Qantas Group Strategy Update and Financial Result

[Stuart Trevena]

Hi All,

Montague, you always seem to read part of my posts.

In Reference to your Item 2 - I was talking about B747-400 Fleet "One big mistake that the Board of Qantas made years ago, was to not order the B777-300ER or -200LR series aircraft, as a replacement 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."

In no-way did I mention the A380, which is economical.

And it is obvious that someone has cut and paste my original post to suit themselves, as items are missing and clearly not in order, that I originally posted them.

If anyone wants to use my posts, for quoting me, don't change anything, otherwise you are changing what I said for your own gain.

As for item 6) Since EK basicly Forced QF to change Hubs so that passengers to Europe would transfer to EK Aircraft, there should have been a give and take on the table. EK should have given up the 404/405 Service, and allowed QF to operate that route. A330 Service would work and more than likely be at least 75-80% full at a guess.

Item 7 - Ok Rome not a good idea, but its got people thinking - Maybe AMS is better... Don't know. Was floating ideas to promote discussion.

I still like this one - Return of Perth to Singapore and Extend to Hong Kong or Japan. Someone did suggest PER-HKG-Japan.

Stuart

[Joe Frampton]

Every time I read or hear about Qantas I get angry about the incompetent fool Joyce and how he is possibly still at the helm. The losses get bigger, things get worse, but oh no 'we can't change the leader while the job is half done' Exactly what job is that - the demise of Qantas? I have no idea what forces are at play here in seeing a long standing international airline/brand pushed in to a nosedive from which they will never recover. Sack this guy and get some new blood. And while we're at it, maybe it's time to have a rethink on domestic fares. If both Qantas and Virgin are losing buckets of money, then it's time to raise fares to a level where things might be sustainable. It doesn't mean it's collusion, it just means that airlines can put bums on seats at a price at which they WON'T go bust. We are all paying ourselves way, way too much in Australia right now. Time for the price of airline seats to go up accordingly. Or maybe that will just happen anyway when one of these airlines does actually go bust. We can't just go on with our head in the sand. End of my rant.

[Ash W]

Originally Posted by Stuart Trevena

If anyone wants to use my posts, for quoting me, don't change anything, otherwise you are changing what I said for your own gain.

I feel you are referring to me, in which case it was obvious because A) the quote wasn't 1000 lines long unlike the original post and b) I said in my opening line I left out a lot.

Then just like now I cut out parts I was not replying to and only left what I was replying too to make it clear what my post was addressing l, it was not as you suggest to suit my argument. Now if you don't like that then either make smaller posts where people can reply where it is clear as to what they are replying to or go build a big bridge and get over it.

[Ash W]

Originally Posted by Stuart Trevena

Hi All,

Montague, you always seem to read part of my posts.

In Reference to your Item 2 - I was talking about B747-400 Fleet "One big mistake that the Board of Qantas made years ago, was to not order the B777-300ER or -200LR series aircraft, as a replacement 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."

In no-way did I mention the A380, which is economical.t

Anyone else confused by the above? 777 good because two engines, 747 bad because 4 engines require more maintenance but A380 is economical? But has 4 engines!

But in seriousness at the time the A380 order made sense. Where Qantas flew the 747 to loads were good and growing.

Then along comes the double whammy of late A380 deliveries and the rise of the middle East airlines and boom a cut to the traffic to the West and aircraft too big.

As mentioned isn't hindsight sitting here 10+ years later wonderful?

[Montague S]

Originally Posted by Stuart Trevena

Hi All,

Montague, you always seem to read part of my posts.

In Reference to your Item 2 - I was talking about B747-400 Fleet "One big mistake that the Board of Qantas made years ago, was to not order the B777-300ER or -200LR series aircraft, as a replacement 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."

In no-way did I mention the A380, which is economical.

And it is obvious that someone has cut and paste my original post to suit themselves, as items are missing and clearly not in order, that I originally posted them.

If anyone wants to use my posts, for quoting me, don't change anything, otherwise you are changing what I said for your own gain.

As for item 6) Since EK basicly Forced QF to change Hubs so that passengers to Europe would transfer to EK Aircraft, there should have been a give and take on the table. EK should have given up the 404/405 Service, and allowed QF to operate that route. A330 Service would work and more than likely be at least 75-80% full at a guess.

Item 7 - Ok Rome not a good idea, but its got people thinking - Maybe AMS is better... Don't know. Was floating ideas to promote discussion.

I still like this one - Return of Perth to Singapore and Extend to Hong Kong or Japan. Someone did suggest PER-HKG-Japan.

Stuart

Stuart, seriously...I only responded to what I felt was worthy of a response, hence the way I formatted my post. I read all of your post.

I don't need to sit here and write a response to everything you've written...

I know you didn't mention the A380...that's why I did.

now take a look at what I've responded to, and see how ridiculous it looks.

[Stephen Brown]

Originally Posted by Joe Frampton

Every time I read or hear about Qantas I get angry about the incompetent fool Joyce and how he is possibly still at the helm. The losses get bigger, things get worse, but oh no 'we can't change the leader while the job is half done' Exactly what job is that - the demise of Qantas? I have no idea what forces are at play here in seeing a long standing international airline/brand pushed in to a nosedive from which they will never recover. Sack this guy and get some new blood. And while we're at it, maybe it's time to have a rethink on domestic fares. If both Qantas and Virgin are losing buckets of money, then it's time to raise fares to a level where things might be sustainable. It doesn't mean it's collusion, it just means that airlines can put bums on seats at a price at which they WON'T go bust. We are all paying ourselves way, way too much in Australia right now. Time for the price of airline seats to go up accordingly. Or maybe that will just happen anyway when one of these airlines does actually go bust. We can't just go on with our head in the sand. End of my rant.

Exactly why I think that Joyce is doing exactly what his job decryption is....Destroy Qantas....Transfer it all to Jetstar......Devalue the brand.....

[Ray P.]

I think it's interesting that Virgin Australia releases pretty poor results for FY2014 and no one seems to bat an eyelid. From what I understand (and as has already been raised in this forum), the Qantas results were actually pretty good compared with the expected figures, noting that the vast majority of the losses were 'paper' losses from aircraft write-downs.

[Brad Myer]

The issue for VA is for the year ending both yields and loads were up but they still couldn't make a profit.

QF domestic on the other hand suffered a massive drop in yields as well as loads and still managed a $30mil profit.

Interesting year ahead.

[Dave J]

Don't be fooled Brad. All of a sudden Jetstar lost over $100mil! Some clever accounting has taken place at QF for a number of years since the likes of Jetstar came about. This year QF needed to paint a very bleak picture for the whole group to justify the mass (5000+) staff from losing their jobs.

[Ricky T]

I don't see how 'cleaver accounting' has favoured JQ vis a vis QF. There are accounting standards that needs to be followed so its not management can just 'shift' JQ's costs to QF.

As for the need to 'paint a very bleak picture', their international fleet has been overvalued for accounting purposes for a long time so its reasonable to write them down to their fair value.

The 5000+ job loss that you mentioned has been going on for little while and to date, 2500 positions have been made redundant, so there are over half way there.