27th February Big Qantas announcement

[Robbi]

What's wrong with QF's long haul fleet and why are Boeing's twin engine aircraft better? Personally I prefer the A380 over the 777.

 

[markis10]

I wonder what the future is for Jetconnect, having just got of an EK A380 I have got to say they have no competition, crew are fantastic, food great and love the bar! I could be slightly influenced by 18yr old Chivas, and the odd Aspley girl posing as EK crew.

 

[jetlagger]

I wonder what the future is for Jetconnect, having just got of an EK A380 I have got to say they have no competition, crew are fantastic, food great and love the bar! I could be slightly influenced by 18yr old Chivas, and the odd Aspley girl posing as EK crew.

What a pleasant position to be in..

 

[bazoukka]

AJ will resign at the end of the financial year.
QFI flights will add twice a week service from adl and Perth.
QFI will introduce three weekly services to CDG, direct from Sydney. passengers from other ports will connect to it in DXB.
all flights will have code share with EK &MH.
The new flights will come into service by the end of 2014. A380 will NOT run on the new routes initially.
No change to QFF.


Share price will increase after the announcement.

 

[drewbles]

My tip on the big announcement is the merger of Jet Star and Qantas; Virgin has proved the hybrid model works, and with recent financial performance, they would need to adapt to something very similar, but I would say the established idenity of Qantas will stay, and the Jet Star influence will deliver a 3 cabin class service on Domestic; J, Y+ and Y; and up to five class service on International; F, J, Y+, Y, Y-.

Interesting theory. Whilst I openly admit I have zero knowledge of running airlines, it does back up some overheard GalleyFM [tm] I heard on QF the other day. I heard the CSM and another FA talking about 'everything going from JQ to qf', but I admit that's *all* I heard. I didn't hear any more of the conversation unfortunately, just that it was a 'rumour' they'd heard.

Of course, take GalleyFM [tm] with a small grain (pillar?) of salt.

 

[SeatBackForward]

Interesting theory. Whilst I openly admit I have zero knowledge of running airlines....

So the announcement is that you're joining the board or becoming a senior management member?

 

[Mwenenzi]

.... Whilst I openly admit I have zero knowledge of running airlines,.... .

But many many many others here on AFF say they do.

But reading the comments many have no idea about input costs to a business, especally Australian total all in labour costs

 

[BoyZeus]

GalleyFM [tm]

Genius - is that found on AM, FM or UHF?

 

[Must...Fly!]

I'd hazard a guess at transferring the remaining A380 options to EK in return for 6-8 777 orders from EK for quick delivery from Boeing, allowing to accelerate the retirement of the 747s and downgrading all Asia international (sans SYD-HKG) to A330 (which won't be an issue after the cabin refurbishments which could be accelerated).

One could hope for an announcement regarding QF9 ceasing at DXB then operating as a new flight number to Germany to complement EK services but that's unlikely as Berlin would be the preferred option and can't handle it and who knows when Brandenburg will open...

Then again, I've been saying these two things since the EK tie up was announced.

 

[Robbi]

Genius - is that found on AM, FM or UHF?

Channel #69 on the IFE

 

[Flying Fox]

How about orders for 777X-9 ?

 

[drewbles]

So the announcement is that you're joining the board or becoming a senior management member?

I'm not from Ireland, but have European heritage so who knows, perhaps I'm in with a chance!

 

[drewbles]

Genius - is that found on AM, FM or UHF?

It's found on 1B

 

[Programme]

The big announcement is going to be a huge half year loss and a plethora of "enhancements".

...but back to the wild speculation: what about combining the North American and European routes like NZ does (SYD/MEL/BNE-LHR via LAX or DFW?). QF has so many competitors between here and Europe going the other way around, so they might just give up completely, and there are plenty of planes sitting around LAX/DFW all day long, so the incremental cost of sending them to Europe might be lower than a separate route via DXB despite the distance being slightly greater.

 

[Sprucegoose]

A serious and uniformed guess:

More route rationalisation CGK/MNL and noumea to go
Integration of JQ into the EK lovenest
Ordering four 777s for DFW etc
Cancellation of the remaining A380s

Isn't the MNL route making money??

 

[markis10]

Isn't the MNL route making money??

I doubt it with the recent routing changes and the introduction of new competition from JQ and PR

 

[moa999]

I'd hazard a guess at transferring the remaining A380 options to EK in return for 6-8 777 orders from EK for quick delivery from Boeing, allowing to accelerate the retirement of the 747s and downgrading all Asia international (sans SYD-HKG) to A330 (which won't be an issue after the cabin refurbishments which could be accelerated).
.

I don't get the replace 747s with 777s thing.
9 of the 747 have just had substantial refurbishment and are relatively young and fully depreciated. The others are going anyway.

While you may save $s in fuel, you will pay extra in addidtional depreciation/interest/lease costs.

You will also lock yourself into another problem in a few years when other airlines get the new 777s that will probably have 15-20% better burn.

In my mind QF is better of skipping the current 777 generation but getting early delivery of the next gen 777, or big A350

 

[markis10]

I don't get the replace 747s with 777s thing.
9 of the 747 have just had substantial refurbishment and are relatively young and fully depreciated. The others are going anyway.

While you may save $s in fuel, you will pay extra in addidtional depreciation/interest/lease costs.

You will also lock yourself into another problem in a few years when other airlines get the new 777s that will probably have 15-20% better burn.

In my mind QF is better of skipping the current 777 generation but getting early delivery of the next gen 777, or big A350

A 777w would allow QF to sell 50 more seats ex DFW and load the belly with cargo versus passenger baggage only, there is about a 20% difference in yield for the same pax load on a 777 vs 747. Even UA understand it as does BA, QF is a slow learner, while NZ will be getting more 777s within 12 months of ordering.

 

[Must...Fly!]

How about orders for 777X-9 ?

Boeing don't have a launch customer for the type yet, it would be a very handy hat for management to point to the future of QFi, especially if they could get some older 777s from EK to use in the interim, as first delivery for the 777x is due in 2020. This might be tempting given the lack of an immediate capital commitment requirement...

A 777w would allow QF to sell 50 more seats ex DFW and load the belly with cargo versus passenger baggage only, there is about a 20% difference in yield for the same pax load on a 777 vs 747. Even UA understand it as does BA, QF is a slow learner, while NZ will be getting more 777s within 12 months of ordering.

Said it better than I could markis.

 

[scaredeycat]

Maybe Berlin Brandenberg will become a new European hub?