PPRuNe Forums - Qantas August 23rd announcements

PPRuNe Forums (https://www.pprune.org/)

- Australia, New Zealand & the Pacific (https://www.pprune.org/australia-new-zealand-pacific-90/)

- - Qantas August 23rd announcements (https://www.pprune.org/australia-new-zealand-pacific/493574-qantas-august-23rd-announcements.html)

Quote:

QF also has the advantage of a very strong AUD that, as well as offsetting increases in fuel prices, also lowers costs for aircraft purchases, leases, foreign bases etc.

Exactly, but they sure as hell in Coward St AREN'T taking advantage of those advantages.

it wasn't stated anywhere in the presentation but Slide 15 seems to suggest that HNL will no longer be a QF Int'l route going forward. This probably makes sense given JQ can handle a leisure route such as this...funny they didn't announce it though.

Quote:

It won't be around for much longer with QANTAS, but I fail to see how you think it makes sense to drop HNL given that the three weekly flights on QANTAS are full, and sometimes cheaper than JQ, and yet QANTAS are operating the 767's against the A330's.

The decision to drop HNL will be the same as dropping the Gold Coast a few years ago, and then return to it.

Quote:

How is International expected to turn around when fleet numbers aren't increased, no new aircraft introduced, no new destinations added or exisiting destinations culled?

By setting up more Lounges!! :rolleyes: Everyone knows you only go to an airport to sit in a Lounge. You don't need more aircraft, Just more Lounges, more Lounges for everyone I say!!!!!! :ugh::ugh:

High dollar - Low dollar

Over on QREWROOM it has been reported the High AU $ is being trotted out in the list of management excuses.

One crewmember with a long memory posted the following blast from the past authored by Margaret Jackson

Quote:

27 August 2001

Dear Shareholder, I am writing to inform you of our trading results for the year ended 30 June 2001.

2000/2001 Full Year Results
The year ended 30 June was a challenging year for Qantas, with significant price discounting in the Australian domestic market, a weak Australian dollar, an overall slowing in the Australian and international economies and continued high jet fuel prices.

In this difficult environment, Qantas achieved a profit before tax of $597.1 million, 21.7 per cent lower than last year’s result. Profit after tax was $415.4 million, down 19.7 per cent.

This significant profit was a considerable achievement at a time when the global aviation industry is experiencing unprecedented change and many airlines around the world are reporting losses or small profits.

Dividends
The Directors declared a fully franked final dividend of 9 cents per share, bringing total fully franked dividends for the year to 20 cents per share. The total ordinary dividend was 2 cents lower than last year, however the payout ratio of 60 per cent was maintained.

Revenue
Revenue for the year totalled almost $10.2 billion, a record for Qantas and an increase of $1.1 billion or 11.9 per cent on last year. This growth was driven by a 9.3 per cent increase in flying.

Expenditure
Total expenditure, including interest, rose by 14.9 per cent due mainly to costs associated with capacity increases and higher fuel costs. Total fuel expenditure increased by $466.6 million.

Business Segments
International operations continued to make a strong contribution to Qantas’ performance during the year, with earnings before interest and tax (EBIT) rising 22.4 percent to $458.7 million.

Domestic operations contributed $127.4 million in EBIT, down 53.2 per cent, with two new domestic entrants resulting in significant price discounting and pressure on fares across all routes.

Subsidiary operations – which include the regional airlines, Qantas Holidays and Qantas Flight Catering – contributed $109.7 million to the Group’s EBIT, a reduction of 35.2 percent.

Outlook
Qantas faces a very challenging external environment with slow global and domestic economies, intense domestic competition, continuing weakness of the Australian dollar and high fuel prices.
Global pressures are causing airlines around the world, including Qantas, to restructure so they are in a position to participate successfully in this rapidly changing industry.

Qantas Airways Limited ACN 009 661 901 Qantas Centre 203 Coward Street Mascot New South Wales 2020 Australia Telephone 61 (2) 9691 3635
This year’s performance confirms that Qantas is a disciplined and robust airline, ready to meet the myriad challenges that it must face while maintaining a clear focus on safety and reliability, efficiency, productivity and customer service.

Annual General Meeting
The Qantas Annual General Meeting will be held at the Melbourne Concert Hall, Victorian Arts Centre on Thursday 18 October 2001 at 2pm. As shareholders, each of you will receive advance notification along with details of key items to be considered at the meeting. This information will be mailed to you in mid-September with the Annual Report, which will give you a comprehensive outline of the company’s financial, operational and commercial performance.

I hope this brief outline of the 2000/2001 year has given you further insight into the activities of Qantas in which you, as one of our valued shareholders, play an essential role.

Yours sincerely,

Margaret Jackson Chairman

:rolleyes:

The only people to blame here are the incompetent Board and CEO. First loss in QF's 17 year floated history. They can blame the price of fuel.......blah blah.....Australian Unions ......blah blah......Australian public choosing other carriers.......blah blah. Can people not seeing that little Irishman is destroying the roo.?

They could've saved 200 mil by trying not to shaft their staff. But I guess thats part of the .... transformation... :mad:

So new aircraft for QF international all cancelled... Jumbos being retired .. no aircraft to explore new route possibilities ... What is the future for International ?? There seems to be none in the current management's plans

How come things "external" can be blamed?

The "external" things are what MGMT are supposed to MANAGE as well as the internal.

This mentality will not wash with institutional investors for much longer.

AJ is the captain of this ship - I remember when AGL had to oust its CEO a few years ago. Share price dropped, then powered upwards.

Our brand has been damaged and those responsible refuse to accept this. Years of under-investing in advertising the main brand (which is a no-brainer), selling out on Australian jobs and offshoring, poor staff morale, poor choice of fleet, etc etc etc...........

I mean really!! What would one expect. They failed to recognise the brand and nuture it. Now it is suffering.

The only thing I would expect is for things to get worse, a round of fat whopping bonuses for our head honchos, and more job cuts.

The head start that Qantas had as Australia's own airline was invaluable, yet that advantage has been squandered and the reputation of the brand trashed by incompetence. Overseas carriers have made a meal of Qantas and left it withering, with Qantas management blaming everyone and everything else for the decline.

Just a thought.

As Qantas has split mainline into two and from all accounts the QSA only applies to the international division, what is to stop domestic from flying internationally bypassing the QSA?

What is to stop domestic from being the new golden child?

I noticed domestic carries all the assets while international the liabilities.

Can they simply wind up international, transfer the assets to domestic and play happy days with new agreements?

I don't think the public will be happy flying Jetstar internationally as a replacement to mainline no matter what. The only thing I can see sense in is what I just mentioned?

It's what I'd do if my millions of dollars worth of bonuses were tied to it.

Food for thought?

The only thing keeping QF international from extinction is the Dugong.

Jetstar will be given the rest.

If current management could dump London and the States to wind up international they would.

Such is the mess the dual brand strategy has created.

Maybe It's time the Unions of Qantas chipped in and hired the likes of Kordamentha to do a forensic investigation into what Qantas management trot out all the time.

Ï wonder what, if anything, Kordamentha's "Interrogate" programme would reveal if let loose on Qantas' books????

KordaMentha InterrogateTM

http://www.kminterrogate.com/assets/...accounting.jpg
The KordaMentha InterrogateTM was developed to assist organisation analyse high volumes of transaction data to identify suspicious activity and financial loss. The suite utilises a broad range of tests and data analysis techniques to identify suspicious vendor and/or employee activity as well as opportunities to recover leakage within the transaction data.
The suite has been developed based on more than 30 years of combined experience in investigations and data analysis. The suite evolves based on every positive incident identified and continues to evolve with regular input from our investigations team. This ensures the suite keeps up with current issues and risks which also helps to minimise false positives.

The suite considers the following:

relationships between vendors, and employees;
validity of key fields and records, as well as against external data sources; and
duplication and unusual transactions, including trends and behaviour.

The suite attempts to cut through high volumes of data to return a manageable list of items for investigation and follow up. Appreciating the limited amount of time available to organisations, our team have incorporated the learning from consulting and commercial experience into the suite to ensure that only high risk items are brought forward for immediate attention.
All content copyright © 2008 KordaMentha, all rights reserved.

Traffic to HNL has increased 45% in the last 12 months
Hawaiian Airlines are flying daily out of Sydney full
Hawaiian will start flying out of BNE to HNL and then look at MEL
Joyce has said on several occasions that he is surprised that Qantas makes money flying to HNL.
There are the problems with the airline encapsulated in one route
They make money so they are pulling out and leaving it to Jetstar
BTW Jetstar is hardly ever full because pax dont like travelling with them

I think the problem with Jetstar is you are seen as not flying with Qantas.

People like to feel 'upper middle class' and flying Jetstar doesn't give you that.

Look at Melbourne. You walk past all the nice Qantas gates down to the dungeon to the dirty lounge where the floor looks like it's never cleaned and the seats are covered in stains.

Qantas International will be wound up, the 787-900's will be deployed from 2016 onwards painted in Qantas colours and crewed by pilots on EBA's way below the current Qantas longhaul award. There is nothing to stop this being Jetstar pilots except that by 2016 they may be viewed at to expensive.

This gives AJ and his team 3 years to effectively finish Qantas International.

The problem with Qantas is the management have been tinkering around the edges for too long & have taken their eyes off the main game.

Pre GFC, making money & big bonuses was easy, those days are over.

Because they have tinkered for too long, now the airline has put itself in a position that it must take a big hit in short term pain, (shedding staff, deferring aircraft deliveries, upgrading 767 interiors) in the hope it will prosper in the future.

Management alone have positioned the brand & the airline to the predicament it currently sees itself, they are the ones to blame.

They have managed the airline into the current state of play & are now attempting to manage their way out of it.

1. Distracted during setting up & expanding the LCC enterprise.

2. Attempting to replace the mainline product with that of the LCC & expecting passengers not to walk to the competition.

3. Taking their customers and staff for granted.

4. Not fixing the structural changes within International (that they claim now exist) until such point at is threatens the very existence of international. ie: How the F&$# has it taken Joyce 4 years at the helm to realise he needed to split the DOM & INTL business & now commence a "transformation" process?

5. Not looking after staff hence the current engagement levels.

6. No product offering in Europe.

7. Not recognising that International is an important feeder to the Domestic business & resourcing the international business appropriately. ie: B744 IFE has been stuffed for 10 years. Not replacing the ageing 744 earlier.

8. People value safety, safety incidents have allowed the reputation to be tarnished.

9. Public punch ups with their staff every 3 years.

10. Tired domestic product, aged 767 with 1980's style video projection systems.

11. Poor premium network offering, both domestically & internationally.

12. Grounding the airline, alienating staff & loyal passengers.

13. Brand confusion - Pax buying what they thought was a premium flight & getting the LCC.

14. KPI's which rewarded individual managers for cost reductions in their own department, which in turn was less efficient for the business as a whole.

15. Not listening to frontline staff, who see the issues & problems first hand.

16. Poor leadership.

For tens of Millions of dollars "Bain & CO" should be able to tell management thats how they got here.

The truth will out. Interesting article on ninemsn finance

Qantas denies managers to blame for losses

Does 20 odd aircraft in International actually consitute a "fleet"? Im not sure it does. You can see the end coming over the horizon.
And I repeat my earlier prediction. Anytime soon Jetstar is going to become "expensive" and "not doing well"...and up will step the Network EBA, just wait for it.

Saying "it wont happen"?. If I said 15 years ago, QF international will be almost gone by 2012..and Jetstar will be doing almost all of the international flying and getting the 787s ISO mainline, you would have told me I was deluded.

I hope I'm wrong, I really do,.....but lets see...