Bonus for Qantas staff?
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Bonus for Qantas staff?
l see Qantas has announced there profit for the year.
Have seen no mention of a staff bonus.
Has anybody heard anything in regards to this?
Have seen no mention of a staff bonus.
Has anybody heard anything in regards to this?
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PAF. Stick to the air force, mate. There's your bonus for today.
QF Staff have been given bonus' of $1000 in shares when the company profit was significantly less than that announced today. So why not today?
The profit QF has achieved is still relatively healthy for an airline in the current climate. Primarily due to the staff. Excluding J* whose profit was pitiful.
Seems more likely to me that the midget rabid mongrel GD is screwing the staff that little bit more. He is making more of a point - "oh no the sky is STILL falling in!".
It has nothing to do with a 30% reduction in profit.
QF Staff have been given bonus' of $1000 in shares when the company profit was significantly less than that announced today. So why not today?
The profit QF has achieved is still relatively healthy for an airline in the current climate. Primarily due to the staff. Excluding J* whose profit was pitiful.
Seems more likely to me that the midget rabid mongrel GD is screwing the staff that little bit more. He is making more of a point - "oh no the sky is STILL falling in!".
It has nothing to do with a 30% reduction in profit.
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August 17, 2006 11:37am
QANTAS is set to increase its fuel surcharge on ticket prices, after blaming higher fuel costs for a 30 per cent fall in annual profit.
Net profit for 2005/06 was $479.5 million, down 30.4 per cent on the previous year.
The airline's fuel costs rose to $2.80 billion, from $1.93 billion in 2004/05, a 45.1 per cent increase from the previous year.
Anticipating the result, Qantas pilots had earlier called on the airline to end its wage freeze, saying the company could not cry poor to staff while posting multi-million dollar profits.
Chief executive Geoff Dixon said the airline's petrol pain was far from over, predicting the fuel bill will rise further this financial year.
"While nobody can predict how high fuel prices will go or how long they will stay at these levels, we are forecasting a total fuel bill of $3.9 billion for 2006/07," he said.
He said the airline was considering lifting its fuel surcharge, with an announcement to be made either tomorrow or Saturday.
But he added the increase would only affect international routes.
Qantas introduced a fuel surcharge on tickets in May 2004 and last lifted it in April this year in response to rising fuel costs.
That increase took the surcharge on international flights to $98, while the surcharge on Qantas trans-Tasman flights was lifted to $56 and on Jetstar trans-Tasman flights to $45.
Qantas, which is changing its business practices to improve efficiency, said fuel was continuing to have a severe impact.
But the airline predicted a profit result for the coming year broadly similar to today's result.
"While we expect the acceleration of reforms throughout the group to continue to improve productivity and efficiency, they will have a cost," it said.
"Nevertheless, we remain confident that after these higher costs, the group will deliver a result in line with the 2005/06 result."
Pay
Qantas told the Australian and International Pilots Association (AIPA) this week there would be no pay rise offered in the current enterprise bargaining negotiations for short haul pilots.
The company offered a 3 per cent cash payment, saying it was all it could afford.
But AIPA general manager Peter Somerville said that with a $500 million profit result, Qantas was telling one story to its market and another to its workforce.
"On the hand the company is crying poor, instigating a pay freeze, threatening to spread Australian Workplace Agreements and establishing internal competition through JetStar to drive wages and conditions down," Mr Somerville said in a statement.
"At the same time they are telling the market they have made what analysts predict to be a $500 million profit and increasing packages to top executives."
Mr Somerville said the airline was risking its good name by crying poor, while at the same time posting huge profits and awarding hefty bonuses to its executives.
"Shareholders and analysts need to be asking how driving down wages, conditions and standards will do anything but undermine the long-term interests of the airline," he said.
"Shareholders and analysts should share our concerns that the action of Qantas management may well impact on the reputation of Qantas as a great Australian company."
QANTAS is set to increase its fuel surcharge on ticket prices, after blaming higher fuel costs for a 30 per cent fall in annual profit.
Net profit for 2005/06 was $479.5 million, down 30.4 per cent on the previous year.
The airline's fuel costs rose to $2.80 billion, from $1.93 billion in 2004/05, a 45.1 per cent increase from the previous year.
Anticipating the result, Qantas pilots had earlier called on the airline to end its wage freeze, saying the company could not cry poor to staff while posting multi-million dollar profits.
Chief executive Geoff Dixon said the airline's petrol pain was far from over, predicting the fuel bill will rise further this financial year.
"While nobody can predict how high fuel prices will go or how long they will stay at these levels, we are forecasting a total fuel bill of $3.9 billion for 2006/07," he said.
He said the airline was considering lifting its fuel surcharge, with an announcement to be made either tomorrow or Saturday.
But he added the increase would only affect international routes.
Qantas introduced a fuel surcharge on tickets in May 2004 and last lifted it in April this year in response to rising fuel costs.
That increase took the surcharge on international flights to $98, while the surcharge on Qantas trans-Tasman flights was lifted to $56 and on Jetstar trans-Tasman flights to $45.
Qantas, which is changing its business practices to improve efficiency, said fuel was continuing to have a severe impact.
But the airline predicted a profit result for the coming year broadly similar to today's result.
"While we expect the acceleration of reforms throughout the group to continue to improve productivity and efficiency, they will have a cost," it said.
"Nevertheless, we remain confident that after these higher costs, the group will deliver a result in line with the 2005/06 result."
Pay
Qantas told the Australian and International Pilots Association (AIPA) this week there would be no pay rise offered in the current enterprise bargaining negotiations for short haul pilots.
The company offered a 3 per cent cash payment, saying it was all it could afford.
But AIPA general manager Peter Somerville said that with a $500 million profit result, Qantas was telling one story to its market and another to its workforce.
"On the hand the company is crying poor, instigating a pay freeze, threatening to spread Australian Workplace Agreements and establishing internal competition through JetStar to drive wages and conditions down," Mr Somerville said in a statement.
"At the same time they are telling the market they have made what analysts predict to be a $500 million profit and increasing packages to top executives."
Mr Somerville said the airline was risking its good name by crying poor, while at the same time posting huge profits and awarding hefty bonuses to its executives.
"Shareholders and analysts need to be asking how driving down wages, conditions and standards will do anything but undermine the long-term interests of the airline," he said.
"Shareholders and analysts should share our concerns that the action of Qantas management may well impact on the reputation of Qantas as a great Australian company."
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what about the $180,000,000 for retrenchment/restructure if that was not spent the profit would be in line with last year. the benfit of this should show in next years profits
with everyone changing to lpg fuel should be back to $20 a barrel next year
with everyone changing to lpg fuel should be back to $20 a barrel next year
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The bonus is coming! It will be in the form of a red faced dixon, squirming and making excuses for himself on Business Sunday!!!
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Here is Dixon's letter to staff. The thing that "really gets up my goat" is that the man doesn't even have the guts to come out and say "we can't afford to give you a bonus this year". He just goes into hyena mode and says nothing.
Low life. Anyhoo, here it is:
17 August 2006
Message from the CEO - Annual Results 2005/06
QANTAS FULL YEAR FINANCIAL RESULTS
Today, the Qantas Group announced its results for the 2005/2006 financial year. Although a significant fall on last year, the result is good given the impact of escalating fuel prices. It is not, however, sufficient for long term sustainability.
I urge all staff to read the media release, issued this morning and provided below, for full details of our results.
There have been some significant achievements over the last 12 months. Yields have improved, loads have improved, our $1.5 billion Sustainable Future savings target has been met and customer service ratings are at record highs.
But despite all these achievements, which reflect the effort and dedication of thousands of staff across the Group, profits are falling. We have been running very hard to still slide backwards.
Fuel will remain our biggest challenge. This year alone fuel will add more than $1.1 billion to our costs, on top of the substantial increase in 2005/06. These are not the sort of increases that can be absorbed, nor is there any prospect of returning to 2004/05 fuel price levels in the foreseeable future.
Sustainability in this industry now means making fundamental changes to how we operate in both our new and our legacy businesses.
Earlier this week, Jetstar announced that international cabin crew will be employed on Australian Workplace Agreements (AWAs) because that is the right approach for this new business. The package will offer good conditions and the positions are heavily oversubscribed by people wanting to take on these new jobs. Although some have predictably attacked this initiative the alternative to change is not the status quo, it is irrelevance and decline. Jetstar is only opening new international routes and offering new job opportunities because it is offering low fares supported by a low cost structure. The alternative is these jobs are not created and the Qantas Group does not fly these routes.
The same can be said for the new wholly-owned Qantas freight business, Express Freighters Australia, which yesterday announced that its pilots were being employed under AWAs. This business – a growth business – will provide increased revenue, new employment for pilots and additional work volumes for Qantas engineers.
Change cannot be confined to any one of our businesses. Across the Group our achievement in reducing costs over the last three years has been underpinned by segmentation. Segmentation has given much greater transparency to costs and performance in each part of the business. We now need to move to the next phase of segmentation where Segments will move from cost centres to profit centres. Increasingly, each part of the Qantas Group must stand on its own record, recover its own cost of capital and compete within the Group for growth and investment. No one part of the business has a right to growth and investment; the test for investment and growth in each area will be the relative returns that can be achieved.
This next phase of Segmentation will have some impact on what being a Qantas employee means, with the main focus for careers, and pay and conditions, depending on the performance of the relevant segment. Our freight business, for example, needs to be more and more aligned to the Freight industry, not the airline industry. Similarly for catering, airports and engineering.
For some Qantas Group employees these changes will be subtle and, in others, have already occurred. In some areas it will mean a more fundamental change of mindset. For example, the current claim by the Australian International Pilots Association (AIPA) for a common Group seniority list that includes Jetstar, and to roll short haul, long haul and Australian Airlines pilots all into one Qantas agreement, is running totally against the tide and will never happen. Jetstar and Qantas will continue to develop as quite different and separate businesses.
There will be impacts on staff from further change and Qantas will continue to handle the impact of change on staff with sensitivity. The recent closure of the heavy maintenance base in Sydney provides a good example. Despite the magnitude of the change, all but 20 affected staff have accepted voluntary retrenchment or been placed in alternate jobs.
There are many areas in the Group where our costs are now above market, principally because of major benefits achieved from bankruptcy reorganisation by carriers in the USA, consolidation and mergers in Europe and Asia and the traditional low-cost nature of many Asian and Middle Eastern carriers. This has to be addressed and turned around. Matching our competitors' costs, providing a return on capital and achieving both these changes quickly are non-negotiable objectives: none of us has a long term future in this industry unless these objectives are achieved.
Thank you for your continuing support.
Geoff Dixon
Low life. Anyhoo, here it is:
17 August 2006
Message from the CEO - Annual Results 2005/06
QANTAS FULL YEAR FINANCIAL RESULTS
Today, the Qantas Group announced its results for the 2005/2006 financial year. Although a significant fall on last year, the result is good given the impact of escalating fuel prices. It is not, however, sufficient for long term sustainability.
I urge all staff to read the media release, issued this morning and provided below, for full details of our results.
There have been some significant achievements over the last 12 months. Yields have improved, loads have improved, our $1.5 billion Sustainable Future savings target has been met and customer service ratings are at record highs.
But despite all these achievements, which reflect the effort and dedication of thousands of staff across the Group, profits are falling. We have been running very hard to still slide backwards.
Fuel will remain our biggest challenge. This year alone fuel will add more than $1.1 billion to our costs, on top of the substantial increase in 2005/06. These are not the sort of increases that can be absorbed, nor is there any prospect of returning to 2004/05 fuel price levels in the foreseeable future.
Sustainability in this industry now means making fundamental changes to how we operate in both our new and our legacy businesses.
Earlier this week, Jetstar announced that international cabin crew will be employed on Australian Workplace Agreements (AWAs) because that is the right approach for this new business. The package will offer good conditions and the positions are heavily oversubscribed by people wanting to take on these new jobs. Although some have predictably attacked this initiative the alternative to change is not the status quo, it is irrelevance and decline. Jetstar is only opening new international routes and offering new job opportunities because it is offering low fares supported by a low cost structure. The alternative is these jobs are not created and the Qantas Group does not fly these routes.
The same can be said for the new wholly-owned Qantas freight business, Express Freighters Australia, which yesterday announced that its pilots were being employed under AWAs. This business – a growth business – will provide increased revenue, new employment for pilots and additional work volumes for Qantas engineers.
Change cannot be confined to any one of our businesses. Across the Group our achievement in reducing costs over the last three years has been underpinned by segmentation. Segmentation has given much greater transparency to costs and performance in each part of the business. We now need to move to the next phase of segmentation where Segments will move from cost centres to profit centres. Increasingly, each part of the Qantas Group must stand on its own record, recover its own cost of capital and compete within the Group for growth and investment. No one part of the business has a right to growth and investment; the test for investment and growth in each area will be the relative returns that can be achieved.
This next phase of Segmentation will have some impact on what being a Qantas employee means, with the main focus for careers, and pay and conditions, depending on the performance of the relevant segment. Our freight business, for example, needs to be more and more aligned to the Freight industry, not the airline industry. Similarly for catering, airports and engineering.
For some Qantas Group employees these changes will be subtle and, in others, have already occurred. In some areas it will mean a more fundamental change of mindset. For example, the current claim by the Australian International Pilots Association (AIPA) for a common Group seniority list that includes Jetstar, and to roll short haul, long haul and Australian Airlines pilots all into one Qantas agreement, is running totally against the tide and will never happen. Jetstar and Qantas will continue to develop as quite different and separate businesses.
There will be impacts on staff from further change and Qantas will continue to handle the impact of change on staff with sensitivity. The recent closure of the heavy maintenance base in Sydney provides a good example. Despite the magnitude of the change, all but 20 affected staff have accepted voluntary retrenchment or been placed in alternate jobs.
There are many areas in the Group where our costs are now above market, principally because of major benefits achieved from bankruptcy reorganisation by carriers in the USA, consolidation and mergers in Europe and Asia and the traditional low-cost nature of many Asian and Middle Eastern carriers. This has to be addressed and turned around. Matching our competitors' costs, providing a return on capital and achieving both these changes quickly are non-negotiable objectives: none of us has a long term future in this industry unless these objectives are achieved.
Thank you for your continuing support.
Geoff Dixon
Despite the massive increase in fuel costs Qantas managed to make $480M after tax. Correct me if I'm wrong, but as I see it, if the price of fuel hadn't skyrocketed, Qantas would have made an additional $870M in profit; if we remove the $180M once off costs for redundancy packages, then Qantas would have been looking at a profit in the order of $480 + 870 + 180 = $1.5B 
In light of this, what does Dixon do? What else but cry poor. And refuse to issue the staff a bonus. From my point of view the staff must be getting pretty damn efficient, if the efficiencies gained from recent restructuring were able to almost cancel out an unprecedented rise in the cost of fuel. Thanks from the company...? Tell 'im he's dreamin....
In light of this, what does Dixon do? What else but cry poor. And refuse to issue the staff a bonus. From my point of view the staff must be getting pretty damn efficient, if the efficiencies gained from recent restructuring were able to almost cancel out an unprecedented rise in the cost of fuel. Thanks from the company...? Tell 'im he's dreamin....
Apparently (according to Sky News) everyone (staff & customers) is being asked to "...Spare a thought for Geoff Dixon - as he's been asked to foot a $2.8Bn fuel bill..." Poor Geoff - that means he must personally be about $2.79Bn in the red - no wonder he's always so down in the dumps!
Fortunately "investors were in a good mood - sending the share price climbing..." - gee, lucky!
Further woe - "Cost cutting initiatives will only manage to cut $750M from the cost base...." ONLY another $750M...I have a few ideas where we could find the first ~$12M for that cost cutting program...
Peter Greigg obviously has pilots in his sights, based on this thinly veiled threat - acknowledging that there were "staff that deserved pay rises, as they were very hard working, and that should be recognised, whereas there were other workers who earned extremely good money for working very few hours...and as such they would be looking for efficiency gains for those employees."
How about an efficiency gain from the CEO, high level management & Board who have seen the share price - and thus the all important 'Shareholder' value - FALL 30% in the last 12 months....
Fortunately "investors were in a good mood - sending the share price climbing..." - gee, lucky!
Further woe - "Cost cutting initiatives will only manage to cut $750M from the cost base...." ONLY another $750M...I have a few ideas where we could find the first ~$12M for that cost cutting program...
Peter Greigg obviously has pilots in his sights, based on this thinly veiled threat - acknowledging that there were "staff that deserved pay rises, as they were very hard working, and that should be recognised, whereas there were other workers who earned extremely good money for working very few hours...and as such they would be looking for efficiency gains for those employees."
How about an efficiency gain from the CEO, high level management & Board who have seen the share price - and thus the all important 'Shareholder' value - FALL 30% in the last 12 months....
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Jetstar and Qantas will continue to develop as quite different and separate businesses
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"Hey everyone! Record fuel prices are affecting Qantas only"!
When will these clowns stop comparing Qantas to, lets say, banks when it comes to shareholder returns and profits?
Compare the performance of Qantas to other airlines! There's an idea!
And whilst we are at it, let's consider their rising fuel bills also!
Sick to death of hearing Dixon/ Management crying poor.
Will they take a pay freeze? (I mean in an honest way? Not a "face value" pay freeze, compensated for in other means)????
I doubt it.
When will these clowns stop comparing Qantas to, lets say, banks when it comes to shareholder returns and profits?
Compare the performance of Qantas to other airlines! There's an idea!
And whilst we are at it, let's consider their rising fuel bills also!
Sick to death of hearing
Dixon/ Management crying poor. Will they take a pay freeze? (I mean in an honest way? Not a "face value" pay freeze, compensated for in other means)????
I doubt it.
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The reality is that none of the "executive management" can do what I do (or my colleagues) reminds all of us that should Short haul and long haul be off EBA at the same time we will see just how much control management can exert over revenue...
It is his engineers, his check in staff, his ramp staff and of course his pilots that make it happen....
It isn't management.
so far AO loss $130m(approx)
J*Asia loss $100m(approx)
A330 "refurbishment $mega millions
Classic upgrade loss $100million
and of course out of all the money poured in to J* and the cross subsidy it makes only $11m from 23 aircraft! Group profit $480 million....
all the time we have surrendered another 1% of market share to our competitors...
If only we had visionary management who focused on revenue as much as cost
It is his engineers, his check in staff, his ramp staff and of course his pilots that make it happen....
It isn't management.
so far AO loss $130m(approx)
J*Asia loss $100m(approx)
A330 "refurbishment $mega millions
Classic upgrade loss $100million
and of course out of all the money poured in to J* and the cross subsidy it makes only $11m from 23 aircraft! Group profit $480 million....
all the time we have surrendered another 1% of market share to our competitors...
If only we had visionary management who focused on revenue as much as cost