I havent been able to get on top of all the announcements the last few days due other commitments.

However, I pose this question to those who have had the opportunity to follow the announcements in more detail.

AJ has stated previously, he has a plan to turn Qantas International around and to profitability by 2016.

In the last few days I've only heard his mission is to reduce costs by $2B over the next two years.

So the question is. Has he drifted from previous messages that his strategy will return Qantas International to profit by 2016?

Is the Level Playing Field, Foreign Competition, FIRB, SOE & the QSA although relevant, a distraction to the fact he's not delivering on his previously announced performance targets.

MC

YES! Fill fill

Ida Down.

I'm of the opinion that the current QF Group strategy is Alan's plan.

It's a plan presented to & signed off (supported) by the Board. But it's Alan's plan.

Finally!!
Well done SMH.

Mayday: How Qantas went from national icon to corporate tragedy

Agreed. Better late than never but, Finally some journalism! Good show SMH.

My feedback to the SMH Editor.

$25 a month......maybe a few should support their new direction and let them know why....

One of the most accurate reads I've seen in a while.

Alliances and Friends
 

I know this subject has been touched on before by others. But, I continue to be bemused by the way Qantas appears virtually friendless. In an era when the alliances (Oneworld, Star and Skyteam) are akin to tribes, both protecting insiders and waging war against outsiders; Qantas seems to be an unreliable member of Oneworld, befriending non-aligned airlines, and single-handedly fighting significant members of the Star Alliance.

Having set-up Jetconnect and Jetstar NZ, is it any surprise that Air New Zealand has retaliated against Qantas? Having set up Jetstar Asia, is it any surprise that Singapore Airlines has come out to fight? It could be argued that Qantas precipitated the coalescence of Air New Zealand and Singapore Airlines beyond their natural affinity as Star Alliance partners. They have a common enemy that is openly expansionist and 'in their face'.

Qatar Airways is a member of Oneworld and yet Qantas has entered into a grand scheme with Emirates. Cathay Pacific is a member of Oneworld and yet Qantas has chosen to establish a provocative competitor in the form of Jetstar Hong Kong Airways. Jetstar Hong Kong is a joint venture with China Eastern Airlines - a natural competitor to Cathay Pacific and a rival of Air China. British Airways is a member of Oneworld and has been spurned by Qantas in the blush of new love with Emirates. The only manifestation of the Jetstar pan-asian strategy (at least in North Asia) that is not an affront to a Oneworld 'partner' is the Jetstar Japan set-up, which is a JV with Japan Airlines.

Etihad is a natural competitor of Emirates. It is entirely foreseeable, in terms of stimulus/response behaviour, that Qantas' grand alliance with Emirates would give Etihad (already an investor in Virgin Australia) cause to consider increasing their defensive posture. And, we all know that the best defense is attack.

Alan Joyce and other Qantas executives have quite rightly pointed out that diminishing the profitability of Qantas' domestic operations is the most effective way of weakening Qantas' strength as an international competitor. If, the Jetstar pan-asian strategy is seen as a function of Qantas' international strategic vision - then I suggest that Singapore Airlines, Air New Zealand and Etihad have good reasons (rational self-interest) for creating a powerful entity in Australia in the form of Virgin Australia. It is possible that even Cathay Pacific (supposedly a 'friend' of Qantas) is supporting the growth of Virgin Australia for tactical purposes.

On one hand, perhaps the grand alliance between Qantas and Emirates is a good thing for Qantas. On the other hand, it appears that Qantas has only got one good friend (EK) at the moment and is amassing a rather large crowd of opponents as a result of its corporate conduct in recent years.

There is nothing intrinsically wrong with 'going it alone'. However, if Qantas' domestic operations are the 'jewel in the crown' then why does the half-yearly financial report show that domestic ASK's growth is exceeding RPK's? Over-capacity is hurting both Qantas domestic and Virgin Australia. The difference is that VA is standing on one side of the school yard surrounded by friends, whilst the bully-boy Qantas is sulking in the far corner, alone.

There is a rumour that Joyce had much bigger plans for the slash and burn but was reigned in by the board. This was raised on the 7.30 interview and of course denied by Joyce. Could his plan have been to totally shutdown International?

Maybe there is the slimmest amount of rationale amongst the board.

Could someone answer this for me. Not too sure how accurate it is,
from The Age article today about the timeline of Qantas going down.

It occurred while the Qantas QF30 Manila Oxygen bottle incident was happening and relates to Geoff Dixon telling Borghetti he did not get the top job at Qantas.

My query is, why do you pull the senior manager out from a crisis to tell him news, that although important to him was not life threatening ?

It's a bit like Christine Nixon getting her hair done and going to dinner while the Black Saturday fires were occurring.

Quote
"As lives were hanging in the balance on that fateful flight almost six years ago, the board of Qantas, led by its relatively new chairman, Leigh Clifford, were working on a plan to purge senior management ranks. To this end, chief Geoff Dixon - who had been tarnished a year earlier by a failed private equity bid for Qantas - was asked by Clifford to pass on the news.
Peter Gregg.

He was to inform internal candidates Peter Gregg, the chief financial officer and a board member since September 2000, and John Borghetti, who was responsible for Qantas domestic and international operations, that their junior, the 42-year-old Irishman Alan Joyce, had got the job they wanted.

Borghetti was pulled out of the Mascot crisis centre, which he was managing, and told to come to the city urgently. He jumped in his car not knowing if Qantas had lost the aircraft or any of the 369 passengers and crew.
But after racing to the city, he learnt that the purpose of his summons was to be told the news about Joyce.

Read more: Mayday: How Qantas went from national icon to corporate tragedy

Does that tie in with the 'rejoining' of the AOC?

Please tell me this company is not paying Bruce Buchanan to 'advise' still......if we are, get rid of that instead of sacking someone

The The....

Problem with International, is without that carrot, the Frequent Flyer business is as good as worthless.
If all you can get is domestic flights or gift vouchers, it is another flybuys...

The aura in QFF comes from the international ops and oneworld (and Emirates) partnership

King William, even better then the $25, at the bottom of the article there is this:

Do you know more?

[email protected]

[email protected]

These 2 journalists might listen and report much much more.
Might be worth an email every time the Aviation Expert from Perth opens his mouth, to set the record straight.

Better than the TV & radio guys such as;
R Greenwood - Ch9 (do they still run the inflight news service? if so, he won't upset AJ) 2GB as well.
D Koch - Ch7 with Jet* being the major sponsor of Sunrise, would he say too much against AJ?
A Kohler - ABC - does he still have the Talking Business channel onboard?

Has Qantas chair Clifford totally lost the plot?



Has Qantas chair Leigh Clifford totally lost the plot? | Plane Talking


Didn't seem to worry him in this clip

No doubt the split was to copy Virgin, get the QSA repealed and sell off domestic, let International wither to death or be saved by nationalising it. They are in desperation mode now, so I think waiting around for all that to happen would be too long for them. Sadly I think "rejoining" the AOC means International is now largely doomed much sooner.

I agree QFF value is diminishing a bit with each cut and I am a bit surprised they didn't flog it off before the latest announcement to maximise value. But it is still valuable even if there is no QF International. Virgin FF is growing despite no real own metal International network, do Woolies shoppers care if they redeem points on EK operated code share flights, probably not.

HIALS: well written, and a cogent summary.

The reason for the growth in ASKs is the idiotic insistence of QF management that having 65% of the ASKs= 65% of the market. (As opposed to RPK share, the true measure of the catch, but still not indicative of profitability)

I always thought that the original Tiger Air was SQ's bitch slap to Dixon for starting JQ Asia. Certainly their will be some glee in Asia over the Scoot, Air Asia X, Peach, Tiger, etc successes compared to the flat-footed response from the self-proclaimed nimble first mover Joyce.

My wife, the sure-fire prognosticator, gives AJ a week. She is Irish, and about to petition the Irish Govt to rescind his citizenship. Even the remnants of the IRA think him an embarassment. Better get rid of him while we still can.

Who has the contract to REPAINT THE AIRCRAFT " SPIRIT OF VICTORVILLE" its all over Pan Am ooops Qantas.....:{:{:{:{

So as I see it, the Qf board's plan is going exactly to plan. Blackmail the workers and blackmail the government. Slash and burn employees and smash the QSA. They hate pilots and engineers and they'll be the first to go. Some 300 engineers as a starter to go, not including Avalon heavy, another few hundred engineers to add to that, so about 10% of the reduction from the engineers. Pilot numbers not mentioned yet

'Austral' I hope yr wife is correct there re AJ giving him a week but as for the IRA truth be known AJ is probably a cell for same having destroyed QF without even picking up a single stick of dynamite!

I think it's almost unanimous that AJ has to go but who would take his place & be able to turn around QF in a timely manor having been left a train wreck?


Wmk2