VA pilots worried about employment 2021
From Financial Review.
Qantas chief executive Alan Joyce has never been one to waste a crisis. And since the novel coronavirus completely shuttered the travel industry, you’d expect an airline boss to feel a little jumpy.
Nevertheless, Joyce’s performance on Friday morning television – in which he warned the Morrison government against bailing out “the badly managed companies which have been badly managed for 10 years”, i.e. Virgin Australia – was exceptionally inelegant.
He was overreacting to a comment piece in that day’s The Australian which imagined that “some companies may end up having to be nationalised, if even only temporarily” and that “Virgin could be one example” because “there is no way [the government] will allow Australia to return to a virtual single-carrier environment in a post-virus world”.
Joyce’s initial comments on Sky – that Canberra “can’t pick winners and losers; whatever aid is given to one particular company … has to be given to everybody in that sector” – would’ve sufficed perfectly. But Joyce’s shortcoming has always been in craving a needless fight.
On a conference call with prorogued Qantas employees later the same day, their CEO reportedly urged them (with their abrupt surfeit of spare time) to petition their federal MPs against this supposed bailout of Virgin.
Qantas CEO Alan Joyce is now campaigning against a Virgin bailout. Renee Nowytarger
It’s a low-quality way for the national carrier to conduct itself in the tumult of the worst health and economic crisis Australia has ever seen. Such is Joyce’s bloodthirst for his competitor’s death rattle.
For lucrative reasons. After the collapse of Ansett in 2001, Qantas CEO Geoff Dixon creamed off $4.4 billion in net profits (after tax) in seven years as a virtual monopoly (even despite the highest oil prices in history), until Joyce replaced him in 2008.
Short memory
By Joyce’s seventh year, he’d delivered $2.6 billion of accumulated losses and was begging Tony Abbott to pick winners and losers by extending him a $3 billion loan guarantee. And after 11 years, Joyce has accumulated net profits of only $1.75 billion – a factoid easy to forget when you see his remuneration ($92 million and counting), but crucial to remember when he critiques other companies “which have been badly managed for 10 years”.
Six years since he asked the federal government to save him, Joyce now reckons that “when good companies have managed their position very well, the government should let them manage their way through this”.
His sudden aversion to any Commonwealth assistance is astonishing but welcome. Qantas could scarcely accept public cash only five months since his chairman Richard Goyder boasted that “at the end of this latest buyback, we’ll have bought back almost one-third of our shares since 2015 – the most of any company in the ASX All Ordinaries”.
Yep, that’s $3.2 billion of excess cash (on top of dividends) it returned to shareholders, or almost how much passenger revenue Qantas will suddenly forgo this March, April and May. Handing it over (while reducing its own share count) massively juiced the airline’s share price and total shareholder returns, upon which Joyce’s bonuses are explicitly calculated. Thus management is incentivised not to save cash for a rainy day – nor, indeed, to reinvest profits productively, as Treasurer Josh Frydenberg pleaded in August.
It's marvellous news that Qantas still has “plenty of bandwidth to last a very, very long time” through the corona-crisis. And we’d be the last to pretend that Virgin’s relative financial infirmity is anything but its own doing. Joyce can be forgiven his lapse of judgment in these times of cognitive overload, but let's not shoehorn post-crisis competition policy into his tactical manoeuvrings for advantage.
Qantas chief executive Alan Joyce has never been one to waste a crisis. And since the novel coronavirus completely shuttered the travel industry, you’d expect an airline boss to feel a little jumpy.
Nevertheless, Joyce’s performance on Friday morning television – in which he warned the Morrison government against bailing out “the badly managed companies which have been badly managed for 10 years”, i.e. Virgin Australia – was exceptionally inelegant.
He was overreacting to a comment piece in that day’s The Australian which imagined that “some companies may end up having to be nationalised, if even only temporarily” and that “Virgin could be one example” because “there is no way [the government] will allow Australia to return to a virtual single-carrier environment in a post-virus world”.
Joyce’s initial comments on Sky – that Canberra “can’t pick winners and losers; whatever aid is given to one particular company … has to be given to everybody in that sector” – would’ve sufficed perfectly. But Joyce’s shortcoming has always been in craving a needless fight.
On a conference call with prorogued Qantas employees later the same day, their CEO reportedly urged them (with their abrupt surfeit of spare time) to petition their federal MPs against this supposed bailout of Virgin.
Qantas CEO Alan Joyce is now campaigning against a Virgin bailout. Renee Nowytarger
It’s a low-quality way for the national carrier to conduct itself in the tumult of the worst health and economic crisis Australia has ever seen. Such is Joyce’s bloodthirst for his competitor’s death rattle.
For lucrative reasons. After the collapse of Ansett in 2001, Qantas CEO Geoff Dixon creamed off $4.4 billion in net profits (after tax) in seven years as a virtual monopoly (even despite the highest oil prices in history), until Joyce replaced him in 2008.
Short memory
By Joyce’s seventh year, he’d delivered $2.6 billion of accumulated losses and was begging Tony Abbott to pick winners and losers by extending him a $3 billion loan guarantee. And after 11 years, Joyce has accumulated net profits of only $1.75 billion – a factoid easy to forget when you see his remuneration ($92 million and counting), but crucial to remember when he critiques other companies “which have been badly managed for 10 years”.
Six years since he asked the federal government to save him, Joyce now reckons that “when good companies have managed their position very well, the government should let them manage their way through this”.
His sudden aversion to any Commonwealth assistance is astonishing but welcome. Qantas could scarcely accept public cash only five months since his chairman Richard Goyder boasted that “at the end of this latest buyback, we’ll have bought back almost one-third of our shares since 2015 – the most of any company in the ASX All Ordinaries”.
Yep, that’s $3.2 billion of excess cash (on top of dividends) it returned to shareholders, or almost how much passenger revenue Qantas will suddenly forgo this March, April and May. Handing it over (while reducing its own share count) massively juiced the airline’s share price and total shareholder returns, upon which Joyce’s bonuses are explicitly calculated. Thus management is incentivised not to save cash for a rainy day – nor, indeed, to reinvest profits productively, as Treasurer Josh Frydenberg pleaded in August.
It's marvellous news that Qantas still has “plenty of bandwidth to last a very, very long time” through the corona-crisis. And we’d be the last to pretend that Virgin’s relative financial infirmity is anything but its own doing. Joyce can be forgiven his lapse of judgment in these times of cognitive overload, but let's not shoehorn post-crisis competition policy into his tactical manoeuvrings for advantage.
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i have to agree with what your saying, even as an employee I don’t agree with taxpayers propping up VA. Why should they VA is totally stuffed financially - this is not the employees doing, how is it not trading insolvent right now?
The mis management has been guided by the board and chairwoman. Anyone whom disagreed divested their share holdings (Air NZ) or was promptly shown the door (JT). The current chairwoman is silent.
Do tell how It can survive any length of time. When 5.7billion came in revenue they still managed to “burn” effectively 1 million a week.
The Naysayers continued to tell us, nah it’s all good we have 1 billion in cash.
You’ll burn that 960million $ AUD pretty quick on leases and other commitments/debt I assume are written in USD.
The rot continues today Non EBA staff only being asked to take one month LWOP at “their”leisure over the next 6months, whilst frontline staff are stood down.
That’s great I’m glad the social team has been “stood up”
FFS cupcakes all round Yeahhhhhh it’s international women’s day, yup that’s what’s important when we are drowning throw us another bull**** distraction to get behind.
The icing on the cake is QQ still flying wet leases with with VA crew and airframes grounded.
Who cares about Joyce, save your own company.
The mis management has been guided by the board and chairwoman. Anyone whom disagreed divested their share holdings (Air NZ) or was promptly shown the door (JT). The current chairwoman is silent.
Do tell how It can survive any length of time. When 5.7billion came in revenue they still managed to “burn” effectively 1 million a week.
The Naysayers continued to tell us, nah it’s all good we have 1 billion in cash.
You’ll burn that 960million $ AUD pretty quick on leases and other commitments/debt I assume are written in USD.
The rot continues today Non EBA staff only being asked to take one month LWOP at “their”leisure over the next 6months, whilst frontline staff are stood down.
That’s great I’m glad the social team has been “stood up”
FFS cupcakes all round Yeahhhhhh it’s international women’s day, yup that’s what’s important when we are drowning throw us another bull**** distraction to get behind.
The icing on the cake is QQ still flying wet leases with with VA crew and airframes grounded.
Who cares about Joyce, save your own company.
Yes we all saw that. Can only speak for myself, I respect your freedom to post on an anonymous forum.
I’m not going to apologise for the behaviour of those whom berated you, your a big boy.
I’m not going to apologise for the behaviour of those whom berated you, your a big boy.
Wow indeed.If you think any of us needed you to highlight said mismanagement....well,dead wrong about that for a start.Share price falls we can check ourselves,if we need to.
What got you caned was your obvious enjoyment of the stress the staff at VA are under,across all job descriptions,including aircrew,which given your stated history,is little hard to understand.
But,go ahead...knock yourself out,your completely entitled to have your say,whatever the cost.
What got you caned was your obvious enjoyment of the stress the staff at VA are under,across all job descriptions,including aircrew,which given your stated history,is little hard to understand.
But,go ahead...knock yourself out,your completely entitled to have your say,whatever the cost.
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I think the whole VA and JB slamming has been done to death now. We get it, it was revenge and ego. They are not the only mismanaged business around. They are undergoing a transformation from misjudgment across many categories. You don’t start to see any form of stability until a 5 years into a transformation. They are not far out of the first year.
Moving forward, it’s clear a Virgin and Qantas Mark 2 will look differently. Both will have cash reserves wipes. The government will clearly offer loans to both.
The A330s probably won’t return with Virgin. The 747 clearly either with QF.
Moving forward, it’s clear a Virgin and Qantas Mark 2 will look differently. Both will have cash reserves wipes. The government will clearly offer loans to both.
The A330s probably won’t return with Virgin. The 747 clearly either with QF.
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Whilst I agree with the Fin article, Alan does love a fight, he is being insensitive and probably should step back, his logic is sound.
To argue that a failing / weak business should be given life support to the disadvantage of previously healthy businesses is unfair, it picks favourites and would be tantamount to ‘profiteering from a crisis’ in a warped way.
Moreover, could the Australian Government afford such an approach? What if we were talking about Coles with 100,000 staff vs. Woolies?
Affordable consistency and fairness should be the story.
To argue that a failing / weak business should be given life support to the disadvantage of previously healthy businesses is unfair, it picks favourites and would be tantamount to ‘profiteering from a crisis’ in a warped way.
Moreover, could the Australian Government afford such an approach? What if we were talking about Coles with 100,000 staff vs. Woolies?
Affordable consistency and fairness should be the story.
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Kia Ora
Alliance flying has been stopped. From the AQZ annoucement:
Alliance Aviation Services Limited (ASX Code: AQZ) TRADING UPDATE AND COVID-19 REPONSE NO. 2 Virgin Australia (VA) Wet Lease AgreementIn response to the unprecedented changes to domestic airline operations required by Commonwealth, State and Territory Governments, VA has approached Alliance Aviation Services Limited (The “Company” or “Alliance”) to request a suspension of services provided under the existing Wet Lease Agreement.VA has confirmed the last of the services to be operated prior to the suspension will be as of close of operations on Tuesday, 24th March 2020. Services impacted will be all from Brisbane to the following destinations:
•Alice Springs•Cloncurry•Emerald•Mount Isa•Port Moresby•Rockhampton. Details of schedule changes affecting currently booked passengers will be provided directly from VA to their passengers.The impact of this suspension of services will be to reduce block hours by 4,500 on an annualised basis for the period of the suspension. The terms relating to the suspension of the agreement are currently being negotiated between VA and Alliance. Alliance is currently reviewing the impact of this reduction on operational staff and where appropriate the Company’s various leave provisions will be enacted where it is determined there are surplus staff. Regular Public Transport (RPT)Given the requirements of the various governments on “Non-Essential Travel”, continued operations of RPT services from Brisbane to Bundaberg, Gladstone and Port Macquarie will be reviewed in detail over the next few days and a further ASX announcement released once the Company has been provided with a clearer understanding of the requests of Government.The Company owes its very existence to regional Australia and any decisions taken to reduce services under the current circumstances will not be taken lightly
•Alice Springs•Cloncurry•Emerald•Mount Isa•Port Moresby•Rockhampton. Details of schedule changes affecting currently booked passengers will be provided directly from VA to their passengers.The impact of this suspension of services will be to reduce block hours by 4,500 on an annualised basis for the period of the suspension. The terms relating to the suspension of the agreement are currently being negotiated between VA and Alliance. Alliance is currently reviewing the impact of this reduction on operational staff and where appropriate the Company’s various leave provisions will be enacted where it is determined there are surplus staff. Regular Public Transport (RPT)Given the requirements of the various governments on “Non-Essential Travel”, continued operations of RPT services from Brisbane to Bundaberg, Gladstone and Port Macquarie will be reviewed in detail over the next few days and a further ASX announcement released once the Company has been provided with a clearer understanding of the requests of Government.The Company owes its very existence to regional Australia and any decisions taken to reduce services under the current circumstances will not be taken lightly
Hmmm.An idiot ay?
What would you call some one who posts multiple speculatory comments about an airline’s future,and possible demise,on a pilots website,while plainly enjoying the process,at an extremely stressful time for all its employees,then,when a couple of people finally say ‘Steady on..’,uses some bulls**t caveat like,’best of luck to the pilot group’ to excuse their own behaviour?
My ‘trust’ is in the operational people in my organisation and the machines I operate,the rest I leave to the Masters of the Universe.
I’ve met a few crew from Air NZ over the years,pilots and engineers,and found them all great people and exceptional operators.Any personal opinion I might or might not have about how Air NZ might have been managed,however uninformed,hasn’t changed that,despite your own efforts.
And maybe if you’d spent a bit more time in the private sector,without the safety net of a government job,and had a company or two disappear from underneath you,you might have a little more insight into what’s happening on the operational side of a company under pressure.......bru.
What would you call some one who posts multiple speculatory comments about an airline’s future,and possible demise,on a pilots website,while plainly enjoying the process,at an extremely stressful time for all its employees,then,when a couple of people finally say ‘Steady on..’,uses some bulls**t caveat like,’best of luck to the pilot group’ to excuse their own behaviour?
My ‘trust’ is in the operational people in my organisation and the machines I operate,the rest I leave to the Masters of the Universe.
I’ve met a few crew from Air NZ over the years,pilots and engineers,and found them all great people and exceptional operators.Any personal opinion I might or might not have about how Air NZ might have been managed,however uninformed,hasn’t changed that,despite your own efforts.
And maybe if you’d spent a bit more time in the private sector,without the safety net of a government job,and had a company or two disappear from underneath you,you might have a little more insight into what’s happening on the operational side of a company under pressure.......bru.
It has pretty much died off today around the traps. Not VA, but I had 20 up to Sydney and 30 back. Spoke to another guy flying for the other lot and he had 10 up to Sydney and 12 back.
One of my flights tomorrow to another city has 9 people. The return I can’t even count on one hand. Tomorrow I assume will be my last day at work for quite a while.
One of my flights tomorrow to another city has 9 people. The return I can’t even count on one hand. Tomorrow I assume will be my last day at work for quite a while.
Last edited by PoppaJo; 23rd Mar 2020 at 12:02.
Difficult times for all. But they will get better, as they always do. I wish all of you much strength and resilience.
For what it’s worth, that old chestnut of a fake Latin motto :”Nil Carborundum Bastardum” has always brought a smile to my face in difficult times and given me much needed resilience.
For what it’s worth, that old chestnut of a fake Latin motto :”Nil Carborundum Bastardum” has always brought a smile to my face in difficult times and given me much needed resilience.
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It has pretty much died off today around the traps. Not VA, but I had 20 up to Sydney and 30 back. Spoke to another guy flying for the other lot and he had 10 up to Sydney and 12 back.
One of my flights tomorrow to another city has 9 people. The return I can’t even count on one hand. Tomorrow I assume will be my last day at work for quite a while.
One of my flights tomorrow to another city has 9 people. The return I can’t even count on one hand. Tomorrow I assume will be my last day at work for quite a while.