Qantas Group Strategy Update and Financial Result

[Rowan McKeever]

Originally Posted by Stuart Trevena

Hi All,

I had to bring up this thread again, as I think is worth it.

This Article appeared in the Melbourne Heald Sun Recently.

Titled "Qantas needs to cut 2000 more jobs to turn its fortunes around, analyst claims"

Here is the link

http://www.heraldsun.com.au/travel/t...-1227037649654

What are peoples thoughts? Is the reporter Right??

No doubt my comments will be shouted down or tagged silly, but he is my 2 cents worth........

Hey Stuart

I just want to discuss a couple of your points, but understand I'm not bashing or tagging as silly... just my 2c.

I disagree with you about the 777 to an extent. Where I agree with you is that it's an amazing aircraft with a huge amount to offer an airline like QF. Where I disagree is that, in the current regulatory environment, QF isn't in a position to use what the 777 has to offer. EDTO restrictions for Australian operators are very tight and preclude the use of twins to South America, South Africa and much of the USA (DFW, for example, would not be possible for a QF 777). These restrictions have always been in place and are unchanged from the time QF was involved in the development of the 777, and CASA has made it clear the restrictions are unlikely to change in the foreseeable future. People will arc up over that, as they do, but CASA's position is based on the ability to reach a crash site on those routes which they estimate would take the better part of a week. I'm as big an advocate for the 777 as anyone and, in a different environment I would agree with you 110%, but not in this environment.

I also agree with the comment that their eggs are not all in one basket, as they have the A330s (two subtypes), B744s and A380s. They also have some options with 73H.

Some of your route suggestions are interesting too! PER-HNL would bleed, they'd be better off doing ADL-HNL as at least that would be a new connecting option for WA customers. But in any case they're best placed to leave HNL as is - anything else isn't worth the investment in equipment, crew, etc. Similarly with routing to FL via HI or SFO - that's what DFW is for.

The return of PER-SIN is rumoured and the tip is 73H operating multiple rotations. Which is kind of clever if that's the path the choose. PER-SIN-NRT is a long detour, but PER-HKG-NRT could work. Maybe 3-4 per week with A330s?

Again, I'm all for doing something more with Europe (not sure about Rome specifically, but Europe in general). They have some very capable A332s (also, hello 777! )which they could put to use on routes to connect with their oneworld partners through Germany, Spain and Finland. And they could route through Sri Lanka to meet up with their other partner their. The trouble is, and someone please correct me if I'm wrong, the EK agreement requires that all QF European services must route through DXB? In which case, how do they compete (maybe PER-DXB-HEL which EK doesn't have)?

QF do receive money from their customers who book onto the EK codeshares - probably not as much as they would if it was their own flying, but then they don't have all the costs of doing the flying (nor the overheads).

Just finally, on the product. I agree with you that the product and service isn't what it once was. But it's also, in my opinion, one of QF's main selling points over VA which has the most inconsistent product I could imagine. At least with QF (in domestic terms) I know that their name on the side of the aircraft means I get the same service whether I'm flying CBR-SYD or SYD-DRW. With VA, not so much!

Anyway, like I said just my 2c as part of the discussion. Thanks for opening it up Stuart!

Cheers
Rowan

[Justin L]

Interesting post Rowan.

Just curious, but how were VA able to overcome CASA's restrictions for twin engine jets on their flights to LAX and their old flights to JNB? Were they not considered an Australian operator?

[Rowan McKeever]

Hey Justin

LAX is within the restrictions and they added track miles to the JNB flights in order to meet the restrictions as well (one of the reasons the flights weren't economical).

Cheers
Rowan

[Justin L]

Interesting. Thanks Rowan.

[Stuart Trevena]

Hi All,

Rowan - Thank for your comments, as that was the reason for opening this back up.
Not to be blasted by somone, for saying my ideas were silly.

Sometimes the best ideas (this has been know to be true) come from those who are far removed from the boardroom, that a seed of a thought could actually turn into something later on.

I will have more to say later

Stuart

[James S.]

Sorry, but being asked to back up your statements with some verifiable fact rather than simply being hearsay is not getting 'blasted'. It's a significant part of discussing a topic, you need to understand that. No need to be defensive.

[Martin Buzzell]

I read somewhere that Heathrow's "Slots" are full, so wouldn't it be better to use a bigger aircraft such as the A380 instead of the Triple 7 to get more pax in with your slot?

Maybe that's why QF went with the 380, like other carriers did too.

[Daniel M]

Originally Posted by Stuart Trevena

Hi All,

Daniel M - I did say these were my thoughts, and as such I didn't imply or state research had been done on my suggestions. They are exactly that - Suggestions!!!

Can't someone float ideas on this forum without having to spend countless hours doing research and References just to suit a petty person like you!!!

If your soo great, Where is your Fantastic idea and Suggestions, with fully costed businiess plan???? I want to see it in a few hours!!

Stuart

omg, like I didn't ever say I was like, sooo great. All I asked was for some supporting reference to your suggestions (which are mostly ridiculous, as I mentioned ... but that's just my thoughts ... this is a free forum, I'm allowed to have my own thoughts remember)

[Ash W]

Originally Posted by Michael Morrison

So they are having a go that "The Australian domestic market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign government-backed airlines"

My understanding is that a 100% foreign owned airline has been allowed to fly domestic only for more than the last 10 years... hence how DJ started in the first place.


I think the biggest issue here is not around ownership, but more around Joyce's poor management - and the fact he can continue to drive the business into the ground without any re-course.

Whilst what you say re ownership is correct it doesn't apply to Qantas who are restricted by the Qantas sale act, even after the recent/planned changed to the act. So he does rightly or wrongly have a valid point.

[Montague S]

Originally Posted by Stuart Trevena

Hi All,


What are peoples thoughts? Is the reporter Right??

No doubt my comments will be shouted down or tagged silly, but he is my 2 cents worth.

One big mistake that the Board of Qantas made years ago, was to not order the B777-300ER or -200LR series aircraft, as a replcement for the ageing B747-400 Fleet. While I do like the Queen of th Skies, she has 4 Engines, which guzzle fuel and the extra Maint. cost or 4 engines is expensive.


Perth - Auckland, Perth - Hong Kong or even Perth to Honolulu, or again East-West Coast Flights.

New Routes QF should look at with the Right Aircraft include:

Perth - Honolulu


Return to the Kanagroo Route via Singapore (Link via Capital Cities)

Take over Emirates Flight EK404/405 Melbourne to Dubai via Singapore

Return of Rome Services via Singapore.(Link via Capital Cities)

Return of Perth to Singapore and Extend to Hong Kong or Japan

Operate QF63/64 Sydney to Johannesburg via Melbourne


Under him, the Qantas Product, Services and Share Price have all nosed dived. If this was any other business, he would have been sacked years ago, for gross incompentance. Under Joyce, QF has bleed money Left, Right and down the Middle.

The only way forward is too sack the Board and Elect a New Board that will review the routes, and Aircraft type required, and deal with the Various Unions and EBA's once and for all.

Only then will Qantas return to Profit, which into will increase the share price for shareholders and gain back the travelling Australians Trust.


Stuart

1) it's the Herald Sun, do you really believe what they write?

2) ever heard of the A380? that has 4 engines and is pretty economical to run. Technology evolves, regardless of there being 2 or 4 engines.

3) PER-AKL-PER is seasonal...

4) PER-HNL...right, who do you envisage flying this route?

5) why would QF63/64 go via MEL when the two biggest South African populations are in Perth & Sydney???

6) take over EK via SIN, that was the very first flight EK operated to Australia, do you really think they'd give it up?

7) Rome, what for? it's expensive enough as it is, and hardly worth the trouble. AMS would be far more attractive.

8) we all know the board has to go...but who replaces them?