27th February Big Qantas announcement

[amaroo]

This could get interesting still.

Tony Abbott plays down possibility of Qantas debt guarantee

Politics! All part of the game.

 

[ajw373]

JQ isn't part of Qantas, it is part of the Qantas Group.

Small subtle difference. So you can delete that list as it isn't relevant.

It is entirely relevant. Qantas and Jetstar may be two brands, but the one company. Virgin Australia on the other hand may well have the one brand, but they operate that brand as a two tiered system, with one part being more like Qantas everyday and the 2nd part remaining true to their LCC origins. So really no different deep down. Now of course Virgin now has a third tier in Tiger.

 

[mannej]

It is entirely relevant. Qantas and Jetstar may be two brands, but the one company. Virgin Australia on the other hand may well have the one brand, but they operate that brand as a two tiered system, with one part being more like Qantas everyday and the 2nd part remaining true to their LCC origins. So really no different deep down. Now of course Virgin now has a third tier in Tiger.

But QF have pulled out of PER intl (apart from seasonal services). You can't say they still fly into PER (intl) just because JQ do. The argument is nonsensical.

 

[serfty]

Interesting interview with AJ on the 7:30 report this evening. There is one particular part that I found interesting and indeed directly refutes what many 'pundits' have been quoted: (Qantas chief gives no guarantees on keeping jobs in Australia - 27/02/2014)

SARAH FERGUSON: ... the response of many analysts today is that this announcement of yours was not strong enough. If we look, for example, just at the international arm, part of the business which is losing huge sums of money, you haven't taken the hard decisions to cut the loss-making routes. Why should you get handouts if you're not prepared - you and your board are not prepared to take those decisions?

ALAN JOYCE: But we have. I mean, if you think of the routes that we have taken out, we've withdrawn two of our services to London, we've withdrawn from Frankfurt, we've withdrawn from Auckland, LA. I could keep on listing...

SARAH FERGUSON: Yes, but you haven't attacked the big loss routes in South America, in South Africa.

ALAN JOYCE: But you don't know the route profitability of Qantas. And can I tell you that every route that's left generates cash for us. ...

 

[davidj]

Interesting interview with AJ on the 7:30 report this evening. There is one particular part that I found interesting and indeed directly refutes what many 'pundits' have been quoted: (Qantas chief gives no guarantees on keeping jobs in Australia - 27/02/2014)

I guess the chief exec should know which routes are bringing the cash in, I mean more so than Sarah Ferguson or an analyst right? In that interview he hinted that fact too.

 

[amaroo]

I guess the chief exec should know which routes are bringing the cash in, I mean more so than Sarah Ferguson or an analyst right? In that interview he hinted that fact too.

ABC = No Idea

 

[DrA]

Interesting interview with AJ on the 7:30 report this evening. There is one particular part that I found interesting and indeed directly refutes what many 'pundits' have been quoted: (Qantas chief gives no guarantees on keeping jobs in Australia - 27/02/2014)

Interesting call on the JNB and SCL routes. Lack of competition? I mean SYD-SCL the only other option is LAN with a pitstop in AKL. And there's no other direct option for SYD-JNB (just a codeshare on SA via PER). I'm not surprised these are revenue generating routes.

 

[BD1959]

Watching that interview, I'm more confused than before....

Interesting interview with AJ on the 7:30 report this evening. There is one particular part that I found interesting and indeed directly refutes what many 'pundits' have been quoted: (Qantas chief gives no guarantees on keeping jobs in Australia - 27/02/2014)
SARAH FERGUSON: ... the response of many analysts today is that this announcement of yours was not strong enough. If we look, for example, just at the international arm, part of the business which is losing huge sums of money, you haven't taken the hard decisions to cut the loss-making routes. Why should you get handouts if you're not prepared - you and your board are not prepared to take those decisions?

ALAN JOYCE: But we have. I mean, if you think of the routes that we have taken out, we've withdrawn two of our services to London, we've withdrawn from Frankfurt, we've withdrawn from Auckland, LA. I could keep on listing...

SARAH FERGUSON: Yes, but you haven't attacked the big loss routes in South America, in South Africa.

ALAN JOYCE: But you don't know the route profitability of Qantas. And can I tell you that every route that's left generates cash for us. ...

But those routes were long gone before Qantas' last Annual Report when (according to the same AJ) everything was good and on track and now "After a year of strong achievement the Qantas Group is in a strong position." If "every route left generates cash" then - in the context of the answer - there is no issue with QFi. Of course, there's a huge difference between cash and profit!

The "Treasurer's 4 points" - which were presented as pillars-of-doom: SOEs; QSA; National Interest Asset; need to cut costs; these were all in place back in 2008 when the Airline made a $1.4b Profit on revenues of $16b, despite jet fuel prices being US$3.88/Gal. Today's challenges include fuel prices, well today it's US$3.00/Gal ... down 6.5% on this time last year, when (again) things had been turned around.

"We've got lot of new aircraft today - the youngest the fleet has been in a long time" ... so is the fleet good or bad? Bad: we have to sell off the gas guzzlers, but we won't be replacing them with good, young aircraft "we're deferring, cancelling 50 aircraft."

So has the Government tied the debt facility to keeping jobs in Australia? Joyce danced and he prevaricated until another question was asked.

Yes, I'm more confused from watching that than I was before.

Regards,

BD

 

[Danger]

Interesting interview with AJ on the 7:30 report this evening. There is one particular part that I found interesting and indeed directly refutes what many 'pundits' have been quoted: (Qantas chief gives no guarantees on keeping jobs in Australia - 27/02/2014)

ALAN JOYCE: . . . And can I tell you that every route that's left generates cash for us. ...

That is a phenomenal statement, in my opinion, and locks him in to no route reductions for at least several months. I cannot possibly believe that more routes will not be cut.

 

[Pleb Status]

Does QF serve PER domestically only because east coast people may want to come and visit? Would they cut all WA services services otherwise ?

When I fly PER->BNE/SYD/MEL, I am always asked if I am going home like no one actually lives over here......

 

[Jousams]

I guess the chief exec should know which routes are bringing the cash in, I mean more so than Sarah Ferguson or an analyst right? In that interview he hinted that fact too.

If it does not affect boat people, gay marriage, conservative bashing or climate change, the abc doesn't care.

I would support the government giving all the ABC funding to Qantas as support.

 

[Jousams]

I did not watch the presentation today, but from the ASX releases it appears that QF has backed away from / not mentioned the 65% 'line in the sand'. Was there any mention of it today?

 

[CaptJCool]

Clive Palmers been on Lateline tonight - there will be no amendments to the Qantas Sale Act supported by his party - because they epitomise who we are - our social well-being - further he doesn't wish to support a debt guarantee and he wonders how the current Management could run the value of the company down from $10b to $2b.... and that their views of what to do need to be tested by independent experts

 

[QFflyermelbourne]

Man I can't help but feel they got away with murder today from journalists who don't understand the whole picture. There are so many questions raised from that presentation that didn't get asked. This is just getting started. The biggest area for me was the announcement of the 'reorganisation' of the A320 order. What the hell does this mean?

Are they cancelling orders? How many? Are they trads or the neo's? Will they lose their deposits or have they found a buyer and are they selling them for less than they have to pay airbus? The suspension of growth in jetstar asia: does this mean just the singapore based company called jetstar asia (as the presentation implied) or does it mean a suspension in growth for the entire asian strategy? No mention of jetstar japan or HK? This could potentially save/incur billions in expenditure but wasn't even mentioned!

 

[wandering_fred]

quote:
ALAN JOYCE: . . . And can I tell you that every route that's left generates cash for us. ...

Why is it I seem to recall from a management accounting course that cash flow does not necessarily mean profits ????
Just as I seem to recall that expenses can be allocated to cost centers that might not be appropriate...

Happy wandering

Fred

 

[froggerADL]

And she wouldn't have slept the night before, got to the airport six hours before her flight to have an $0.80 cup of Earl Grey in the terminal, worn her Sunday best, taken onboard only her purse, boarded in an orderly fashion when the flight was announced . . . .

Simpler times. Better times?

When my family came to Australia in 1974 my mother bought a 14 inch black & white TV for four weeks average weekly wage. Better times? I don't think so.

And we weren't ten pound poms. We paid and we flew Qantas.

 

[dfa1981]

This might be an unpopular opinion.

But I think QF is probably losing money on its flights to SEA, especially with all the capacity that had been added recently. I think the load factors on routes to SIN are lower than the average LF network wide.

I think the Australia-Singapore flights have to go.

Just leave Jetstar/Jetstar Asia to do the flying on its existing routes (Darwin, Perth and Melbourne) to Singapore. And use/codeshare on Emirates (which they currently do) to fly from Brisbane and Melbourne to Singapore.

Just keep Sydney-Singapore-Sydney as twice daily. Qantas could route passengers who still want to fly Qantas from MEL/BNE/ADL to Singapore via Sydney. I know SYD is a pain to transit. But this would help stem the losses somewhat.

The Australia-Singapore market is really cornered by the SQ group with SQ, Scoot and Tiger. I believe NZ's future return to Singapore is only made possible because of SQ handing over one daily flight to it.

 

[JohnPhelan]

That is a phenomenal statement, in my opinion, and locks him in to no route reductions for at least several months. I cannot possibly believe that more routes will not be cut.

Why? Because you don't want to?

 

[JohnPhelan]

Clive Palmers been on Lateline tonight.... and that their views of what to do need to be tested by independent experts

like Ben Sandilands ??

 

[Comoman]

This might be an unpopular opinion.



The Australia-Singapore market is really cornered by the SQ group with SQ, Scoot and Tiger. I believe NZ's future return to Singapore is only made possible because of SQ handing over one daily flight to it.

Tiger is now Virgin isn't it? Not SQ (directly anyway).