Steve Purvinas, legend
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Outstanding article. Congratulations Steve.
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Nice work, Steve. |
20 out of 10 Steve. Well done. !!!! |
Maybe helps explains why 42% of pilots actively work against the companies interets. |
Virgin cops a lot on the financial front and rightly so for some questionable decision making, but they have replaced 737s in the last 7/8 years 2 vs 1 against QF. Going into mid next decade Virgin will have a 737 fleet age 1/3 that of QF. This is the time Virgins capex will slow down for 10–15 years while QF has large fleet bills in the back half of this decade, and this is the point where I expect him to handover the reins to some poor body who is faced with impending fleet bills that will wipe the profitability of the company for many years and trying to work out how they are going to pay for all these neo’s and max replacements. |
My admiration for Steve knows no bounds. This article, free from bias and hyperbole resists the temptation of becoming partisan. No mean feat, when as a leader he would be faced with regular frustrations from his political opponents. Geoff Dixon wasn’t the most popular bloke, but that wasn’t his job. Steve has let the facts of Dixon’s time at the helm speak for itself, and equally those of Joyce. The apparent transfer of $60 mil from the pockets of the rank and file into those of senior management, and the blatant pretense of it, really highlight the depths of dishonesty that is rife in corporate Australia. Time for a change? Yeah right! |
Beautifully put Steve, well done :D
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Excellent opinion piece
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Awesome article Fed Sec. The comments posted below the article tells a tale. I wonder what would happen if the rumours of * cough * alleged wage theft became public? |
After Qantas announced a $2.8 billion loss in 2014, staff were all called on to freeze their wage levels for 18 months, a call that my union was first to heed in order to help the struggling airline. Dear Mr Purvinas, A small but pertinent point.
Be vigilant for a similar play. It is a straight out transfer, and a robust regulatory environment would not only have investigated the claims of "terminal decline" in CY11, but also the very rapid "transformation" FY15 as well as the "incredibly well timed option vesting dates. Otherwise eloquently written... |
Cathay Pacific 8.5 years, Singapore Airlines 6.9 years, Air New Zealand 6.9 years, Emirates 6.6 years and Etihad 5.9 years. Emirates and Etihad can’t be compared simply because they have very different agendas; operate on very different financial structures etc. Maintaining a reasonable age of fleet ensures comfort and on-time performance are at an acceptable standard. I don’t agree the age of an aircraft results in poorer OTP as quoted by Steve. Rex seems to manage an ageing fleet (average of 26 years) with the some of the best OTP performance in the country (usually second after QantasLink - and how old are those ex AA 717’s and DHC-300’s?). How is that possible with such an ‘old’ fleet... Yes, the airline is now profitable again, as it always was under previous CEOs I do hold the shared opinion that Qantas needs an upgraded fleet however. |
how old are those ex AA 717’s |
Originally Posted by T-Vasis
(Post 10599638)
Cherry picked airlines that have fleet sizes less than a quarter or at least half of the Qantas fleet size, accelerating the favourable age curve with less deliveries required. Not a good comparison, even if they are in the region.
Emirates and Etihad can’t be compared simply because they have very different agendas; operate on very different financial structures etc. . You sure about that? |
I included subsidiaries. Deployed Group capital is an important consideration. QF deployed capital to JQ for JQ’s fleet and renewals. Money was spent. It has invested. Not to the desired brand for some.
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I went through an airport recently and watched him scurry into the QF first class lounge. The Business class lounge was like an dirty overcrowded zoo. Any decent CEO with some personality and leadership might have used such an opportunity to see the coal face and check the feedback from his customers firsthand. The QF product is in decline. Qantas prices and Jetstar quality while gouging Australians who have to travel internationally. Credit to those staff that keep smiling and delivering a great service but they are getting harder to find. QF is my last choice while he is in charge. |
Originally Posted by T-Vasis
(Post 10599694)
I included subsidiaries. Deployed Group capital is an important consideration. QF deployed capital to JQ for JQ’s fleet and renewals. Money was spent. It has invested. Not to the desired brand for some.
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Alan and his faceless men
Well written Steve. As you point out, it’s all about juggling books. The airline does not make the cash profit it makes out to people that it does. Not upgrading an airlines fleet, running fuel and maintenance costs between both of its airlines and a host of other financial tools at its disposal helps it to paint the whatever picture it wants at any given time. But I digress. Alan Joyce worked for Ansett. There were meetings between himself, Geoff Dixon and a few other players which included another Ansett man, Bill Jauncey. Together they hatched Jetstar, an LCC that was meant to take up all the low yielding routes and leave the cream to Qantas. Profits galore at both end of the spectrum - Qantas a premium service and Jetstar the bogus service. Jauncey once described Joyce as ‘one of the smartest money men you will ever meet’. That is the only compliment I will give Joyce; he has a brilliant business mind. But he is a selfish, self centered, self indulging narcissist. A weak little man with no backbone. Of late, most of Alan’s “protected species”, faceless men and women who link back beyond the JQ machine to the Ansett days, are leaving, and getting big redundancies of course. Alan is preparing to bail. It’s all in the timing. He is looking after his loyalists as he prepares to exit the beginning. Timing is everything, and Joyce is going to truly leave behind a steaming turd for someone else to massage. Just like Borghetti has done to Scurrah. A steaming pile of nothing that is so brittle that when the next financial, health or oil crisis hits, there will be financial ruin. These airlines are like helium balloons. Just a thin skin protecting an empty void. Joyce is not worth the $100m he has been paid. It is obscene. However the weasels on the Board and the greedy capitalist shareholders love him. And hey, who can stop him?? |
when Joyce took over as CEO, the airline has shrunk massively - not only in the number of hulls but also in Available Seat Kilometres (ASK’s) |
I think your fleet sizes are not quite correct, a quick search shows EK- 240 /CX-146/QF-129/EY-115/SQ-107/NZ-69?
Hardly Cherry picked airlines That have fleet sizes less than a quarter or half of the qantas fleet size. |
Originally Posted by cnsnz
(Post 10599969)
I think your fleet sizes are not quite correct, a quick search shows EK- 240 /CX-146/QF-129/EY-115/SQ-107/NZ-69?
Hardly Cherry picked airlines That have fleet sizes less than a quarter or half of the qantas fleet size. Would it be closer comparing QF INT the EK, EY, etc? |
Originally Posted by cnsnz
(Post 10599969)
I think your fleet sizes are not quite correct, a quick search shows EK- 240 /CX-146/QF-129/EY-115/SQ-107/NZ-69?
Hardly Cherry picked airlines That have fleet sizes less than a quarter or half of the qantas fleet size. his 1/4 to 1/2 would mean those QF subsidiaries would need to have a fleet between 120 to 420 for his statement to be accurate. Then if we add in subsidiaries like Cathay Dragon, Scoot, and Silkair.......... |
An example:
Cathay Pacific and Cathay Dragon combined ~181 Qantas Group (includes QLink, Network, Qantas INT/DOM, Jetstar Group) ~367 367/2 = 183 or 50% My comments were not fully evaluated, yet on this Group for Group comparison - it is 50%. It is important to consider Group deployed capital. Investment made in one brand over another does not reflect a lack of investment in fleet. It reflects an investment in a particular brand. Has Qantas not adequately invested in QF INT and DOM - no it has not. Has it invested in the Group fleet (new, or renewal) - yes it has. Etihad and Emirates are not fair comparisons. The ME3 are very different beasts on so many levels. Everyone knows this. |
Agree with Steve 100% |
Well done Steve :ok:
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Originally Posted by ramble on
(Post 10599726)
Credit to those staff that keep smiling and delivering a great service but they are getting harder to find. |
The ground staff have been one of the hardest hit re slashing and burning, and are a good 30% understaffed at pretty much every airport Australia wide, I’m amazed they aren’t even grumpier, their days are non stop chaos, it’s horrendous. So maybe cut them a break next time you interact with them, I know I do. |
Originally Posted by Angle of Attack
(Post 10600321)
The ground staff have been one of the hardest hit re slashing and burning, and are a good 30% understaffed at pretty much every airport Australia wide, I’m amazed they aren’t even grumpier, their days are non stop chaos, it’s horrendous. So maybe cut them a break next time you interact with them, I know I do. I hope someone on here can confirm this split shift arrangement. |
The rot and undercapitalisation goes much further than just planes. 10+ year old computers (brand new on Bourke st) 30+ year old tugs, ancient tools, cars, forklifts, buses you name it they’ll let the airline go broke before they spend money on the equipment required to run an airline. Every piece of machinery imaginable is constantly broken down waiting for parts because they don’t want to carry any inventory. The under capitalisation of equipment is dwarfed only in the underinvestment in people. How many AMEs are getting licensed every year? Apprentices trained and employed? Upskilling of LAMEs is non-existent. The amount of individual contractors, labour hire and EBA holding companies (Jetconnect, QGS, MAM, QFCCUK) is utterly shameful. These are things that won’t make the wheels fall off entirely but the costs over time become enormous. The good thing for those responsible is they can readily shift the blame which is every Qantas managers sole priority.
Originally Posted by Street garbage
(Post 10600337)
I hope someone on here can confirm this split shift arrangement.
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Originally Posted by Angle of Attack
(Post 10600321)
The ground staff have been one of the hardest hit re slashing and burning, and are a good 30% understaffed at pretty much every airport Australia wide, I’m amazed they aren’t even grumpier, their days are non stop chaos, it’s horrendous. So maybe cut them a break next time you interact with them, I know I do. |
Originally Posted by unobtanium
(Post 10600444)
Not happy? Stay at home, get another job, there are so many other customer service jobs out there that will be more than happy to hire an ex-Qantas trained staff. Or not? My experience was trying to get assistance, I was the only one at the service counter, and what I got in response was eyes ROLLING because I dared to interrupt their private non-work related conversation with my ticket issue, followed by some keyboard smashing and a DILLIGAF heres your ticket now get out of my face.
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What annoys me is the smarmy and expensive PR image QF projects versus the sad reality of the constant cost cutting. There are still a few decently trained staff but seeing them have to hand out crap food labelled a “Neal Perry gourmet creation” is just plain depressing to watch. |
Sunfish - absolutely correct. "Smarmy" is the perfect word for it.
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Originally Posted by Sunfish
(Post 10600176)
Agree with Steve 100% |
Here’s the reply from Qantas. I have done some work on the 2014 versus 2019 annual reports and can’t come up with anything on her fleet claims, anyone help please? I note no rebuttal of the executive bonuses been covered by the wage freeze. Here’s what I found and I don’t claim it’s gospel. 2014. 2019. Difference Revenue. $15,352. $17,966. +17% Fuel. $4,461. $3,846. -13.7% ASKs. 141,715. 151,430. +6.85% If I’m correct they have grown yield greater than the amount of flying they do, good for them however I will say that IMO they abuse there near monopoly position domestically by price gouging and that despite what they might like to say the decrease in the price of fuel has provided a huge addition to the bottom line. https://www.smh.com.au/business/comp...22-p5336f.html |
The apparent growth in QF ASK's is purely through buying seats on other airlines, there has been a very substantial reduction in ASK's on Qantas aircraft.
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180 Aircraft since 2009.... I cant make it.
Including all the Jetstars my best guess: 22 B787’s 70 A320’s (around 35 to JQ Aus) * 25 DH8-400* 10 B737-800* 12 B717 17 F100 10 A330* Total - 154 * = best guess Three points on the above: 1. Roughly 35 of these aircraft are operated by Jetstar franchises ie Japan 2. 29 of them were second hand at purchase. 3. Most, if not all of the new aircraft orders were placed by the Dixon era, AJ & co simply went along (or couldn’t cancel) As far as engagement goes, the very fact that the surveys are not consistently run every year and have changed significantly makes increased engagement a hard claim. Ms Hudson and corporate Comms have written a puff piece which to me, serves the argument that Qantas now believes its own BS |
No mention of giving up routes for the codeshare with Emirates either.
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Well that’s sorted then. Qantas is in such good financial shape that is should quite happily reward employees in upcoming EBAs. Thanks Vanessa! |
It's interesting how Vanessa keeps comparing QF Domestic with the main competitor, Virgin - no mention of International comparisons, why was that?
In 2012/13, Joyce was proudly proclaiming that QF International was a basketcase, in terminal decline, etc. Despite the fact that the loads hadn't decreased he pulled QF out of major routes (SYD-SIN-FRA & AKL-LAX) and ran to the government for a tax payer handout. When the government required a forensic examination of the accounts before any handout could be considered, he backpedalled, slunk away and recorded a record profit only 12 months after the $2.8 BILLION paper loss. The fact that the International division's losses were being manipulated by management was shown when JQ domestic pilots posted pics of their fuel invoices with QF International shown as the receiver of the fuel. This was one of many ways that the accounts were (& still are) being fiddled but Vanessa doesn't want to go there as there may be an investigative reporter still keen to find the truth and that would be embarrassing. |
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