Is Alan Joyce doing a good job?

[winfred]

For the past few days, the hottest topic must be Qantas and Alan Joyce. The debate (or shouting match) between Jeff and Mark on Sunrise this morning is one of the most entertaining one.

There are bits and pieces of opinions on this topic expressed by members here in different threads but I think it is a good idea to start one dedicated to this topic.

What do you think about Alan Joyce and his performance as the CEO of Qantas for the past 5 years? Are you in Mark Latham's camp or are you with Jeff?

Do you think Qantas has a future as a premium domestic and international carrier?

What would be your turnaround strategy if you were appointed CEO of Qantas?

 

[casanovawa]

I've been a pretty hard critic of QF and Joyce of late, especially the screwing of loyal WA QF members (and those from Adelaide have also been shown no love.) But when you read about some of the issues confronting Qantas from unions, to foreign and domestic competition etc, you do get a picture that some of the challenges are quite daunting...

So while not all Joyce's and the board's fault, I still can't stop holding them accountable for many poor decisions and just a lack of leadership, staff motivation, realistic short and long term planning etc... Not sure if there is any real strategic plan to get QF growing again or it will just be death by a thousand cuts... Apart from a few high falutin thought bubbles about Jetstar in Asia and Red Q I don't see any dramatic inspired ideas about what to do and where to go and how to take the fight to the competition instead of just surrendering routes.... He has been there 5 years which is not a short time, I get no sense of the board being that competent to otherwise count up the losses either... You can't keep blaming fuel prices (that everyone else pays) and everyone else but yourself, if fuel is so bad think of something innovative, can you go buy an old well or something somewhere who knows...

And I don't like how opaque the management and operational structure is at QF and J* while they keep hinting at wanting govt hand outs, I;d like someone to take a good hard look at it and see if any cost shifting or shady stuff is being done to make QF Int look worse than it is...

 

[winfred]

It may help if I list the reasons given by Alan Joyce for the poor performances of QF and critic's accusations. Please feel free to add to the list:

Reasons for Qantas's poor performance:

- High fuel prices
- QSA restricts competitiveness of QF
- High employment costs
- intense competitions from large government backed airlines.

Reason why AJ (and the board) should be sacked:

- they should anticipate and hedge against fuel price increases as fuel prices has been going up for many many years.
- QF's obsession to fight for domestic market share.
- Poor aircraft choices
- inability to deal with union effectively.

 

[serfty]

...
- Poor aircraft choices
- inability to deal with union effectively.

Wouldn't ping those two fully on AJ ...

 

[winfred]

Wouldn't ping those two fully on AJ ...

May be the first one as some were decided before his time but the union thing?

The chaos of grounding the whole fleet a few year ago is still fresh on my mind. Yes I don't like unions and I think they are bad but the prerequisite of a good CEO in a large organisation in Australia is the ability to deal with them effectively.

 

[serfty]

May be the first one as some were decided before his time but the union thing?

The chaos of grounding the whole fleet a few year ago is still fresh on my mind. Yes I don't like unions and I think they are bad but the prerequisite of a good CEO in a large organisation in Australia is the ability to deal with them effectively.

... I thought it was very effective ...


This may be behind a pay-wall: The cuts Qantas had to have | Herald Sun

QANTAS is quite simply doing what it has to do.

Calls to sack the CEO Alan Joyce and the board of directors are just ridiculous and identify the callers as either very stupid or very agenda-driven and in most cases, both.

These people like the odd couple of Senators Nick Xenophon and Doug Cameron should explain how it could be done differently, far less better.

Perhaps Qantas should go on a spending spree and lose even more money?

Perhaps Qantas should close down even more of its business and sack even more of its staff?

Perhaps they can then follow through with their plan to save the Australian car industry. Who needs a CEO and board of directors when you can get Xenophon and Cameron — perhaps even both at the same time — gratis.

The key point about yesterday’s announcement, that got lost in the inevitable frenzy, is that the tough decisions taken by Qantas are quite independent of anything that government might do. ...

 

[winfred]

... I thought it was very effective ...

I would probably do something more dramatic

Terry McCrane's article is a good one. Most of the people accusing AJ for doing a poor job are accusing him for the wrong things. I also agree that unlike SPC or the motor industry, QF's ability to compete effectively against the likes of Virgin and other international airlines is restricted by the QSA. If the QSA is to stay the way it is, it is only fair that QF get some help from the government to level the playing field.

But I have not seen any in-depth analysis of why Qantas is in such a mess. Is it competitions from Virgin eating into its profitable domestic business? Is it international competitors making it hard for them to compete? Is it the fuel prices? Is it their high overheads due to the QSA? Is it their obsession with maintaining domestic market share resulting in empty seats and price wars?

 

[amaroo]

May be the first one as some were decided before his time but the union thing?

The chaos of grounding the whole fleet a few year ago is still fresh on my mind. Yes I don't like unions and I think they are bad but the prerequisite of a good CEO in a large organisation in Australia is the ability to deal with them effectively.

I'm another that supports this action. It was a courageous and correct call IMHO.

 

[here2go]

I am wondering if we will see a Canadian Airlines / Air Canada style amalgamation. I can see Qantas collapsing, Virgin through outside support pulling through, and taking over,the Qantas brand. Meanwhile JQ and maybe Tiger are separated and consolidated into a LCC correlating to Westjet.

The parallels between our markets are similar. What are your thoughts?

 

[amaroo]

I am wondering if we will see a Canadian Airlines / Air Canada style amalgamation. I can see Qantas collapsing, Virgin through outside support pulling through, and taking over,the Qantas brand. Meanwhile JQ and maybe Tiger are separated and consolidated into a LCC correlating to Westjet.

The parallels between our markets are similar. What are your thoughts?

Can't see that ever occurring when three foreign countries basically owning VA. QF won't go under.....it would be re-nationalised well before it gets anywhere near failing. Just like Air New Zealand was in 2001 and is still 53% owned by the NZ Gov today.

 

[mannej]

I am wondering if we will see a Canadian Airlines / Air Canada style amalgamation. I can see Qantas collapsing, Virgin through outside support pulling through, and taking over,the Qantas brand. Meanwhile JQ and maybe Tiger are separated and consolidated into a LCC correlating to Westjet.

The parallels between our markets are similar. What are your thoughts?

You have more chance of pigs flying.

 

[browski]

If you are the CEOs of VA/SQ/EY/NZ........ AJ is doing a good job
If you are Jeff Kennett....... AJ is doing a good job.
If you are AJ....... AJ is doing a good job.
If you are a Jetstar Japan employee........ AJ is doing a good job

If you are a QAN shareholder....... AJ is not doing a good job.
If you are a Qantas employee.......... AJ is not doing a good job.
If you are a Perth resident........... AJ is not doing a good job.
If you are an Adelaide resident........... AJ is not doing a good job.

 

[Paddy55]

If you are the CEOs of VA/SQ/EY/NZ........ AJ is doing a good job

Dateline 1st Mar 2020:

AJ was finally revealed as a double agent, recruited from Ansett by Richard Branson to work in JQ & QF to "create mayhem" it was revealed today.
Last year's retrenchment of the final 5000 QF jobs, including subsequent outsourcing of operations to The Reject Shop, despite being supported by the QF Board....

 

[here2go]

You have more chance of pigs flying.

They did until the RAAF retired the F111 fleet

Seriously though, a formerly government owned airline amalgamating and taking over an airline that was never state-owned (noting that the airlines that own Virgin have large government stakes). The Canadian example is a precedent, and their market is similar to Australia by virtue of distance, population, and proximity of foreign carriers (ie the States). I think to suggest that this is an unrealistic scenario suggests that Qantas and Virgin can't get any worse.

I hate been flying a lot DRW-SYD, and I can tell you that the planes are awesome - I have been able to stretch out and sleep on 3 seats for $220 on Virgin and Qantas. Great for me, but unsustainable. While this will ease in the dry season, something will have to give.

 

[777]

No.

<waste of space>

 

[amaroo]

If you are the CEOs of NZ........ AJ is doing a good job

LOL didn't this airline need to be saved from administration? Still majority owned by the NZ Gov 12 years later....

 

[amaroo]

You have more chance of pigs flying.

JB looks like a pig with lipstick complaining about Gov assistance...

 

[777]

LOL didn't this airline need to be saved from administration? Still majority owned by the NZ Gov 12 years later....

And making handy profits these days.

Wasn't qantas a world leading airline with an invest grade rating handed a near monopoly in the domestic market at the same time. Compare what has happened since and ask which has had the better management? Answer should be obvious.

 

[amaroo]

And making handy profits these days.

Wasn't qantas a world leading airline with an invest grade rating handed a near monopoly in the domestic market at the same time. Compare what has happened since and ask which has had the better management? Answer should be obvious.

LOL why do you think JB is staining his pants every time he reads about Gov assistance?

 

[777]

LOL why do you think JB is staining his pants every time he reads about Gov assistance?

Because everything he has tried has been an expensive failure?