$1000 Bonus for Qantas Staff
 

Bloomberg

Qantas Says Full-Year Profit Rose On Travel Rebound

Aug. 19 (Bloomberg) -- Qantas Airways Ltd., Australia's biggest airline, said full-year profit rose 89 percent as the company cut costs.

Net income rose to A$648.4 million ($464 million), or 36 cents a share, in the year ended June 30, from A$343.5 million or 20 cents, a year earlier, the Sydney-based airline said in a statement to the Australian Stock Exchange. Sales fell to A$11.4 billion.

"The group responded extremely well to the myriad challenges it has faced over the past 12 months,''' the company said in the statement.

Chief Executive Geoff Dixon, 64, is aiming to cut costs by A$1.5 billion in costs in the next three years as Virgin Atlantic Airways, Singapore Airlines Ltd. and Dubai-based Emirates increase competition on some of the airline's busiest routes. He has also started a budget domestic unit to stop the loss of customers to Virgin Blue Holdings Ltd.

Qantas shares fell 16 cents, or 4.8 percent, to A$3.17 at 10:35 a.m. in Sydney.

Qantas said workers will be paid a one-off cash bonus of A$1,000.

Qantas was expected to A$657 million in the year ended June 30, according to the average estimate of 13 analysts surveyed by Thomson Financial.


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AAP

Qantas flying high on improved profit
August 19, 2004 - 11:06AM

Australia's flagship carrier Qantas Airways believes it can improve on its 2003/04 results in the current financial year after today reporting an 89 per cent jump in full year net profit.

Qantas today reported net earnings of $648.4 million for 2003/04, up $304.9 million from $343.5 million in the previous year.

It maintained its final dividend at a fully franked nine cents per share.

The airline also said that chief executive officer, Geoff Dixon, had agreed to continue in his role until July 1, 2007.

Qantas said the rapid escalation in the price of crude oil is a major factor facing the airline and the aviation industry worldwide.

However its hedging policy, the imposition of the fuel surcharge in May and the opportunity to increase the surcharge if oil prices continue to escalate, would provide a cushion for the group in 2004/05.

"The sharp increase in domestic capacity in recent months has added further pressure and, as expected, yields declined by up to ten per cent during July," the airline said.

"Load, however, was not affected in the face of this increased capacity and the group's domestic airlines are performing in line with expectations."

Qantas said taking these factors into account, allowing for the fact that it is still early in the financial year and provided market conditions do not deteriorate, the returns for the first six weeks of 2004/05, forward bookings and a continuation of efficiency gains "leads Qantas to believe it can improve on its 2003/04 result in 2004/05".

Qantas chief executive Mr Dixon said the record full year result was achieved in difficult conditions.

"The group responded extremely well to the myriad challenges it has faced over the past 12 months."

Mr Dixon said the main drivers of the 2003/04 were a gradual recovery in international flying which enabled international earnings before interest and tax (EBIT) to increase by $192 million or 92.8 per cent.

It was also driven by domestic operations with domestic EBIT increasing by $316.3 million or 141.8 per cent, while cost and efficiency savings of $512 million offset a flat revenue line still recovering from the effects of the war in Iraq and SARS.

A further factor was the continuation of a successful fuel hedging program that partly offset jet fuel prices which were 14.1 per cent higher than the previous year.

Mr Dixon said the difficult economic conditions still being experienced by the aviation industry, further distorted by widespread government ownership and subsidies, meant Qantas could not relent in its push for greater efficiencies in all of its business.

"This will continue to involve tough decisions such as an announcement in June that Qantas would establish a cabin crew base in London next year," he said.

Mr Dixon said among initiatives the airline had in place to meet challenges confronting the industry worldwide were its sustainable future program which aimed to reduce costs and provide efficiencies of a further $500 million in 2004/05 and another $500 million in 2005/06.

It also had in place fuel hedging and current and possible future fuel surcharges on fares, which will continue to offset to some degree increasing crude oil prices in 2004/05.

He said Qantas had spent around $2.0 billion in 2003/04 on new aircraft and product as part of an $18 billion, ten year re-equipment program which began in 2000/01.

This expenditure was covered by cashflow and Qantas would look to repeat that effort in 2004/05 as the re-equipment program continued.

Mr Dixon also said that since Jetstar started operations in May, the group had maintained a domestic market share above 65 per cent. According to the airline it was 66.7 per cent in July.

"Overall, the group continues to lower its costs while sustaining a yield premium over Virgin Blue of around 30 per cent," he said.

Qantas chairman Margaret Jackson also today announced that Mr Dixon had agreed to continue in his role until July 1, 2007.

His current contract was due to expire in December 2005.

"Qantas' performance has been outstanding under Geoff's leadership, a period that has been described as the most tumultuous in civil aviation history," Ms Jackson said.

"The board believes it is important that Geoff continue to provide leadership stability over the next three years while Qantas faces the ongoing challenges of the global aviation industry, implements a range of growth and efficiency programs and completes an internal restructure," she said.

Mr Dixon's new employment contract includes a fixed annual remuneration of $2.0 million which includes superannuation and is subject to annual review.

It also includes a cash bonus equal to 60 per cent of the fixed annual remuneration which is dependent on the company and Mr Dixon achieving agreed targets.

- AAP

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Seems like good news. Till you consider that we won't get any form of a raise and our jobs will continue to be attacked from both management above and scabs like Jetw@nker from below.

For the official QF announcements, you can try the ASX web site.

We live in interesting times.

Okay, well the $1000 is in his left hand, but keep an eye on his right hand!:suspect:

Just heard on the news about the $1000 bonus.

Does that apply to everyone at the Qantas Group, including Jetstar and Australian, or is it just Qantas (mainline)?

Why are they doing this, when at the same time they talk of having to make further savings in future?

Like everything else announced by Management, I'll believe the $1000 when I see it.

AAP

Qantas to pay staff $1,000 bonus
August 19, 2004 - 3:09PM

Qantas Airways Ltd said it will pay a $1,000 cash bonus to each staff member, after the airline reported a jump in annual net profit.

The airline said the bonus was in recognition of the staff contribution to the airline's 2003/04 profit results.

Qantas reported a net profit of $648.4 million for 2003/04, up $304.9 million from $343.5 million in the previous year.

The company said it would also commit $50 million over the next three years to initiatives that will assist staff to balance work and family commitments.

Chief executive Geoff Dixon said the bonus would be paid next week to all current permanent and fixed term staff employed in the Qantas Group in January 2004.

The bonus will apply equally to full and part time employees but will not be paid to executives who are already in an existing bonus scheme.

Mr Dixon said the Qantas board appreciated that the company owed much of its recent success to the commitment and dedication of its people.

The board also recognised that many staff were required to balance an increasingly busy range of work and personal commitments.

"We want to provide as much assistance as possible to help our people achieve a more satisfying balance," he said.

From Thursday, for all Qantas Group employees in Australia, the airline will increase paid maternity leave to ten weeks from six weeks, introduce ten weeks' paid adoption leave consistent with maternity leave, introduce one week's paid paternity leave and double the current entitlement to carers leave, to up to 10 days' leave per annum.

Mr Dixon said Qantas would also build two new child care centres, one in Melbourne and one in Brisbane, and evaluate child care needs for Qantas staff in other Australian cities where the company had a significant presence.

© 2004 AAP

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It wouldn't amount to 10% of the unpaid overtime put in by staff constantly badgered by Dixon’s “you all must work harder for less or we all die” Doom and Gloom rhetoric :yuk: and there will not be much left after tax :(

The $1000 is not a gift from Geoff, unless this is a new bonus. I am sure he would love to avoid any pay out. An employee reward scheme was voted on by the shareholders back in the '90's. The deal is, up to $1000 worth of Qantas shares to employees, should the company post a healthy profit, meeting certain targets. Note, it is $1000 worth of shares at the share price prior to ex dividend, so by the time you actually get the shares, they will be worth less then $1000. You can't sell them for 3 years. There have been several bonus share pay outs to employees, since the company privatized.

Yes, the $1000 is replacing the awarding of shares.
"
The bonus will be paid next week to all current permanent and fixed term staff employed in the Qantas Group in January 2004.
It will apply equally to full and part time employees but will not be paid to executives who are already in an existing bonus scheme.
At the same time, the Board has decided to suspend the Qantas Profit Share Scheme (QPS).
This decision follows a change in accounting rules that now require the value of employee shares issued under the QPS to be treated as an expense in the year they are issued – even though employees are not able to sell those shares for three years. We are examining alternative “at-risk” incentive approaches for future years. "

Just a thought!

The Qantas Staff Share scheme started about 9 years ago, when Qantas staff were issued with $1000 worth of Shares so if you got a $1000 then what’s a $1000 today worth in real terms?

:cool:

$1000 minus tax....at the top marginal rate? Or at least the individual's top rate.

what a bonus. Don't spend it all at once.

$600-odd bucks. whoopdidoo.

I'd almost bet my b@lls that there is a clause in these executives' packages, stating that when pleb. employees are paid a bonus, the execs' bonuses (which will be in the 10's - 100's of thousands...or millions in GOD's case) DOUBLE or TRIPLE!

Snouts in the trough AGAIN QF executives!!
http://www.stopstart.fsnet.co.uk/aircraft/halopig.gif

Hmmm.... the $1000 (gross) equates to a 0.6% bonus if you're an F/O, and 0.4% if you're a Captain. The execs' bonus? TWENTY PERCENT. I'll say it again: TWENTY PERCENT.

And at least with the old share scheme you didn't pay tax on the $1000 worth of shares. Now a top tax bracket sucker is giving 50% of this bonus to John and Pete. The lower brackets end up with a higher net bonus. "People are our most valuable asset...." Yeah, sure....

Oh, and it appears that the REAL reason for giving employees a bonus in the form of shares was that it was a way to defer expenses by three years, hence make the current year's profit & loss statement look better. Now there's a change in accounting standards that require such an allocation be recorded as an expense in the year it's first granted. So there's no benefit to QF anymore in giving employees shares.

They have no idea just how much damage they're doing to morale.

GOD gets paid $2,000,000 and gets 60% bonus for F*&^king the employees, its all doom and gloom....... next it will be pay cuts to pay for rising fuel price!:*

Yes I'm happy about the cash bonus. http://www.my-smileys.de/smileys1/00001656.gif

Was thinking the other day of a cost saving concept that would save Qantas millions.
Low cost management.
I mean they are already doing the job OK so why not present a case to the shareholders that they do it for considerably less.
I'm sure if the shareholders were presented with the benefits of at least halving the current salaries and conditions for upper management they would reap the rewards in the form of increased dividends.
After all at the end of the day they are only managers.
Graduates are pouring out of universities that would gladly take on the job for half or maybe a quarter of what they earn now.
These graduates could be taken into the airline as middle level managers at half the current rate of pay and then groomed to be the discount upper level managers of the future. As the current managers retire the new school will naturally be brought in at ever decreasing rates of pay.
Its what the industry demands and a reflection of the current competetive nature of aviation.
I suppose the Qantas upper level positions could be likened to Danton or Robespierres situation in 1793.
Just a thought for saving costs.

Introducing JETMAN a Low Cost Management company contracting to Qantas Share holders to run the company….
Could anyone suggest what the conditions for JETMAN should be….
:cool:

:ok: Sounds like a reasonable suggestion, Chilli Muscle (to everyone else except them) - the "initiatives" introduced are hardly earth-shattering...screw every worker`s salary down to as low as possible, if cheaper labour is available overseas set up an o/s base (complete with its own B.S. Castle & management, of course) and ship the jobs off Aussie`s shores.
My next move would be to set up an international lcc (again with more management, of course), charging them to work.

Yes, I`m sure there are PLENTY of well qualified graduates who would welcome the opportunity to whip QANTAS into shape with fresh, new ideas - for far less remuneration than the current team of hacks.
You could probably get 10 well qualified new managers for just GOD`s bonus alone!