27th February Big Qantas announcement

[QF WP]

First question from "Ross": "Has there been any discussion with the board about your own position?"

Great question.

Joyce: "I'm absolutely committed to QF . . ."

To be honest, he won't be involved in any discussions about his tenure...he'll get a phone call from the Chairman to pop into their office.

 

[Ansett]

First of all

It is a very sad day for so many people at Qantas and lets not forget family and frien ds and all the other companies that will also be impacted by this. My thoughts are primarily with them.

Secondly from a selfish perspective what will be the impact on QF9/10 and the connection using QF1/2 for the extra transit time and ofcourse for the additional status credits?

I cant see how QF can make too many more changes to catering given that QF catering have only done domestic meals and this has been so for some time with QFi meals being prepared over seas from what I hear and being carried back and forth as needed.

The loss of Perth as an international QF port is a sad sad day as many have also commented and I believe will equate to a drop off of premium passengers flying QFd and QFi from Perth.

I for one fail to see why a LCC like Jetstar should get all the new aircraft why not give them to QF so that they can lower their cost base?

Bring forward the refreshment of the A330 as I for one would now look at alternatives for J travel to Asia is needed.

All the talk from Lesley in her email to members is nice however they have been talking for a number of years of improvements and giving better service. Has they delivered on this and had decent flights from ports other than but also including East Coast then todays announcements IMO may not have needed to have been so severe.

At the moment the board cant get the mix right here in Australia, they have failed to deliver the promised savings and revenue increases over the last few years. They seem hell bent to continue with an offshoot called Jetstar Asia. I would respectfully suggest that the board pulls its head in and puts its efforts back into returning QF to a profitable airline as it always was and forget the stupidity that is Jetstar Asia.

Ok that is my five cents worth.

Again my thoughts are with all those that will now lose their jobs. Wishing you all well and hope that the future pans out for you

 

[trippin_the_rift]

I agree it's good QF is taking steps to remove unprofitable people and routes from the business.
Sure they're an Australian airline but first and foremost they are a for-profit company.

My observations:

- Looking at availability for QF/EK SYD-DXB every month for the next 6 months - EK has much higher loads on all dates. Some are sold out where QF has 9+ economy available. Similar story for MEL and BNE. QF codeshares on EK have higher loads. (What this tells me is that passengers are trying EK - realising it's better than QF and telling their friends/family to go with EK. This also explains why QF codeshares are booked out. Some folks are happy to pay the higher price for QFF benefits but prefer the superior EK aircraft.)
- Same periods, generally QF has lower DXB-LHR-DXB loads than EK ... and EK has more flights than QF to boot.

- Just about every major competitor in the region is profitable (NZ,SQ,CX,FJ,GA).. even north american airlines are massively profitable now with $billion profits. Looking at intl departure numbers - less people are choosing to fly Qantas.

- QFF has a very small membership based compared to other legacy carriers by focusing only on AU. Other FFPs are also more profitable overall than QFF.

- Pulling SIN from Perth is interesting. This will surely alienate more status frequent flyers who fly that route. Suddenly with the loss of SIN it may make more sense for these high-rev passengers to fly with another airline or alliance. The overall cost to the business for pulling out of SIN is likely to be much higher than the actual flight expenses alone.

I think it's about time QF/QFF invested in some smarts to learn what drives their passengers to fly with them and not the competition. To determine what drives customers to spend more on an emotional level and not just look at transactional data. For example I'm happy to pay $400 one-way BNE-SYD in Business; but if the price isn't available then it's back to a $79 red-e-deal for me. Everyone has their own internal measurements and armed with this knowledge QF (or VA...or any airline reading this) could quickly figure out a way to double or triple flight revenue (*disclaimer: my new business helps FFPs do this).

Focus groups/surveys are just hurting their feedback and decision making IMO. You can't trust customers to tell you what they really want.

 

[QF WP]

Not 2015. It's the first quarter of 2014/15 meaning it will be gone by the end of September. In fact, a check of the schedules reveals 21 July is the death day for QF international in Perth.

I can see somebody organising an AFF events around the last flights

 

[QF WP]

I agree it's good QF is taking steps to remove unprofitable people and routes from the business.
Sure they're an Australian airline but first and foremost they are a for-profit company.

My observations:

- Looking at availability for QF/EK SYD-DXB every month for the next 6 months - EK has much higher loads on all dates. Some are sold out where QF has 9+ economy available. Similar story for MEL and BNE. QF codeshares on EK have higher loads. (What this tells me is that passengers are trying EK - realising it's better than QF and telling their friends/family to go with EK. This also explains why QF codeshares are booked out. Some folks are happy to pay the higher price for QFF benefits but prefer the superior EK aircraft.)
- Same periods, generally QF has lower DXB-LHR-DXB loads than EK ... and EK has more flights than QF to boot.

- Just about every major competitor in the region is profitable (NZ,SQ,CX,FJ,GA).. even north american airlines are massively profitable now with $billion profits. Looking at intl departure numbers - less people are choosing to fly Qantas.

- QFF has a very small membership based compared to other legacy carriers by focusing only on AU. Other FFPs are also more profitable overall than QFF.

- Pulling SIN from Perth is interesting. This will surely alienate more status frequent flyers who fly that route. Suddenly with the loss of SIN it may make more sense for these high-rev passengers to fly with another airline or alliance. The overall cost to the business for pulling out of SIN is likely to be much higher than the actual flight expenses alone.

I think it's about time QF/QFF invested in some smarts to learn what drives their passengers to fly with them and not the competition. To determine what drives customers to spend more on an emotional level and not just look at transactional data. For example I'm happy to pay $400 one-way BNE-SYD in Business; but if the price isn't available then it's back to a $79 red-e-deal for me. Everyone has their own internal measurements and armed with this knowledge QF (or VA...or any airline reading this) could quickly figure out a way to double or triple flight revenue (*disclaimer: my new business helps FFPs do this).

Focus groups/surveys are just hurting their feedback and decision making IMO. You can't trust customers to tell you what they really want.

+1

Maybe they'll need your business acumen and services, but wait...they can't afford to pay you...will they barter flights for pay??

 

[a330j]

The Board members should do the honorable thing and fall on their swords, or a significant number. Replace the Chairman, perhaps with Rod Eddington who at least knows how to run a profitable airline and turned BA around, and then begin the search for new CEO - maybe James Hogan can be enticed back from Etihad.

 

[trippin_the_rift]

+1

Maybe they'll need your business acumen and services, but wait...they can't afford to pay you...will they barter flights for pay??

Hey - I'm easily bribed with a black card and board position

 

[PaulST]

Any news on QF63-64 Syd-Johannesburg route? There were rumours of it being dropped but I've heard nothing since the announcement (admittedly I've been out all day and am just catching up with everything now).

 

[SQ421]

Interesting when you look at historical profit after tax as published by the ABC

https://twitter.com/ABCNews24/status/438877473275514880/photo/1

Qantas made a higher net profit in the year AJ was appointed than they have made for all the years since he took over combined.

And we are meant to believe it is the fault of none other than VA/SQ/NZ/EY, Qantas Sale Act, the competition on international routes, the unions, the fuel prices, the strong Australian Dollar that the graph looks the way it does.

 

[Lonely Flyer]

Ditto here. Will never fly Jetstar to Singapore. Will now fly Singapore air exclusively to Singapore 2 or 3 times annually.

It is a sad day for loyal Qantas flyers in the west.

It appears there were not enough of them.

 

[MarcB]

This little chestnut should make some people happy:

"From later this year, Qantas’ Sydney – Honolulu service will be operated by Airbus A330 instead of a Boeing 767, which will help facilitate the early retirement of our 767 aircraft ."

 

[Aussie_flyer]

I cant see how QF can make too many more changes to catering given that QF catering have only done domestic meals and this has been so for some time with QFi meals being prepared over seas from what I hear and being carried back and forth as needed.

Haha, no. Catering for ex-Australia flights is done at the port it departs from. Catering for the flights ex-<insert foreign port> is done at that foreign port. There is no loading catering in somewhere like Dubai and using it for that aircrafts next flight out of Australia. That is absurd.

 

[Lonely Flyer]

I agree with this. A lot of my friends think that when they fly QF to London that the service is non-stop,

It is what the STs call a direct flight.

 

[Ansett]

Haha, no. Catering for ex-Australia flights is done at the port it departs from. Catering for the flights ex-<insert foreign port> is done at that foreign port. There is no loading catering in somewhere like Dubai and using it for that aircrafts next flight out of Australia. That is absurd.

Having done a considerable amount of work lately at QF catering I can assure that catering is done in over seas ports and does fly to and from. Perhaps not all but a damn good number hence why there has no been no investment specially in the Mel facilitry where considerable savings could easilyh be made for a small outlay.....

 

[cmon0005]

The thing that gets me with QF is they never try (sometimes they have but not enough) other ways to remedy unprofitable routes.
Like for the PER-SIN route they should have downsized to a 737 rather than completely chopping it, that and retiming to what customers want could have made it profitable or at very least narrowed the loses to a minimum, thus still having a presence and if demand is consistently high either a 2nd 737 could have been introduced or go back to an A330.

MH have put a lot of 737's on Intl routes that have lower demand but still maintain a presence, (DRW-KUL, KTM-KUL, 1x BOM-KUL, 2x HKG-KUL.etc.etc) Sometimes a presence even if small and insignificant is far better than no presence at all!

 

[Aussie_flyer]

Having done a considerable amount of work lately at QF catering I can assure that catering is done in over seas ports and does fly to and from. Perhaps not all but a damn good number hence why there has no been no investment specially in the Mel facilitry where considerable savings could easilyh be made for a small outlay.....

The meals are completely different ex-SIN to say ex-MEL. I wonder why they bother with the catering trucks pulling up to the aircraft at all based on your theory

The aircraft don't have the capacity in the galleys to carry that many meals

 

[smit0847]

Any news on QF63-64 Syd-Johannesburg route? There were rumours of it being dropped but I've heard nothing since the announcement (admittedly I've been out all day and am just catching up with everything now).

JNB not mentioned today.

 

[VHOEJ]

Has anybody ever accused this CEO and Board of knowing how to run a business?

Exactly.

Just remember that stupid decision to split the two airlines - all that did was duplicate lots of roles (and management roles specifically) for what outcome?

 

[moa999]

new fact sheet
Qantas Fact Sheet

Couple of new points.
- Seasonal SYD-MHU (Mt Hotham canned)
- Will consider seasonal services from PER, like PER-AKL
- Confirmation that the total investment in the four Asian Jetstar's is approx $300m
- New BNE lounge (which was in one of the other presentations is clarified as Brisbane (Domestic))

plus more info on specific job restructurings

 

[EmilyHoward]

After they scrap Singapore that is it for Qantas in Perth internationally. I suppose they will shutdown the Q-Club and vacate the building!

Fortunately the Q Club in Perth Int isn't THAT good anyway. I'm being kind here too!!!

EH