Qantas boss to outline big international shake-up

[Owen H]

Two quotes:

“The combination of our two domestic flying brands, Qantas and Jetstar, together with Jetstar International, Qantas Frequent Flyer and Qantas Freight, has enabled us to withstand a number of major events affecting our performance. On a combined basis, these businesses are profitable and are returning in excess of their cost of capital.

“In FY11, Qantas International is forecast to generate a loss before interest and tax of approximately $200 million, on invested capital of over $5 billion, with a weaker result expected next year"

Could someone please explain to me why all of the first named parts of the business are profitable on a COMBINED basis, and yet International is singled out?

International could have been combined in that first list, as, combined, they are all profitable!

So that begs the question - which of those first named areas - Q domestic, J domestic, J international, Freight and FF, are NOT profitable, and WHY is it that only Q International is being singled out? Could it actually be that one of the hallowed parts of the company, which is supposed to be the model of efficiency, is actually not making money?

[Montague S]

Originally Posted by Andrew

The Press Club speech can be viewed here.

I watch NPC often and I have never seen anyone receive applause during their speech, odd that Joyce was applauded when making certain remarks...or just fishy?

[Dave Dale]

Originally Posted by Montague S

I watch NPC often and I have never seen anyone receive applause during their speech, odd that Joyce was applauded when making certain remarks...or just fishy?

I thought something was up too, especially since he had some of his associates in the room. Perhaps they were on cue (or on:Q)...

[Matt_L]

A few points of interest I will refer to below.

Firstly a poignant quote from 2008 Alan Joyce said after becoming QF CEO 'the rumour going around is that we are going to try and make Qantas into a low cost carrier. That would absolutely be the wrong thing to do' The Australian newspaper . How times have changed!

Secondly, Joyce included Jetstar Asia I'n his list of successful arms of the company. Refer here http://m.smh.com.au/business/budget-...206-1aid3.html JQ Asia have Never made a substantial profit and indeed suffered more losses then profit I'n what is a cutthroat Market.

Thirdly, he alludes to the fact QF Intl cost base is so much higher then their competitors. Why's this? Crew pay makes up a very small proportion
Of this cost basis . Maybe poor management is at play given Cathay ek and most other major top airlines seem to have it sorted.

It shocks me he sees the Intl arm as such a risk with 3 billion I'n the bank. His fleeting reference to Ansett i found uncalled for and pretty inappropriate and the whole speech seemed like a justification for jetstar international to go fully global Ie pvg or other china base and reduction I'n Qf services (august 24 announcement )

[Montague S]

Originally Posted by Ash W

Please do tell what is significant about August 24, other than the fact that is the day of the Qantas announces their final year results. Though let me guess that was also the date Jetstar was first announced?

PS you, or any others for that matter have not actually said what they would do if they were Joyce to turn Qantas around, or are many in denial thinking $500m is a good profit and the company is running along fine and not in danger of total collapse?

google is your friend...try 1989 and pilots dispute.

the Co isn't running along fine, and the problem is the people running the company...this is the same CEO that jumps on a QF flight to an IATA meeting in Singapore and trashes the brand whilst giving his speech, then gets on a QF flight and heads back home.

not sure, but from where I sit he deliberately trashes the international arm at any chance he can get...and I suspect that he does it so that Australian's will feel less aggrieved when he finally starts dumping the international arm in some part of Asia.

[Andrew P]

Google takes me to this page

http://en.wikipedia.org/wiki/1989_Au...s'_dispute

cant see anything there about a date of the 28th

but what has that to do with QF,as Qantas was not part of the pilots strike (from memory)

ps don't forget under ASX rules QF must report its Preliminary final reports by 31 August each year

[Montague S]

^ try reading the dates correctly...but here you are.

http://www.vision.net.au/~apaterson/...m#APPENDIX%209

[Ash W]

Andrew it is all part of the conspiracy theory, which is just a smoke screen for not facing reality.

[Andrew P]

agree, the thought that someone in QF would set a results announcement date, which by the way is date that would have been pencilled in over 2 years ago, and locked in over a year ago, to coincide to an event back in 1989 is crazy

[Bernie P]

Perhaps, we will get a slow filter of information similar to that of DJ?

QANTAS Airways Ltd has announced a new domestic fare structure it says is simpler, more flexible and offers further frequent flyer benefits.
The main changes are a reduction in the previous four economy fare levels to three - Red eDeal, Flexi Saver and Fully Flexible - and better frequent flyer benefits for its cheaper fares.

The changes apply across the airline group's mainline and regional networks and come into effect for tickets booked from July 7.

Qantas said customer feedback helped shape the changes.

"Regardless of which fare type you book for Qantas domestic travel, we offer a meal or refreshment, inflight entertainment (except on QantasLink services) and a checked baggage allowance of one piece of luggage up to 23 kilograms," Qantas spokesman Rob Gurney said today.

Qantas says the new domestic fare levels are:

* Red eDeal - offering low year-round fares;

* Flexi Saver - offering a greater range of flexibility and choice;

* Fully Flexible - offering complete flexibility with full a refund option; and

* Business - full premium, with additional baggage allowances, Neil Perry designed menus, and dedicated lounges in Sydney, Brisbane, Melbourne and Canberra.

Qantas said enhancements had also been made to its frequent flyer program, which has 7.8 million members.

"From 7 July 2011, all Qantas domestic economy fares, now including Red eDeals, will be eligible for domestic flight upgrade awards to business using Qantas Frequent Flyer points, where available," Frequent Flyer chief executive Simon Hickey said.

"In addition, all flexible domestic fares will be classed as economy, resulting in improved status credit earn and upgrade rates for members on more fares."

Qantas yesterday said it expected full year earnings to rise to at least half a billion dollars on its profitable domestic business, while its international business is tipped to make a $200 million before-tax loss.

The Flying Kangaroo says it will achieve its best result since the global financial crisis on the strength of its domestic, freight, low-cost carrier Jetstar and frequent flyer businesses.

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