27th February Big Qantas announcement

[markis10]

They'll hammer staff, entitlements routes before they go anywhere near destroying QFF. QFF may well need to change however, IMO they will pull other levers to avoid tweaking with QFF.

Marginal ASAs are a good example of that not being the case, no business unit is safe when you need $3M a day in savings.

 

[Robbi]

QF should drop LHR, SA, and concentrate on the closer markets they can make money on.

North America
Asia
Dubai

They should do a deal with EK where QF is flying from all major AU ports to DXB, and that's it.

Beef up Asia dramatically, and improve North American links..

Compete with all the Asian carriers in Asia, the US carriers on US routes, and the oil rich arabs in the middle east routes? How is that profitable?

They might as well stay home and compete with VA...

 

[Cool Cat Phil]

Compete with all the Asian carriers in Asia, the US carriers on US routes, and the oil rich arabs in the middle east routes? How is that profitable?

They might as well stay home and compete with VA...

Well said!

 

[amaroo]

Marginal ASAs are a good example of that not being the case, no business unit is safe when you need $3M a day in savings.

Depends on your point of view. ASAs are not something I count as critical in keeping me with QFF....I hardly use them and don't really see the sense why they even offer them. I'd be happy for them to get the flick along with a few other easy status ventures.

I'm not wishing it to happen however, I'd be happy to see these things go before other QFF benefits.

 

[OzEire]

In the tradition that the Aus coat of arms is adorned with two quintessentially Aussie fauna chosen for their inability to take a backward step, AJ has decided to re-paint the red roo tail with the white silouette of another Aussie animal, the gum tree dwelling marsupial which- typical of the recent branding style- will be known as the Qoala logo (tm) (R).

Delighted at his latest innovation to enhance the brand, AJ is dismissive of any suggestions that the Qoala (tm) (R) might be misinterpreted as representative of a cuddly and much loved animal but ultimately one that sits in its lofty position high in the treetops, asleep most of the time, oblivious to the world around it, drunk on eucalyptus and very slow to react, even when mortal danger is approaching.

 

[BD1959]

Why on earth would they do that? oneworld brings them business (especially from north America, the UK and parts of Asia) - in fact, the two pillars of QF's passenger base are membership of oneworld and the alliance with EK.

Qantas won't be dropping anything that makes a profit or brings in a substantial amount of business. What needs to go are the things that lose money.

As JQ become the predominant part of the Group, an Airline Alliance does not fit the model of a quasi-LCC airline.

Besides, as QF have proved with EK - and AF before that - the advantages of an airline alliance can be effected courtesy largely of codeshares and airline-to-airline agreements. As I've opined before, as oneworld moves further from it's founding principles of being the alliance of premium airlines (what cost the integration with the likes of MH and UL compared with the benefits) that Alliance cost becomes the excuse to exit, together with an attitude that the EK/QF grouping (or rather what is left of QF) is a better product than the likes of UL, AB etc.

EK codesharing with JQ is the pointer!!

But .... no worry ... I can't predict Saturday's winning numbers, either!!

Regards,

BD

 

[dajop]

as oneworld moves further from it's founding principles of being the alliance of premium airlines (what cost the integration with the likes of MH and UL compared with the benefits)

Are you implying that MH is such a significantly inferior airline, compared to the likes of BA, IB & AA that it is dragging the standard of the alliance down?

 

[whatmeworry]

So has QF made more or less money by partnering with EK?

 

[BD1959]

Are you implying that MH is such a significantly inferior airline, compared to the likes of BA, IB & AA that it is dragging the standard of the alliance down?

Not quite. I'm suggesting that an airline with pretentious above it's station - one which might look to sponsor another for the benefit of a JV, but then dump same once that Proposed JV fails - may take that sort of view.

If you've read any of my posts here and elsewhere on MH, you'd know exactly where I rate their Product.

Regards,

BD

 

[amaroo]

So has QF made more or less money by partnering with EK?

.

Great Q!

Very much looks like LESS is the answer

 

[openseat]

Actually you could take that analogy even further that by asking for the Government Debt garantee - QF management are demanding that they can continue to invite 2 of their freinds for 1 of Virgins and if QF runs out of cake then they want the government - and by logical extension the australian taxpayer to bale them out and buy them another cake.

I also say yes to the removal of the QSA restrictions, but not for QF management and shareholders to be given licence to go broke and then expect the taxpayer to bale them out. Somewhere in here the shareholders have to make the board accountable so that they can make QF management accountable for the mess that they have put themselves in. And then find some people with some ideas about how to restore QF to profitability - if it is going to be the taxpayers whom do this then I say fine - just make sure that the current management are all completely gone....

I think Joe Hockey's reservations about this and his description of being "dragged kicking and screaming to the table" say plenty about his opinion of the matter and also speaks volumes about the competence of the current QF board and management.

It's called moral hazard.
If this proposed debt deal by the government comes into existence then it is nothing more than an excuse for Qantas to make even more disastrous and risky decisions. One might go on about banks and proxy IR wars as well, but that is off topic.

 

[Isochronous]

QF should drop LHR, SA, and concentrate on the closer markets they can make money on.

North America
Asia
Dubai

They should do a deal with EK where QF is flying from all major AU ports to DXB, and that's it.

Beef up Asia dramatically, and improve North American links..

JNB and SCL are monopolies that make money. They'd be the last on the chopping block.

QF don't have the aircraft to fly from PER and BNE to DXB as well.

Going to 777 for DFW would be a good idea though.

 

[amaroo]

It's called moral hazard.
If this proposed debt deal by the government comes into existence then it is nothing more than an excuse for Qantas to make even more disastrous and risky decisions. One might go on about banks and proxy IR wars as well, but that is off topic.

I think you're bang on with your last point.

 

[Awesom Andy]

If anything, I think OW membership can make Qantas loses money more quickly - at least, all high-status pax can try out different OW airlines, and if they like them, they can still use the OW benefits from QF while building up the status with the other airline.

 

[The Rok]

Why not just can all international flights then? In case you had forgotten, QF basically compete with more dominant carriers with lower cost bases on ALL routes out of Australia...

I actually don't see any need for QF to serve Asia or DXB at all, just when I say that people here jump up and down screaming about how QF is letting them down.

Yawn. QF international is a lame duck. It's a waste of time. Get rid of everything except for US where QF is actually a dominant force!

I personally won't pay 20% - 40% more to fly on QF out of Australia... Plenty of alternative carriers who do a much better job.

 

[JohnK]

So has QF made more or less money by partnering with EK?

At face value would appear less money.

 

[MEL_Traveller]

Why not just can all international flights then? In case you had forgotten, QF basically compete with more dominant carriers with lower cost bases on ALL routes out of Australia...

I actually don't see any need for QF to serve Asia or DXB at all, just when I say that people here jump up and down screaming about how QF is letting them down.

Yawn. QF international is a lame duck. It's a waste of time. Get rid of everything except for US where QF is actually a dominant force!

I personally won't pay 20% - 40% more to fly on QF out of Australia... Plenty of alternative carriers who do a much better job.

I disagree with your first statement - that QF competes with airlines with lower costs.

Ex Australia all airlines will (should) be paying the same for basic services... fuel, food, drinks, lounge access costs, airport costs etc.

Ex foreign ports QF should be negotiating rates on all of the above that are competitive.

Cabin crew - yes foreign carriers might be cheaper, but we have already established some (all?) foreign airlines carry significantly more crew than QF aircraft. EK has 31 on an a380, QF has 21. EK is also paying for 31 hotel rooms here. And it was mentioned that foreign airlines may have longer stopover times. So cabin crew cost might be marginal at best (on a total plane per plane basis).

Combined with that, QF also offers a premium first class cabin. On a flight SYD-HKG CX doesn't have the luxury of selling 15 first class seats for $8000 each. The most it can get is the $5000 or so for business class.

 

[hutch]

Why not just can all international flights then? In case you had forgotten, QF basically compete with more dominant carriers with lower cost bases on ALL routes out of Australia...

I actually don't see any need for QF to serve Asia or DXB at all, just when I say that people here jump up and down screaming about how QF is letting them down.

Yawn. QF international is a lame duck. It's a waste of time. Get rid of everything except for US where QF is actually a dominant force!

I personally won't pay 20% - 40% more to fly on QF out of Australia... Plenty of alternative carriers who do a much better job.

It is unlikely QF would remain the dominant carrier on the AUS-USA routes if that was the only international flying they did. They probably would lose a bundle of corporate accounts (or their value would be reduced) and their frequent flyer base would be heading south.

 

[maninblack]

I think the announcement will contain some bad numbers and big changes. In the current era QF cannot be all things to all men. Airlines like AA and UA try but struggle and they have a parochial consumer base of 300 million people to draw upon and don't suffer with the tyranny of distance and a totally overwhelming competitive force in the shape of Asian and ME airlines.

Giving this more thought I think QF is going to have to do something with those A380's that they are stuck with. So I think you will se an invigorated focus on the domestic market and a few regionals, US and LHR markets to stay a major focus. big news might be the total dumping of Asia, some to JQ and some gone.

 

[desiredusername]

I haven't flow Qantas since around the time in Apr 2008 when they stopped accepting Amex points to do their own thing.

Just send in the forensic auditors and follow the money.