Qantas boss to outline big international shake-up

[Ash W]

Dave I think the day of flag carriers went out the window many years ago, particularly with the creation of airline alliances.

As for identifying with a brand, think you are spot on about Qantas being a brand for Australian's, but for example Virgin being a brand for everyone. I think you will find that this is one reason why Jetstar for example has no real tie to the Qantas name and why the new airline will be not called Qantas.

In the future I fully expect the new airline to fly to Australia alongside Qantas aircraft (not as a replacement for), but my prediction is this airline will be mostly carrying non Australians into Australia, with Qantas mainly carrying Australian's out of oz, in other words serving two separate markets, oh with Jetstar carrying the LCC passengers in and out.

[lloyd fox]

AT least Virgin cares about Australia and Australian jobs.

Today's Courier Mail.

VIRGIN Australia is in talks with aviation unions to rescue the 1000 workers Qantas plans to sack.

Confidential correspondence reveals Virgin is also seeking to usurp Qantas's patriotic branding as the "Spirit of Australia".

Virgin Group executive Richard Tanner even said the airline was prepared to deal with its rival to take the workers off its hands.

"We are keen to ensure that as many as possible of the highly skilled staff being displaced by Qantas are provided the opportunity to be considered for suitable roles at our airline," Mr Tanner said.

"We are willing to liaise directly with Qantas and the aviation unions to help as many of the redundant Qantas staff as possible.

"Virgin Australia is committed to its Australian roots and to delivering the best travel experience in Australian skies."


Transport Workers Union national secretary Tony Sheldon said the Virgin offer proved that there was a strong future in Australia's aviation industry.

"Virgin is moving in the right direction," Mr Sheldon said.

"This is the challenge that Qantas has got: they're expanding the airline but getting rid of Australian jobs and that's a very fundamental mistake."

He claimed tens of thousands of workers could lose their jobs under outsourcing plans - 5000 over five years from Qantas and an estimated 6.5 flow-on jobs for each of those positions. Qantas has rejected the claims.

Australian International Pilots Association president Barry Jackson warned Qantas could lose its reputation as Australia's national carrier.

"Qantas has enjoyed an enormous natural advantage over Virgin when it comes to reputation and Australian identity," Captain Jackson said.

"Yet the way things are going under these two CEOs, things could turn around very, very quickly."

The Aviation Unions Federation of Australia said the move by Virgin proved an airline could be profitable with local staff.

"The AUF welcomes any expansion of Australian aviation companies, which sees Australian jobs, Australian conditions and Australian standards maintained and enhanced," he said.

[Jack B]

John Borghetti is a man of integrity, a huge loss for Qantas.

Whenever you fly on Virgin now there's a buzz amongst all the employees - it really is great at that place. Shame about the other side of the terminal..

[Andi O]

Just throwing it out there, but from what I see, most are assuming this "new" full service, unnamed, carrier based out of Asia will be something fresh and exciting. I don't think it has been said by QF that this is the case. I am reading it as they will set up an Asian based carrier to be the Qantas carrier through the region (read Jetconnect in NZ)
I see it being visually Qantas with Qantas service, but as is the case with Jetconnect, operated by a "subsidiary" working with different employment and operating conditions. I think it will operate services on behalf of QF out of Asia such as the current service bewteen Singapore and Adelaide, Perth, Brisbane, Mumbai etc and (hopefully) expand the flying options with Qantas out of and around Asia.
Time will tell I guess.....

[Ash W]

Andi, spot on, and by expanding those options it should generate employment in Australia too for Qantas employee's.

And Jack you make me laugh. Have a look at what Borghetti's role was with Qantas and how involved he was in setting up Jetstar etc. Believe me if he was running Qantas now he would be doing exactly the same kind of thing as Joyce.

[Dave Dale]

Ash, not so sure about your last premise, I heard John Borghetti in an interview in about May stating that he left Qantas because of the direction it was taking. There was a reason why Alan Joyce got the job and we all see it now. I believe it is the same reason why John Borghetti no longer wears his Qantas tie.

Dave

[Ash W]

He may well have left for that reason, however the fact remains he was on the board and was an active participant in the creation of Jetstar (which many opponents reckon was the death knell of Qantas) and as executive general manager of Qantas the direction it took until the time he left.

[BradR]

What is amazing in all of this is the marketing smarts of VA compared with the sheer incompetence of QF.

VA has sniffed the wind and know that the announcement about staff hiring is a winner with "Joe Public." Whether they hire all of the displaced staff probably doesn't matter they have won huge free marketing even down to a radio journalist saying on Fairfax Radio this morning that Virgin is becoming the new Spirit of Australia.

In the meantime QF has looked shifty, the announcement is not complete and they have the added misfortune of a CEO talking about how Australian the business is with a thick Irish accent. They have respected Australians on the Board like Peter Cosgrove. Having him sit beside AJ would have at least added some Australianness to a very foreign feeling announcement of "We are setting up a foreign airline in an unnamed foreign city staffed by foreigners whilst at the same time cutting back our traditional Australian services all in the name of growing an Australian business."

[A McLaughlin]

Ash - Borghetti was NOT on the Qantas Board, he was in senior management. Major difference.

[Andrew P]

Correct, senior management drives the company, the board just comes along for the ride