not think about the GROUP instead of just QF. What’s to say that QF operating some of the international flights that JQ does would be profitable?

[Paragraph377]

REMOVING THE VEIL

I would probably start by doing the following;

Report OTP honestly and truthfully; no more sneaky tricks, fudging figures, manipulating numbers and delay codes and creative reporting.

Implement full financial transparency; completely seperate QF and JQ on the books. No more creative accounting, cross pollination of maintenance, fuel, freight and catering costs when it suits them.

Full transparency and methodology to be produced showing Qantas fare price broken down by cost code. In other words, exactly what value of dollars are actually spent per ticket, on labor, fuel, airport fees, parts, etc.

Make all Executives disclose any conflict of interest which includes, but not limited to; themselves and family members who have vested interests in catering companies, ground handlers, uniform, suppliers, stationary suppliers, consultancy firms, accounting agencies, ANYTHING related to any direct, indirect, or third party provider/supplier to the airline. In other words folks, if you think these airline Execs only benefit from obscene salaries and bonuses, you need to wake up.

Full disclosure of HR methodology when it comes to employing or promoting people into certain positions. What was the process followed, who was involved, all evidence to be provided to an independent reviewer. No more jobs for the boys, mates rates, he has a cute ass so let’s hire him BS.

Implementing a robust strategy of restoring quality to the airline, a robust safety reputation, a reputable business class service, a reinvigorated Qantas Club which excludes dead****’s and bogans, and where possible a return to the Australian version of Qantas from around 2002.

[Going Boeing]

Morno, I am confident that my information that I shared about JQ Intl subsidies on other threads is accurate. If I posted hard info, Napoleon would have me facing 5 QC’s in a Law Court (yes, he paid for 5 of them to take on AIPA following his airline shutdown) & I obviously can’t afford that.

I do have a Group focus but the way the books are cooked to make the QF Frequent Flyer program & JQ Intl look good is not in the best interests of the Group or its shareholders.

[morno]

Originally Posted by Going Boeing

Morno, I am confident that my information that I shared about JQ Intl subsidies on other threads is accurate. If I posted hard info, Napoleon would have me facing 5 QC’s in a Law Court (yes, he paid for 5 of them to take on AIPA following his airline shutdown) & I obviously can’t afford that.

I do have a Group focus but the way the books are cooked to make the QF Frequent Flyer program & JQ Intl look good is not in the best interests of the Group or its shareholders.

So you have no proof?

[Chris2303]

Sell it to Air NZ

[Rated De]

1. Corporate Governance. Low threshold materiality audit, if need be internal to actually see who pays for what. Such an audit, internal if need be, would actually see which invoices are paid for whom and at what price the entity responsible has to pay for them.
2. Re-Work (as GB) suggested incentive structures. Perhaps with a ten year caveat.
3. Immediately replace CEO. The business needs a circuit breaker. The new CEO would, like Gordon Bethune and Rob Fyfe need to be consistent.Average CEO tenure is less than five years.
4. Actually dare to leave Fort Fumble. Mandate senior management work in areas of business outside Corporate. Pick the area, call centres, baggage, catering flight planning... Rob Fyfe did it.
4a. Board Clean out.

These steps will change culture.
5. Disengage the adversarial engagement model so wed to the past and Ian Oldmeadow.
6. Stop HR Mission Creep.

At this point the business has really not expended much capital, these changes are cultural, although it is conceded they take time to be effective. As staff at Continental in the Lorenzo era demonstrate, trust takes time to be earned.

7. Fleet strategy
This is where airline experienced people are needed. Presently fleet strategy is dictated by spreadsheet, telling only part the story.
The singles biggest improvement to fuel included CASK is fleet.

[Rated De]

Originally Posted by morno

So you have no proof?

JQ has a role. The expansion into longer stage length International means that any effective unit cost advantage is rapidly eroded. Add in the inability, due elastic demand to drive revenue growth and the International business cannot generate margin.

Morno, you may recall December 2013, Little Napoleon asking for $3billion AUD worth of taxpayer assistance, only to recant six weeks later?
The reason why Little Napoleon recanted was that Canberra asked them to conduct an audit similar on scope and style to point 1 above (# 20)...Qantas declined.
Interestingly, after a "confronting loss" in FY15, the business was "transformed" the very next year. The loss itself was largely a result of an impairment to the International Fleet (fleet write down). A paper not trading loss.

The "subsidiary" in Singapore is a curious business, Its source of profit isn't selling seats, rather it leases aircraft back to Jetstar. A curious arrangement.

Ever wonder why Jetstar Asia is reported in the Jetstar Group?
Much the same reason that Jetstar international is.