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Who's trying to get KD's CRJ's up???

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Who's trying to get KD's CRJ's up???

 
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Old 25th Oct 2001, 15:44
  #41 (permalink)  
 
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Hi, GG, good to see you back! Whatever the reason for her departure, it was sad news, she's a lovely lady.

Best regards,

TheNightOwl.
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Old 25th Oct 2001, 20:47
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Yes likewise saddened to see Mary Lou resign. She was one of the good "guys" .It was not her big picture that was lost but that of AirNZ. She was respected highly by the tech crew and many others. Good luck with your future prospects.

I like anyone else in the group has no idea what is destined for the CRJ's or any of the pilots whether CRJ or not. I think to get the show on the road again they had to come up with an AOC quickly and as cost effective as possible. SAABs and Metro's dont need a high capacity high cost AOC so it is the logical choice at this stage. Whether the RJ's are here or not, Rome wasn't built in a day, so it makes sense to me to be operating low capacity at the moment.

Hang in there guys whatever fleet your on.

[ 25 October 2001: Message edited by: beerpleasehostess ]
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Old 26th Oct 2001, 06:36
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I heard an ugly rumour yesterday that Mary Lou will be taking up a position with QF or one of their subsidiaries shortly.

If true, sad.
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Old 26th Oct 2001, 08:09
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Angry

I haven't replied for a while to anything on Pprune because there's nothing that hasn't been said that I can add too. However, I think a few people need to know a few facts about Mary Lou CANN. She was not sacked,and has not resigned yet. She has told us that she is pursueing interests elsewhere in other industries. Obviously she has been pushed and for good reason. Example, when the #$@# hit the fan, the ACT Chief Minister offered Kendells money to keep the Canberra base going,(be it Saabs or CRJ's). She NEVER replied and so they went the Hazeltons. Not happy Jan. As for the respect everyone seems to talk about, I don't know of one Kendells pilots or staff, that is not happy to see her go. She was in bed (figuratively speaking) with Rasalki and Jensen, and things haven't looked good for a while. (Even Bruesty was better, marginally) The CRJ was put on runs that it was never intended to go on. (A lot been said accurately about this) She may well have been liked and respected in other companies, but make no illusions about her time at Kendells. I do wish her well in whatever she decides to do but beleive me, the majority are not unhappey to see her go elsewhere.
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Old 26th Oct 2001, 09:42
  #45 (permalink)  
 
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Betedete I think you hit the nail on the head! I had heaps of respect for MLC when she first came to the company. It seemed that we finally had a leader who knew what they were doing. BUT what followed our grounding still leaves me bewildered as well as disheartened. Just ask any of the CRJ crew.
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Old 27th Oct 2001, 05:20
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Hullo everyone

These, unfortunately, are my view on the facts concerning Kendell, which are readily discernible to those willing to dig deep enough!

1. Kendell is hopelessly mired in debt and there are simply not enough 'regional' customers in all of eastern Australia to assist it in trading out of that debt.

The debt is mostly, although not entirely CRJ related, and in order for the administrators to have any hope whatsoever of reviving AN2, they must ensure from an accounting perspective, that the debt rests and remains entirely with Kendell.

2. Regardless of how the administrators do their sums, they can't come up with any acceptable formula which will enable Kendell to trade out of these debts, within anything like a commercially acceptable payback period.

3. All discussions to date have focussed on trying to crack this very...very tough 'nut'.

4. As a result of 3. there are no future Kendell business strategies under consideration. All efforts seem to be focussed on the short-term survival of specific bases. Accordingly, Kendell will remain under strict administration, rather than moving to the 'next step', where company management commences a working partnership with the administrator, such as Hazelton's current situation.

5. Mary-Lou is gone because Kendell is no longer a company capable of being managed for the future.

I am sorry folks, but in my view, this is the reality of what is now the 'post Ansett' regional market. At best, Kendell might eventually be broken up and sold piecemeal to local interests in Adelaide and Melbourne.

The oracle!!
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Old 27th Oct 2001, 07:37
  #47 (permalink)  

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I worked with MLC a few years back & found her to be totally professional & the type who called a spade a spade. If some of you had difficulty working with her, then I'd say YOU had the problem! Perhaps she didn't play the Old boys game , hence your discomfort with her at KD.

Anyway, you could've done a lot worse & from what I've heard about her replacement, you have!!!
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Old 27th Oct 2001, 15:55
  #48 (permalink)  
 
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betedete & Abba

With immediate effect once 'administrators' are appointed, the only words anybody is allowed to speak are the words that the 'administrator' says can be spoken.

These words MUST be spoken intoto whether you agree or not, even if you don't see any wisdom, good (airline) business practice or heaven forbid a bit of old fashioned honesty and humanity.

I haven't had any direct dealings with those 'administering' AN#2.
However, from dealings I have personally had with 'administrators' of other businesses, I do not envy anybody dealing with AN#2.

I have yet to find 'administrators' who are other than:
1: Gormless individuals totally lacking in anything remotely found in normal human beings.
2: Usually clever accountants (that never made it in either private practice or the wider business community).
3: Apart from 2 above, usually ignorant of the 'business' of the company they are 'administering'.
4: Will make sure they get their 'fee' before anybody else gets paid.
5: Those 'administering' aviation related companies have no idea of regulatory requirements (and don't want to) and go out of their way to avoid them if they can.

Perhap my experience with 'administrators' has been less than positive, but that's what I have found anyway.

ding
edited 'cos of my spelling!

[ 27 October 2001: Message edited by: dingo084 ]
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Old 27th Oct 2001, 16:31
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The Oracle, unless you're at Kendells, how can you make such a judgement. I am. Before the CRJ arrived, we were making a profit of b'tween 12 to 15 Million P/A profit. Yes, I know what you'll say, then why get the CRJ's. I'll repeat what has already been said, if the CRJ's had have been deployed regionally, they would have done extremely well. AN decided to put us on routes that AN were losing money on. We lost less than AN, but nonetheless, lost money. Do you think that management that was on your side would put there foot down and deploy them on the original routes that they were designed for, obviously they would.....but not MLC!!! Unfortunately, it all goes back to management....we had none.
And if you think we were in debt, even by putting us on unprofitable routes, AN were still losing 1.8 Mill a day (so the analysts say) Obviously you know more than me because we were hopelessly mired in debt. Just one other quick point, we had 60% of the regional market. I think that's pretty good actually.

BH, we couldn't have done worse, otherwise we probably wouldn't be in this mess with stronger management, and not sheep. (I mean blindlessly following the leader, not anything to do with NZ)


Dingo, you're quite right. I gave an example of her incompetence after Sept 14. Read my first para.
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Old 27th Oct 2001, 16:48
  #50 (permalink)  

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Hey there Buster Hyman, hope you are good

For what it's worth, I think you summed it up pretty well mate.

Actually, few people in the industry have I heard higher regard for. Those who've worked with her, for her, or beside her, and even those who've worked opposite her.

Just sounds to me like there are 1 or 2 with an axe to grind.

Good luck with it all.

GG

[ 27 October 2001: Message edited by: GoGirl ]
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Old 28th Oct 2001, 04:26
  #51 (permalink)  
 
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I am not saying these things to be vindictive. I am merely commenting on what I believe to be the facts after analysis. In response;

Firstly. Kendells profits prior to the CRJ are a matter of record. Unfortunately the world has turned. In those days the only debts Kendell carried related to the depreciating SF34 and M3/23 fleets.

Now KD carries these debts plus the CRJ's, which are new and costed currently at between $500mill. and $550mill.(AUD) This cost together with the prop fleets, infrastructure and labour costs/entitlements, must come to somewhere near $750mill.(AUD). Which is my guesstimate!

Secondly. It is true KD had around 60 percent of the regional market, when it was purely a prop operator. Since then the world has turned again and Qantaslink is now a permanent and ferocious competitor on virtually all of KD's prior runs. In an earlier day KD enjoyed a virtual monopoly on these runs and accordingly generated generous profits. Those days are now gone. This is what I meant by my earlier comment concerning the 'post Ansett reality'..

Finally. Regional airline economics in Australia work very differently from those that applied in the pre September 11 markets of the northern hemisphere.

Northern hemisphere markets have virtually have millions and millions of potential and actual customers. Carriers compete with each other on the basis of product quality as well as price. Accordingly, RJ's progressively replaced props on regional routes in Europe and the USA and RJ's pionered new 'hub bypassing' routes.

Australia is not a populous nation and regional airlines survive and compete on the basis of cost alone. This is why city pair distances below 400 miles are and will remain turbo-prop markets. We simply do not have sufficient population to offer expensive product innovations (such as the CRJ) on regional routes. This is the reason why the CRJ was originally targetted at the loss making Ansett secondary markets.

Unfortunately, this experiment by Ansett of replacing a 'big' jet with a 'little' jet backfired with the market and QF has cleaned up with Bae146 and B717 capacity.

In summary, there are no competitive 'regional' markets in Australia where KD's cold galley 'no-frills' RJ's can be deployed with the expectation of reasonable profits.

Think about what I have said!!!

The Oracle!
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Old 28th Oct 2001, 07:26
  #52 (permalink)  
 
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Good ridddance for MLC. Let me put this to you.When asked at one of her roadshows not too long ago,how to improve morale in the company & she reply's that its not her problem, its ours. Need I say more
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Old 28th Oct 2001, 09:33
  #53 (permalink)  

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Hi GoGirl. Been away?

VMCA. Since when has there been a "Morale Managers" position in the AN group? I had one manager, when asked the same question, opened a draw & took out an invisible box of morale & told us to spread it around!

I didn't think we had much in the way of good management at the AN group, but I know the good ones, even when they wouldn't hold your hand. If you knew there was a problem & you couldn't fix it personally, you sent it up the chain. I can assure you that the chain didn't end where MLC was, it went higher.

Managers-

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Old 28th Oct 2001, 13:12
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betedete

I think you will find KD were TOLD by their owners management (AN) where to and where not to deploy the CRJ operation. I also think you will find that KD management resisted the subsequent deployment but were overriden!

VMCA

The same situation could well apply to your observations. After Sep 14 the morale 'problem' was no longer hers, it was that of the 'administator'and as we are all 'creditors', it could well be said 'it our problem'!

I know for a fact that there is much much more to this story than has been portrayed here.

ding

[ 28 October 2001: Message edited by: dingo084 ]
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Old 28th Oct 2001, 13:50
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Dingo, thankyou. That's exactly my point. They were told but it wasn't MLC who tried to stop it, the previous management did. She just went along with it when she got in. Poor management skills and that's why she's gone.

If there's more to it, and you seem to be sure that there is, let everyone know. Personally, I'd love to know. I somehow doubt it but here's your chance to elaberate.

[ 28 October 2001: Message edited by: betedete ]
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