Merged: QANTAS/ALAEA EBA
SickofQF:
Nope, passengers abandoning a sinking rat.
As for Mr. Dixon, my guess is that he neither knows nor cares what's happening with delays - yet.
He doesn't know because narcissists make it very clear (I don't really understand how they do this) what they want to hear and what they don't want to hear. For example, never correct a narcissist when they make a mistake, even if it's only a minor slip, you will earn their undying hatred.
Since narcissists have penetrated management from the top all the way down, you can be sure that bad news is being carefully filtered out at each level, and what can't be filtered out is being blamed on mechanical failure or anything but the engineers dispute. So nobody in senior management yet has any idea of the scope of what's happening.
Mr. Dixon will only "get the message" when it is passed down to him by someone he sucks up to, be it a Politician, large shareholder, or a Senior business person whose Board he wishes to one day join. He won't get the message relayed up to him by the little unimportant people who work for him.
As for customers and customer complaints, he doesn't give a Flying F**k, remember his letter to the residents of Hamilton Island?
I suggest that QF is going to suffer serious deterioration before you get a moment of Mr. Dixon's attention.
Rat abandoning a sinking ship perhaps............
As for Mr. Dixon, my guess is that he neither knows nor cares what's happening with delays - yet.
He doesn't know because narcissists make it very clear (I don't really understand how they do this) what they want to hear and what they don't want to hear. For example, never correct a narcissist when they make a mistake, even if it's only a minor slip, you will earn their undying hatred.
Since narcissists have penetrated management from the top all the way down, you can be sure that bad news is being carefully filtered out at each level, and what can't be filtered out is being blamed on mechanical failure or anything but the engineers dispute. So nobody in senior management yet has any idea of the scope of what's happening.
Mr. Dixon will only "get the message" when it is passed down to him by someone he sucks up to, be it a Politician, large shareholder, or a Senior business person whose Board he wishes to one day join. He won't get the message relayed up to him by the little unimportant people who work for him.
As for customers and customer complaints, he doesn't give a Flying F**k, remember his letter to the residents of Hamilton Island?
I suggest that QF is going to suffer serious deterioration before you get a moment of Mr. Dixon's attention.
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PAF,
About 240 years ago, some people considered they were getting the shaft from their 'masters'. That they were being milked and not getting much back in return.
They decided they weren't going to stand for it anymore. They appealed to their 'masters' and it all fell on deaf ears. Eventually they put on a blue that was damaging to both them and their 'masters' and other third parties. This led to the creation of that bastion of the capitalist system the USA. If you were around in those days what would have been your advice to the Founding Fathers?
About 240 years ago, some people considered they were getting the shaft from their 'masters'. That they were being milked and not getting much back in return.
They decided they weren't going to stand for it anymore. They appealed to their 'masters' and it all fell on deaf ears. Eventually they put on a blue that was damaging to both them and their 'masters' and other third parties. This led to the creation of that bastion of the capitalist system the USA. If you were around in those days what would have been your advice to the Founding Fathers?
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It's starting to work
From Crikey.com.au12 . Qantas trip a Fawlty Towers fever dreamDisgruntled Qantas passenger John Sneddon writes:Last week I was prepared to give Qantas CEO Geoff Dixon the benefit of the doubt when listening to his opposition to a 5% pay rise for engineers. However having attempted to fly from Brisbane to Sydney on the 10.15am Qantas flight (QF517) on Saturday morning I am not so sure. My experience was like a Fawlty Towers fever dream. Upon arrival at the airport nice and early with 2 excited children (aged 5 and 3) in tow, my wife and I were notified our flight would be delayed 20 minutes due to the late arrival of our aircraft. Initially we didn't mind the short delay as we had the opportunity to ensure we were all seated together and calm down our excited offspring. However the delay was quickly bumped out another 20 minutes for good measure. We were then told our plane had arrived but we would be delayed another half an hour while they repaired a water leak in the luggage hold. After 30 minutes we were told we would be delayed further while they "sourced" (their word) a replacement piece of hose. We were then told Qantas needed a new plane which would arrive in 20 minutes "or so". The next announcement informed us the new aircraft would leave in 1 hour and ten minutes or "perhaps a little longer". Passengers who had connecting international flights were understandably irate and had to deal with a cynical spokesandroid sorely lacking in PR skills (who incidentally, bore a striking resemblance to the Steve Vizard Qantas steward character -- he didn't hum the opening bars to Les Miserables, but you get the picture). My wife was informed that no refreshments would be provided to our young children, because they didn't deserve it "yet". She was urged to "Read [her] contract. We just agree to get you from A to B, not get you there on time." I must remember to look for that line in the next "I still call Australia home" advertising campaign.When the plane finally arrived, several flights were squeezed onto the one aircraft, creating mayhem with the boarding passes. Passengers who finally got to the departure gate were sent back to the aforementioned spokesandroid to get new boarding passes; a technicality which had not occurred to management until they invited passengers to board the aircraft. When we finally got our new boarding passes, I discovered the kids and I were seated about 20 rows from my wife, which had the potential to cause a few difficulties if one child needed the toilet mid-flight. When I pointed this out I was informed by a frustrated screen jockey there were no vacant seats around me and I would have to "deal with it". By now I regarded this inconvenience as the least of my worries, and happily agreed to do so. But once the aircraft's doors were closed I was amused to discover an empty seat right next to me which the long-suffering flight attendants permitted my wife to sit in once we were airborne. Not that we got into the skies in a hurry. We had to sit on the tarmac for another 20 minutes because (wait for it) ... they couldn't get one of the jet engines started! (I swear to God I'm not making this up) When the cabin crew announced that they needed to find some gizmo called an "air starter", the entire plane erupted in hysterical laughter. It was a touching moment. The passengers had bonded together in the face of almost comical adversity. By now we were beyond caring and actually starting to enjoy the show. The next announcement was a classic. We were told to not worry about the smoke off the starboard bow because that was just the exhaust from the elusive "air starter" and not a sign that the plane was on fire. Even the cynical amongst us started to belly-laugh. One wit seated near me asked if we were actually bound for Yogyakarta. I know the joke was in bad taste but I guess you had to be there. Eventually the plane took off 3 hours late. You may regard this as just another whinging passenger story but it was so comical as to be a cause for concern. I heard one man complain that his earlier flight was delayed and he was bumped onto our farcical flight. So that was potentially 2 or 3 flights merged into one. I assume there is some sort of cost benefit in that, but there was no suggestion of this being shared with the frustrated passengers. My wife also overheard the cabin staff saying rolling delays were being experienced as a result of fog at Brisbane airport, but the fog had certainly cleared when we arrived at the airport at 8.30am and we were never informed the situation was the result of bad weather. The cabin crew were understandably pleased that they only had to make 2 flights that day instead of 4. Whether the farce was caused by fog, the late arrival of our aircraft, a leaky hose, insufficient spare parts, a boarding pass stuff up, or a jet engine that wouldn’t start, remains to be seen. Perhaps it was a combination of all of these factors. The messages we received were so conflicting that I will honestly never know.Whatever it was, it was a PR nightmare, and its timely proximity to Geoff Dixon's assertions that a 5% pay rise for engineers was something he was prepared to descend into the trenches for made the experience all the more difficult to swallow. There was however a positive for Qantas management to consider when they review this incident (assuming they ever actually do so). The flight attendants were marvellous. The poor wretches had to handle the antagonism of frustrated passengers and present a smiling face when confronted by the prolonged and embarrassing incompetence of their employer. When the passengers laughed at Qantas, they laughed with us, and who could blame them? They handled their job with aplomb and calmed the situation down admirably.If only the spokesandroid had been more like the cabin crew.Send your tips to [email protected], submit them anonymously here or SMS tips and photos to 0427 TIP OFF.Comment on this articleSend this article to a friendBack to Index--------------------------------------------------------------------------------
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Delays Out West!!!!
I HEAR THEY ARE HAVING FUN IN THE WEST THESE LAST COUPLE OF DAYS..5 INTERNATIONAL DELAYS YESTERDAY,ALL BEFORE 10AM..AIRCRAFT BROKEN,AIRCRAFT SWAPS, LACK OF LICENSES... AND NOT FORGETTING LACK OF MORALE..WHAT THE F
CK'S HAPPENED TO QF'S 767S THESE DAYS????...2 YRS AGO THEY WERE IN PRISTINE CONDITION!!!..
CK'S HAPPENED TO QF'S 767S THESE DAYS????...2 YRS AGO THEY WERE IN PRISTINE CONDITION!!!..
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PAF , are you suggesting that management
go up to the gate and talk to the disgruntled passengers?
I would like to see that as well, after all they are the ones
who really caused these delays arn't they!!
go up to the gate and talk to the disgruntled passengers?
I would like to see that as well, after all they are the ones
who really caused these delays arn't they!!
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Forstaff has issues
21 May 2008
TO: ALAEA MEMBERS - FORTAFF AVALON
RE: FORSTAFF EBA UPDATE 21 MAY
The Unions met with Management yesterday to pursue improved wages & conditions for
your EBA. The ALAEA were represented by Federal Secret&-Steve Purvinas, Industrial
Officer-Brad Stewart and Workplace Representatives Gus Shea, Tom Rozario, Yusoff
Abdul Ghani and George Andrades (Paras Parasram & Stephen Thorpe were apologies).
Whilst the negotiations covered outstanding clauses for the Agreement, the following key
issues were discussed yesterday with management;
1. The ALAEA has unequivocally rejected a 3% wage increase and on the basis of current
inflation. We have advised Forstaff that we are seeking 6% pa.
2. The union is not seeking changes to the overtime banking clauses and is adamant that
the status quo remain.
3. The parties have agreed in principle to remove reference to XPT in the disputes settling
procedure.
4. The parties are at odds with the $1,000 performance bonus and have not reached
agreement. The ALAEA has concerns about links to performance pay that we have no
control over.
5. The ALAEA is not convinced that a new agreement is necessary on the basis that the
current agreement still stands. If we were to accept a "workchoices agreement" we may
lose some conditions. As it stands members at Forstaff can remain on their existing terms
and conditions whilst receiving flow on wage rises from Qantas. Management were
advised that we will only be supporting a new agreement if wages and conditions are
improved.
After the meeting with management your Workplace Representatives met with ALAEA
union officials to discuss appropriate steps for members to take Protected Industrial Action
(PIA), should we not reach agreement with Forstaff Aviation. This step would only be
taken if members indicated to us that this is the direction they wished to travel in order to
apply pressure on Forstaff Aviation to agree to our terms for a new EBA.
"To undertake supervise and cerliy for the safety of all who ly. "
l
TO: ALAEA MEMBERS - FORTAFF AVALON
RE: FORSTAFF EBA UPDATE 21 MAY
The Unions met with Management yesterday to pursue improved wages & conditions for
your EBA. The ALAEA were represented by Federal Secret&-Steve Purvinas, Industrial
Officer-Brad Stewart and Workplace Representatives Gus Shea, Tom Rozario, Yusoff
Abdul Ghani and George Andrades (Paras Parasram & Stephen Thorpe were apologies).
Whilst the negotiations covered outstanding clauses for the Agreement, the following key
issues were discussed yesterday with management;
1. The ALAEA has unequivocally rejected a 3% wage increase and on the basis of current
inflation. We have advised Forstaff that we are seeking 6% pa.
2. The union is not seeking changes to the overtime banking clauses and is adamant that
the status quo remain.
3. The parties have agreed in principle to remove reference to XPT in the disputes settling
procedure.
4. The parties are at odds with the $1,000 performance bonus and have not reached
agreement. The ALAEA has concerns about links to performance pay that we have no
control over.
5. The ALAEA is not convinced that a new agreement is necessary on the basis that the
current agreement still stands. If we were to accept a "workchoices agreement" we may
lose some conditions. As it stands members at Forstaff can remain on their existing terms
and conditions whilst receiving flow on wage rises from Qantas. Management were
advised that we will only be supporting a new agreement if wages and conditions are
improved.
After the meeting with management your Workplace Representatives met with ALAEA
union officials to discuss appropriate steps for members to take Protected Industrial Action
(PIA), should we not reach agreement with Forstaff Aviation. This step would only be
taken if members indicated to us that this is the direction they wished to travel in order to
apply pressure on Forstaff Aviation to agree to our terms for a new EBA.
"To undertake supervise and cerliy for the safety of all who ly. "
l
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Queensland Struggling Pansies are now Can Do Legends
With the crew down 5 lames they manage to achieve what they can't when they have the following, a full crew,over timers, rec leave and morale. Phase check completed and back by 4am.
At least the engineer from engine shop didn't succumb to QF pressure, giving no deferral for the boro.
I don't think he's part of the union but good on him.
I give up whats the point, you guy's probably voted to accept a lesser offer last EBA and voted for Howards I.R. Laws
You guys are all talk support your union or shut up.
With the crew down 5 lames they manage to achieve what they can't when they have the following, a full crew,over timers, rec leave and morale. Phase check completed and back by 4am.
At least the engineer from engine shop didn't succumb to QF pressure, giving no deferral for the boro.
I don't think he's part of the union but good on him.
I give up whats the point, you guy's probably voted to accept a lesser offer last EBA and voted for Howards I.R. Laws
You guys are all talk support your union or shut up.
Last edited by blackbook; 22nd May 2008 at 06:37.
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It is not the Lame who is willfully delaying Aircraft that was happening before PIA. It is just more delays now due to the goodwill gone and no one on OT to supplement manpower during heavy workloads. We no longer work thru mealbreaks to see the aircraft out on time. Looking for someone to blame its QE management. We are sick of being insulted.
Mr Dixon took a 26% increase last year. He says it will cost 360 million over the next 3 years to give 36,000 employees who pay taxes, high fuel costs,inflation, and higher interest rates a pay rise just above inflation. The company will make 4.5 billion over the next 3 years. Its peanuts. His 170 million dollar fund to sink us is half that money so wheres the common sense.Why are you trying to kill this Airline.Thank god the takeover bid failed (60 million GD would have made) or QF would have collapsed with their new owners Allco.
Our simple OT bans starting to have impact as MEL's expire and OSIP work backlogs. Let the scabs have their money. But don't give QF any reason to let them or their QF management Lames (most who haven't lifted a tool in decades) near the aircraft for the safety of the flying public.
I don't think there is any need to do anything more at this stage.Its only early days. As the shareholders lose confidence and the delays continue the share price will fall and that hits GD in his own wallet.The only thing he cares about. He would love nothing more than a big fight and it be over. Lets drain them.SLOW AND STEADY WILL WIN THE RACE. They can't continue like this or they will lose their business and first class pax and we all know they are the ones where we make our money.
QF just announced 4% increase infares due oil prices,thats on top of 3% a few months ago. Where is the ACCC> most of Qantas fuel is hedged at $95 a barrell.
Mr Dixon took a 26% increase last year. He says it will cost 360 million over the next 3 years to give 36,000 employees who pay taxes, high fuel costs,inflation, and higher interest rates a pay rise just above inflation. The company will make 4.5 billion over the next 3 years. Its peanuts. His 170 million dollar fund to sink us is half that money so wheres the common sense.Why are you trying to kill this Airline.Thank god the takeover bid failed (60 million GD would have made) or QF would have collapsed with their new owners Allco.
Our simple OT bans starting to have impact as MEL's expire and OSIP work backlogs. Let the scabs have their money. But don't give QF any reason to let them or their QF management Lames (most who haven't lifted a tool in decades) near the aircraft for the safety of the flying public.
I don't think there is any need to do anything more at this stage.Its only early days. As the shareholders lose confidence and the delays continue the share price will fall and that hits GD in his own wallet.The only thing he cares about. He would love nothing more than a big fight and it be over. Lets drain them.SLOW AND STEADY WILL WIN THE RACE. They can't continue like this or they will lose their business and first class pax and we all know they are the ones where we make our money.
QF just announced 4% increase infares due oil prices,thats on top of 3% a few months ago. Where is the ACCC> most of Qantas fuel is hedged at $95 a barrell.
Last edited by dr skydrol; 22nd May 2008 at 09:58.
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Is it the aircraft or the website! Sorry Geoff, no F U
http://www.qantas.com.au/flightinfo/...rturesResponse
Sorry
The site is experiencing difficulties at present. We apologise for the delay and will endeavour to restore operations as soon as possible. Please try again in a short while. In the meantime you can contact us on 131313 within Australia or your nearest Qantas office for all other enquiries.
Thank you for your patience.
Must be getting embarrassing!
Been shutdown a few days now.
Sorry
The site is experiencing difficulties at present. We apologise for the delay and will endeavour to restore operations as soon as possible. Please try again in a short while. In the meantime you can contact us on 131313 within Australia or your nearest Qantas office for all other enquiries.
Thank you for your patience.
Must be getting embarrassing!
Been shutdown a few days now.
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I'm most impressed with the support for calls on Mr Dixon to back down
on the 3% line in the sand. His latest announcement claims the majority
of qantas employees/unions are happy with 3% and the qantas LAMES
are being greedy and unreasonable in their 5% claim.
Seems the meeting of ALL unions representing Qantas workers voted
yesterday to support the lames and call on qantas to ditch the 3% limit
that Qantas dictates, is he mentally blind to the reality in the workplace.
Hopefully with Mr Lawence, ACTU secretary, leading the charge with a
fistfull of union resolutions and public condemnations, some satisfactory
agreement for all will be reached soon.
on the 3% line in the sand. His latest announcement claims the majority
of qantas employees/unions are happy with 3% and the qantas LAMES
are being greedy and unreasonable in their 5% claim.
Seems the meeting of ALL unions representing Qantas workers voted
yesterday to support the lames and call on qantas to ditch the 3% limit
that Qantas dictates, is he mentally blind to the reality in the workplace.
Hopefully with Mr Lawence, ACTU secretary, leading the charge with a
fistfull of union resolutions and public condemnations, some satisfactory
agreement for all will be reached soon.
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Power?
The last week has shown without doubt that QF Engineering is hopelessly addicted to overtime and goodwill for survival. The management have, through ruthless slashing, handed over the rope that suspends the guillotine over its head. The company committed itself to this dependancy. The dealer is playing hard ball. QF Engineering now shakes on its foundations like a once high class hooker going cold turkey. The inescapable realisation that without it to prop her up, she's just an empty shell. She's sold all the self respect she had, and now her children have turned against her. Her name? MS GREEDY
P.S. Just the thought of where we would be, under four more years of liberal bullying and sanctioned suppression. Gives me nightmares. GD's repetative nightmares? APA's final day, and election night! Then again it has to be asked, does he care?
P.S. Just the thought of where we would be, under four more years of liberal bullying and sanctioned suppression. Gives me nightmares. GD's repetative nightmares? APA's final day, and election night! Then again it has to be asked, does he care?
Last edited by Acute Instinct; 22nd May 2008 at 11:09.
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Division1 my sentiments excatly.
Thats why we must be patient stick to our OT bans whilst the government unravels the "workchoices" laws which still aren't in our favour.As they see the PIG headed CEO's we are faced with I am sure they will come to our aid.We aren't asking for anything stupid.
What a slap in the face to Mr 'Dick'son if in a few months when the TWU EBA runs out and the AWU at the end of the year. Then together one after another we begin 4 hour stop works one after the other. What a retirement gift to Dicky.Can you imagine the backlash.Remembered as the failure he is. And rather sour as he cashes in his share bonus' at 50 cents a piece.
Be patient guys don't hound our Alaea exec's who are doing a brilliant job. This won't be won overnight. We must give them our fullest support. Delays cost $350 a minute. Not doing OT costs us nothing. If the OT is hurting get a part time job in the meantime with all those days off you are having now.
Thats why we must be patient stick to our OT bans whilst the government unravels the "workchoices" laws which still aren't in our favour.As they see the PIG headed CEO's we are faced with I am sure they will come to our aid.We aren't asking for anything stupid.
What a slap in the face to Mr 'Dick'son if in a few months when the TWU EBA runs out and the AWU at the end of the year. Then together one after another we begin 4 hour stop works one after the other. What a retirement gift to Dicky.Can you imagine the backlash.Remembered as the failure he is. And rather sour as he cashes in his share bonus' at 50 cents a piece.
Be patient guys don't hound our Alaea exec's who are doing a brilliant job. This won't be won overnight. We must give them our fullest support. Delays cost $350 a minute. Not doing OT costs us nothing. If the OT is hurting get a part time job in the meantime with all those days off you are having now.
Last edited by dr skydrol; 22nd May 2008 at 11:09.
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Although delay numbers look like they are up, honestly ask yourself what's changed. Dispatch reliaility in most ports has been poor (to say the very least) for some time before O/T bans started, and it will never get any better under this management. As in the words of a great man, "A little less conversation, a little more action please..."
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Radioland
Yet another radio piece. This time its the ABC!http://www.abc.net.au/rn/breakfast/s...08/2246480.htm
Just hit download audio! Great Job Fed Sec
Just hit download audio! Great Job Fed Sec
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I don't think anyone has gone too fix VH-QPA. The mud map at work shows the aircraft blanked out and off the schedule for the next 7 days. Oh dear what a shame never mind I'm sure DC or MH will find some so-so suitably licensed Singaporean bloke from their World's Best Practice facility up there to repair it and send it back to us, so we can Black Ban it, for them.
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liar liar
Dicksons resorted to lying now. Recent press release quotes him as saying that last Sept we recieved 3% plus $2000. Agree with the $2000 bonus but last EBA pay increase Jan 1st 2006. also stated we all recieve 10% super already.
Offers of another 1 % Super is also a con This in real terms equates to approx 1/2% wage increase of which you cant touch untill your 65. Given that the Government has already mooted that it may increase employer contributions to 10%, its probably something we will end up getting anyway
Offers of another 1 % Super is also a con This in real terms equates to approx 1/2% wage increase of which you cant touch untill your 65. Given that the Government has already mooted that it may increase employer contributions to 10%, its probably something we will end up getting anyway
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Chicken Little is at it again
First it was “the Asian financial crisis”, then came “9/11”, then it was “SARS”, and then “bird flu”. Now Qantas’ Chicken Little CEO is screaming the sky will fall in because of high oil prices. Whatever. We’ve heard it all before Geoff!
Granted, there is the usual panicked bleating in the media about high oil prices. But read a little deeper than the headlines and you’ll find these gems:
“BOEING believes oil prices will come back to a longer-term trend of $US70-80 a barrel.
The US aerospace giant does not itself analyse fuel trends but said the long-term view of its advisers was that the oil price would decrease.”
http://www.theaustralian.news.com.au/story/0,25197,23741779-23349,00.html.
And…
“Economists, however, believe crude could soon fall back to $US100, taking pressure off petrol and aviation fuel prices.” http://www.theaustralian.news.com.au/story/0,25197,23744412-23349,00.html
My point is, GD would have the best analysts in the business looking at fuel price trends, so he knows that these high oil prices are a speed hump and that they will eventually fall. He is using that knowledge and the current blip in prices to drive down wages.
A few more interesting points:
Airfares have been jacked up in Aus, as they have in the US. Chicken Little is also pointing to the US airline industry as a warning to us all. Job losses, mergers, bankruptcies, capacity cuts. But there are big differences between the US and Australia and their respective airlines:
Well how many times has GD said he is angling for capacity growth, not reduction? Orders for 65 B787s,12 A380s, umpteen A320s/A321s and more B737-800s to come.
And as you can imagine, like trying to claw back interest rate falls from the banks once they start falling, once airfares go up, they’ll probably stay up. The world airline industry will want to recoup some of those profits lost to high oil prices, so Qantas will benefit from that aspect of “competition”.
My point: all these factors will help pad Qantas’ bottom line. Both lots of compensation from Airbus and Boeing alone could pay for a 5% pay rise for ALL Qantas staff over the next few years and still leave the company with tens of millions in change. In a few years time, the US will be out of recession and helping drive the world economy; India, China, indeed the whole region will still be booming; our new fleet will be operating very efficiently both in terms of reduced maintenance costs per airframe and fuel, and things will be on the up and up for Qantas.
Has anyone heard QF announce forecast profit falls lately? Exactly. The silence is deafening.
And MY bottom line? I think QF can afford 5% for everyone, not just us.
Granted, there is the usual panicked bleating in the media about high oil prices. But read a little deeper than the headlines and you’ll find these gems:
“BOEING believes oil prices will come back to a longer-term trend of $US70-80 a barrel.
The US aerospace giant does not itself analyse fuel trends but said the long-term view of its advisers was that the oil price would decrease.”
http://www.theaustralian.news.com.au/story/0,25197,23741779-23349,00.html.
And…
“Economists, however, believe crude could soon fall back to $US100, taking pressure off petrol and aviation fuel prices.” http://www.theaustralian.news.com.au/story/0,25197,23744412-23349,00.html
My point is, GD would have the best analysts in the business looking at fuel price trends, so he knows that these high oil prices are a speed hump and that they will eventually fall. He is using that knowledge and the current blip in prices to drive down wages.
A few more interesting points:
- Qantas and Jetstar aircraft are flying slower to save fuel. “The unannounced moves, which follow similar actions by US airlines, are expected to save the carriers millions of dollars and reduce upward pressure on airfares… We have been conducting a trial where aircraft flights are taking a bit longer and burning less fuel. Early indications are that we are seeing positive savings in terms of fuel… This practice has led to fuel savings and lower carbon emissions without any significant impact on flight times." http://www.theaustralian.news.com.au/story/0,25197,23744412-23349,00.html. Once those procedures are locked in, does anyone sane think a company would willingly relinquish those savings? And does a passenger really care if it takes 6 minutes longer to get to Perth. Indeed, it could be a selling point if QF badges it as “a green-house gas reduction measure”.
- Qantas is increasing airfares. I quote an article in today’s Australian Business Backpage entitled “Dixon may be lucky buyout failed”: “The oil prices might be higher but so are airfares… so long as Dixon can get people paying higher fares and keep travelling, he is fine.” http://www.theaustralian.news.com.au/story/0,25197,23743151-5013408,00.html. (This is a very interesting article and I urge everyone to read it in its entirety. I have quoted from it further below.)
- We are experiencing massive growth in air travel in the Asia Pacific region. Higher airfares may cut a few percentage points off this growth, but so what. There is that much growth in the pipeline that airlines simply can’t keep up. Not in capacity, nor pilots nor engineers. This growth will more than compensate for any drop-offs in demand from the US slowdown/recession. And keep in mind that the US is still an economic behemoth, so there will always be demand to a greater or lesser extent for air travel from that market.
- The $200 million compensation from Airbus for A380 delays, and Qantas’ own forecast that compensation from Boeing for the B787 delays will be greater than that of the Airbus compensation; http://www.theaustralian.news.com.au/story/0,25197,23741631-23349,00.html.
- The possible sale of 40% of the Frequent Flyers program: another $1 billion. http://www.theaustralian.news.com.au/story/0,25197,23743151-5013408,00.html.
- Qantas breaking into the next emerging market: Vietnam/South East Asia with its stake in Pacific Airlines.
Airfares have been jacked up in Aus, as they have in the US. Chicken Little is also pointing to the US airline industry as a warning to us all. Job losses, mergers, bankruptcies, capacity cuts. But there are big differences between the US and Australia and their respective airlines:
- The US is heading for or in recession.
- The US airline industry is a bloated dead man walking. It needs structural adjustment to survive. So many of the airlines are flogging a dead horse by persisting with flying non-profitable routes with thirsty, expensive older aircraft. Change, downsizing etc is inevitable.
- We are ideally positioned to cash in on the new driver of the world economy, the Asia-Pacific region. Boeing says that 90% of its aircraft sales are to this region. Clearly, it’s where the growth is! The US is losing its position as the sole engine of the world’s economy.
- QF “going forward” will be flying fuel-efficient aircraft types. QF has made the biggest order of B787s, after all!
- QF has Jetstar to pick up lower profit routes.
Well how many times has GD said he is angling for capacity growth, not reduction? Orders for 65 B787s,12 A380s, umpteen A320s/A321s and more B737-800s to come.
And as you can imagine, like trying to claw back interest rate falls from the banks once they start falling, once airfares go up, they’ll probably stay up. The world airline industry will want to recoup some of those profits lost to high oil prices, so Qantas will benefit from that aspect of “competition”.
My point: all these factors will help pad Qantas’ bottom line. Both lots of compensation from Airbus and Boeing alone could pay for a 5% pay rise for ALL Qantas staff over the next few years and still leave the company with tens of millions in change. In a few years time, the US will be out of recession and helping drive the world economy; India, China, indeed the whole region will still be booming; our new fleet will be operating very efficiently both in terms of reduced maintenance costs per airframe and fuel, and things will be on the up and up for Qantas.
Has anyone heard QF announce forecast profit falls lately? Exactly. The silence is deafening.
And MY bottom line? I think QF can afford 5% for everyone, not just us.
Join Date: Jan 2008
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.............and let's not forget the strong AU$, buys you a lot of fuel, even with high oil prices. It's all relative.
2 years ago -AU$ half the value it is now,barrel of oil half the price it is now. End of that argument for now !
2 years ago -AU$ half the value it is now,barrel of oil half the price it is now. End of that argument for now !