27th February Big Qantas announcement

[Welsh-Kiwi]

No mention of any new routes or route cuts though.

 

[THE TRIMMER]

Seems like Qantas has the same plan in place that Ansett had in place when it went under i.e paying for all of it,s hanger ons like air new Zealand, charging every thing to Ansett, like Deathstar is to Qantas.

 

[Jousams]

On the back of this report by Geoffrey Thomas in The West Australian: Qantas cuts to force fares up - The West Australian

This article pretty much says VA has won the capacity war. Interesting times ahead indeed...

 

[markis10]

No mention of any new routes or route cuts though.

There will be plenty of those, there is a reason why QF have retimed their SIN service closer to JQ.

 

[dmitri]

Now they are reporting that the Brisbane lease is for sale also, the snow ball effect begins.

 

[markis10]

Now they are reporting that the Brisbane lease is for sale also, the snow ball effect begins.

They have been reporting that all the leases were up for close to a year:

Qantas considers selling long-term terminal leases

It was a question from the floor at last years Macquarie investors briefing that first saw it newsworthy.

 

[maninblack]

The Hun is also saying JQ to slash jobs and routes or are they just referring to all the routes were planned but never happened!

 

[cmon0005]

Anyone else finding these news speculations depressing to read?
In past results there has always been bad news of sorts but it's been bearable as much as it can be, this time however it's just downright depressing...
I used to agree that unions had created the downfall of qf. But after seeing bad decision after bad decision I'm firmly of the opinion management have been the biggest wreckers of this one fine airline.

 

[markis10]

Anyone else finding these news speculations depressing to read?
In past results there has always been bad news of sorts but it's been bearable as much as it can be, this time however it's just downright depressing...
I used to agree that unions had created the downfall of qf. But after seeing bad decision after bad decision I'm firmly of the opinion management have been the biggest wreckers of this one fine airline.

Someone mentioned on pprune (grain of salt stuff) that grief counsellors have been hired and leave cancelled for QF security.

 

[markis10]

Qantas have released another response, "this page left intentionally blank" which is a term frequently used in Aviation might have been better:

There is fresh of speculation about what things we will or won’t announce on Thursday as part of our half year results. We are not in a position to comment on that speculation.

We have said that we will be making some tough decisions in order to achieve $2 billion in cost savings over the next three years, which is a consequence of an unprecedented set of market conditions now facing Qantas.


We've also said that we must take steps to reduce our costs regardless of whether the Federal Government acts on the uneven playing field in the Australian aviation market.

"unprecedented set of market conditions", didn't see VA coming, didn't see fuel price increasing, didn't see competitors replacing old aircraft with new ones 20-30% more efficient? Didn't see the need to keep $100 million cash rather than do a share buy back?

 

[cmon0005]

It also makes me wonder what the service will be like on qf127/128 in a months time when I fly, staff may well be demotivated and all this bad news might wipe all the customer service training from their memories.. Here's hoping not.

I've seen it happen before where companies have made massive cuts and the remaining staff are so over it and demotivated that it effects cust service.

 

[Mattg]

Especially when they have just announced tag flights SCL to RIO during the world cup.

They did? That's great news, from both a QF and customer perspective.

 

[Mr_Orange]

It also makes me wonder what the service will be like on qf127/128 in a months time when I fly, staff may well be demotivated and all this bad news might wipe all the customer service training from their memories.. Here's hoping not.

I've seen it happen before where companies have made massive cuts and the remaining staff are so over it and demotivated that it effects cust service.

Couldn't agree more. I have a few flights booked over the coming months, assuming they don't get cancelled anyway.

 

[Pushka]

Higher flight cost. Reduced staffing. Disenfranchised staff. Makes for a great flying experience, not!

 

[Ansett]

Was Just about to buy two J class LHR-MEL on QF but looks like back to SQ all this uncertainty and the after math of what is to come will not be good for consumers and customer service......

Voting with feet enough is enough

 

[cmon0005]

Maybe if the cuts are that bad, we should collectively (all of us as QFF WP & SG) approach CX with a proposition to match us all to CX Marco polo top-tier for at least 2 years and bulk purchasing discounts on flights for moving flights to CX..

 

[MEL_Traveller]

It also makes me wonder what the service will be like on qf127/128 in a months time when I fly, staff may well be demotivated and all this bad news might wipe all the customer service training from their memories.. Here's hoping not.

I've seen it happen before where companies have made massive cuts and the remaining staff are so over it and demotivated that it effects cust service.

well - you probably won't notice any difference. Some QF crews have been demotivated for a very very long time... if you accept that as an excuse for their inconsistent service. Heaven help us if the bad crews get any worse (which I don't actually think is possible).

The good crews should continue to be good.

let's hope the staff cuts include cutting some of the sour crews.

 

[amaroo]

ABC AM programme has broadcast that QF has confirmed no changes to DXB-LHR or JNB services....

AM - Qantas won't comment on job cut speculation 25/02/2014

 

[DaveB]

Having had some experience making change in a heavily unionised workforce, don't envy anyone trying to strip 20% of your cost base whilst still maintaining overall integrity of the business.
QF management has had some unbelievable luck over the past 15 years and has failed to capitalise and transform the airline.
One thing is for sure, there will be new management in place within 12 months time, hopefully with a lot of leadership skills to pick up the remaining pieces.
With the highest cost base regardless of the cuts made, trying to run a 3-4 star high cost airline with disenfranchised staff is only going in one direction.

 

[Fruitcake]

On the back of this report by Geoffrey Thomas in The West Australian: Qantas cuts to force fares up - The West Australian

That article speculates that the 767 fleet will be "grounded" immediately, which sounds like a severe exaggeration but even if only partly true it's more than a little ironic that VA effectively forced Qantas to drop money on the cabin refresh and now VA are forcing early withdrawal of the aircraft from service.