27th February Big Qantas announcement

[Flying Fox]

News Corp have upped the ante -

Qantas won't confirm job losses

- loss of 5000 jobs
- selling of the lease on BNE airport
- selling of the lease on MEL airport

The 27th will be an interesting/sad day.

 

[smit0847]

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

Incorrect - the text says they won't be dropping DXB-LHR, not that there will be no changes to the route.

Few people seriously expect QF to drop their flagship route - the speculation is that QF9 will terminate at DXB instead of LHR meaning the frequency of DXB-LHR will reduce from 2 daily to 1 daily (QF1 to remain).

 

[smit0847]

I wonder what kind of champagne JB will be enjoying as he kicks back and listens to the announcement on Thursday?

 

[Brettmcg]

I wonder what kind of champagne JB will be enjoying as he kicks back and listens to the announcement on Thursday?

Not sure JB can afford champagne with VA's results due for announcement on Friday. Word on the street is that VA is in for some serious pain also.

 

[markis10]

Not sure JB can afford champagne with VA's results due for announcement on Friday. Word on the street is that VA is in for some serious pain also.

Word on the street? They recently indicated a loss of $49M was the figure they expect to be in line with.

 

[MH_fan]

Well, the big tie-up with EK has clearly helped... I wonder if that little arrangement has been a significant contributor to the latest QF financial results...

 

[amaroo]

I wonder what kind of champagne JB will be enjoying as he kicks back and listens to the announcement on Thursday?

Can't see a celebration over in the VA camp. Government guarantee will probably make the foreign paymasters take another look at their strategy.

 

[smit0847]

Can't see a celebration over in the VA camp. Government guarantee will probably make the foreign paymasters take another look at their strategy.

If QF retire their 767s immediately doesnt this mean VA has won the strategy war?

Despite not making a profit, VA has the luxury of having extremely wealthy investors that will keep pumping money into the business.

 

[Simo]

What ever VA's result is QF's will be worse.

 

[Fruitcake]

Perhaps the comparison should be with VA 777 captains. Anyone know what they can earn?

The full VA long haul pilot EBA is here:
http://www.fwc.gov.au/documents/agreements/fwa/AE888329.pdf

Very few of us will be able to figure out what a representative take home pay packet looks like, but the base for a Captain ranges from $217k to $286k.


For reference, the short haul EBA is here:
http://www.fwc.gov.au/documents/agreements/fwa/AE401020.pdf

 

[markis10]

If QF retire their 767s immediately doesnt this mean VA has won the strategy war?

Despite not making a profit, VA has the luxury of having extremely wealthy investors that will keep pumping money into the business.

VA has the luxury of having made a profit recently and being on a strategy that doesn't change with the wind.

 

[Simo]

If QF retire their 767s immediately doesnt this mean VA has won the strategy war?

Despite not making a profit, VA has the luxury of having extremely wealthy investors that will keep pumping money into the business.

You do have to wonder when will the VA investors will say enough is enough

 

[Simo]

Will Red Roo's job be safe?

 

[markis10]

Will Red Roo's job be safe?

Depends if QF Loyalty gets sold to WOW.

 

[amaroo]

Despite not making a profit, VA has the luxury of having extremely wealthy investors that will keep pumping money into the business.

This is the very reason the Government needs, should and hopefully will provide assistance to Qantas. Once the Gov assistance package is in place it will be interesting to see how it all plays out.

 

[moa999]

VA has the luxury of having made a profit recently and being on a strategy that doesn't change with the wind.

You mean this profit:
Virgin Australia records $98.1m loss

Which is forecast to stay the same direction for the half:
Virgin Australia on track for $49m loss

 

[Brettmcg]

Word on the street? They recently indicated a loss of $49M was the figure they expect to be in line with.

Just like the QF figure has shifted backwards and forwards over recent months? At one stage one analyst was predicting a $600m loss to be announced at the HY results.

I wouldn't take what either have provided as "guidance" to be absolutely gospel.

 

[markis10]

You mean this profit:
Virgin Australia records $98.1m loss

Which is forecast to stay the same direction for the half:
Virgin Australia on track for $49m loss

I did say a recent profit :?: - as in the last 18 months

Virgin Australia Holdings Limited (ASX: VAH) reports Financial Results for Half Year Ended 31 December 2012 | Virgin Australia

 

[Intra]

You do have to wonder when will the VA investors will say enough is enough

I think their in it for the long haul - They might be doing it tough, but it's if it isn't the competition is doing any better

QF is going to the coffers Wonder what will remain next week and in the coming months besides QFd & the Orange Cancer....

 

[Brettmcg]

What ever VA's result is QF's will be worse.

The Qantas Group is also about four times the size of Virgin Australia so of course in the current environment that is to be expected.