Although a massive loss I would say things are looking up for Qantas. Definite change in tone coming from head office which would suggest all the 'crap' has been lumped into this loss and we will see a remarkable return to profit next year. The capacity war seems to be over with both Virgin and Qantas stowing the handbags for later. For all of Joyce's faults it seems now that Qantas is going to get some sort of legislative change that will enable some more foriegn cash through the door. We even have Qantas confidently stating they are looking forward to exercising options on the 787-9.

“Those 50 options and purchase rights still exist,” says chief financial officer Gareth Evans. “We’ve pushed back the first couple of those from 2016 into 2017 and we’re very much looking forward to exercising those options and bringing those aircraft into the Qantas fleet.”

“We’ve got to get through the transformation of the business first and drive the international business into profitability, and we’re well on track to do that. Then we will be making the future investment decisions and what we’ve got is a lot of flexibility and some great opportunities to bring some new generation very efficient aircraft into the Qantas fleet,” he adds.

So, in 18 months the business will be profitable with the new aircraft about to arrive and Qantas may even be in an expansion mode. Joyce will leave which will make many happy, what won't make people happy though is that he will be leaving with.a massive bonus for overseeing such a remarkable business transformation, but hey we can't have everything.

Goddamnslacker,

Re 380s what a load of crap, must be such a bad aircraft, thats why Emirates, Singapore etc bought them!!
In a recent passenger survey, 75% of passengers rated the 380 as their favourite Aircraft to fly on!
And it is passengers that pay everyones wages!
I dont think it is any coincidence that Qantas are doing well across the Pacific, and growing capacity on these routes, as they are the only airline flying the 380 to from USA!

380 maybe a bit to big at present, but its only 5 years into its program,and with world passenger traffic predicted to double every 15 years, it will prove to be the only way to grow capacity into slot restricted airports.

It is however dissapointing that Qantas, have delayed acquiring the much needed 787/9s!

Company Spy & Boe787, what Goddamslacker said has some credibility. The A380 was bought by Qantas to efficiently operate 14 hour sectors - since it has been in service, it's been found to be most efficient over 9-11 hour sectors and on sectors above 12 hours, its fuel burn is excessive and thus it is not cost effective. No one disputes that the aircraft is popular with passengers but airlines have to make a profit out of it and on the sectors that QF operates it, it's not as good an option as the B777-300ER. No one with operational experience can understand why Joyce is putting it on the DFW route, it seems to be another way to burn excessive amounts of fuel.

SQ recently ordered 5 more A380's but these are not additional aircraft. They are planned to replace the first five aircraft that they took delivery of, as they are significantly heavier than subsequent aircraft that came off a mature production line. It looks like SQ will not be expanding their A380 fleet any time in the future.

In that statement, Evans appears to be taking a measure of poetic licence as the B787 order book stands at 50 Purchase Rights (zero options).

Make these clips go viral on social media.






More to come...

Company spy,


Can you confirm or deny the rumour that the 380 Dugong service DFW-SYD will depart everyday with 100 empty seats to enable it to make SYD? I fail to see the economics in it if said rumour is indeed true.


McHale.:)

So it will only carry 400 passengers then?

The theory the board tried to spin was that the B777 was to small for their operation. In that they were operating into capacity limited airports where they couldn't increase frequency. So their thinking was that they go in there with the biggest machine possible.

Problem was the economics of the A380 didn't really work out and that the 777 was a better both way bet.

At the end of the month, when the A380 takes over the service, it will be scheduled to operate DFW-SYD direct; a scheduled time of 16:55.

As mentioned some months ago, the aircraft can carry roughly 280 tonnes of payload and fuel. The reasonable estimate is that 240-odd tonnes of fuel will be required so about 40 tonnes will be left to uplift punters....400 pax is a reasonable estimate.

By the way Gds; the A380 cruises at the same Mach no. (.84-.85) as the 747 for the equivalent Cost index and in the Qantas case, 400 pax will leave 88 seats empty (not 150 -200....see following post)

A380
 

I rest my case the A380 is a lemon and yes it isnt 100 empty seats 150-200 empty seats...very cost effective compared to a full 777-300ER..
The A380 is destine to the scrap yard, zero resale value!

You won't get a "full" 777er on a 16hr sector. This is why EK are replacing 777s with 380s on ultra long haul flights. Full seats and some cargo on the 16hr trip to/from lax where the 777 is seat limited.
Just sayin.

The don

Don, I have flown plenty of LAX and SFO trips on the 777 when we are full, as in every seat taken. I can't see that as being seat limited, but perhaps I miss understand you.

Complete results presentation Aug 28 2014

SOPS,
Just repeating Tcas's answer to why SFO, IAH and DFW are all going maxi bus when it burns more fuel etc when asked by 777 driver at wash up.

The don

Ahh that voice of complete honesty, Tcas :E

FWIW Don, we launched out of home base at MTOW the other week 44C T/O bump, APU-packs (atomic batteries to power :E) and we were full of punters, 14 tonnes of freight, and 130T of gas, chocked on at IAH 16hrs and 22 minutes later with 7.2 tonnes in the tanks. Not a bad effort for the John Deere. I personally don't see the 380 being a game changer in terms of revenue on those longer sectors, that being said, in EK's case it has just as much to do with "prestige" and……one-upmanship as it does in revenue creation. Anything that breaks even or a bit better will have a 380 on it before long as it is the flagship.
In QF's case they should bury the lot of them and get 350-1000's or 777-9's IMHO.

Qantas should let Virgin report their results before them next year.

On Friday, in Melbourne's Herald Sun, Qantas got the front page, the first six pages full, half the editorial/opinion, half the business. Basically half the newspaper!

On Saturday I see Virgin got 10 lines a few pages in! And half those ten lines were reminding us of Qantas' result!!!

haughtney1 wrote
But the 380 will carry 488pax for 16hrs and the 777 will cary 354pax for 16hrs in present EK config. I don't think its about "one-upmanship". Its just that one airplane carries more people than the other and EK can fill them up.

In the case of QF doing 16hrs in their 380 I don't think they have the higher gross weight version and must admit, depending on their config, it's tight and seats might be blocked. IMHO QF should use 777 but EK can get away with using 380s.

Sorry for the thread drift fellas.

Haughtney,

No you didn't. They are only lifting under 40t on the way to IAH at the moment. I will PM you instructions on how to read a load sheet :)

It doesn't matter what fleet QF had with the present management. You can't shrink to profit. Fingers crossed it has turned a corner and the future is brighter.

The don

I can't help but be reminded of Einstein's definition of Insanity:

"...doing the same thing over and over again and expecting different results.."

More commentary by Evan Lucas

Commentary by Greg Bamber starting at 1:50 on industrial relations for the service sector is vastly different from mining.