Alan Joyce Takes Over IATA

[eastwest101]

Of course I didn't say he buried DJ but he sure did crimp it's growth when he was CEO of JQ.
I really dont think it was the formation of JQ that has hurt QFi-if JQ wasn't snaring some of the cheaper end of the market I am sure that the Asian based LCCs would have an even bigger share of Aussies OS air travel.
The fact is every airline in the world has suffered and will continue to suffer.QFs location puts it at a huge disadvantage to most other airlines in the world.yet under AJ's stewardship QF has outperformed most other airlines including ones that I have read on this site are considered to be well run-eg CX.So credit where credit is due.
Now I really dont like AJs changes at QF along with probably the majority of AFFers-or at least the vocal minority.However the business can only succeed in the long run if it makes a profit so there is no way any of us are going to get our wish lists.

I agree with most of your comments - but its all predicated on cost being the only deciding factor for customers, not route network, timing of flights, service & FF loyalty etc. Otherwise everyone in the world would all be flying Air Asia X or Scoot with 400pax 777's. If you want to undercut Asian LCC's you go to the cheapest juristiction and do that, fine - but you don't devalue the brand and starve the profitable parent company of resources to try to undercut Asian LCC's with an Australian LCC. What happens is your Australian LCC will get "found out" in the market eventually (by better organized competitors) and you will also have lost your higher cost premium customers as well.

And those that bought QF shares at $1 could have sold them at $1.10 yesterday,9% clear profit in less than a week sounds pretty good to me.

The funny thing about that is that the people whom were buying in at 0.97c a few days ago felt like they were "standing in front of a freight train" when they bought their shares, and good on them. But hardly the safe feeling that investment grade would imply.

 

[drron]

Sorry you are missing my point.I tried to say that I dont like the changes AJ has made but by doing what he has done he has enabled QF to outperform most other airlines.So again credit where it is due.And one other point.If AJ hadn't been saddled with the Qantas Sale Act things could well have been very different now.
And again the majority of Aussies flying OS are not members of AFF or indeed frequent flyers.The majority I would guess are price sensitive

 

[vetrade]

Not sure we are on the same page yet drron....................despite QF undoubtedly out-performing most other airlines financially it is still not performing well as measured by the standard KPI's. Its latest profit downgrade and valuation are proof enough of that. Classifying its debt as "investment grade", especially if other airlines are used as the yardstick, does not justify classifying the company as investment grade - especially because ratings agencies have an abysmal record of success in recent years - just like all the economists who didn't see the GFC coming but who still persist in making predictions nowadays in the mistaken self-belief that they actually do know what is going to happen.

And making a speculative profit of 9%, by trading the short term vagaries of the market, after holding shares for only 2 days is not indicative of the company being investment grade. Nice to make money but not real "investing" by any real measure.

 

[The Rok]

In my eyes a company valued at $1,000,000,000 with cash reserves of $3,000,000,000 is definitely investment grade.

 

[drron]

To a share trader 9% in 2 days is a real "investment".In fact these are the people who have still done well in the last 4 years.Most buy and hold investors are underwater or close to it.
And I doubt those who bought at 97 cents last week felt like they were standing in front of a freight train.If they were buying because they thought thery would make a loss then they really should not be in the stockmarket.
And no matter what an individual's thoughts are the ratings are the ratings.AJ has done better than most other airline CEOs financially(in more ways than one!).And when you run an airline then the only meaningful comparison is with other airlines.
But I agree with you-we ain't seen the worst yet.It also amazes me that people trust the ones who have caused the problems to be the ones who fix it.Also a lack of attention to detail by financial journalists.Saying that our economy is going gangbusters because of low unemployment and growing GDP when the figures show that the participation rate in the workforce has been slowly dropping for years and Nett Disposable household income is falling give substance to people feeling that the economy is not as great as trumpeted.But all this really has little relevance to whether AJ has done a good job at QF or not.

 

[vetrade]

["To a share trader 9% in 2 days is a real "investment". In fact these are the people who have still done well in the last 4 years.Most buy and hold investors are underwater or close to it."]

Pedantism wins! Traders making profits by day trading and "most.....investors underwater or close to it".

My point exactly!

 

[docjames]

In my eyes a company valued at $1,000,000,000 with cash reserves of $3,000,000,000 is definitely investment grade.

They also have a series of loan obligations of $2,500,000,000

 

[markis10]

They also have a series of loan obligations of $2,500,000,000

Closer to 6000000000 when you factor in the lease commitments that would come not the balance sheet should a break up/ wind up occurs.

 

[JohnK]

Qantas brand has actually been quite stable over the years. Most people would rather fly Qantas than the opposition. I used to love stepping aboard Qantas aircraft when I was overseas.

Unfortunately it has been in rapid decline over the years and the current CEO is determined to get the best payout possible for himself. Not sure how these people end up in these positions as clearly he is not the best person to ensure this airlines survival in tough economic times.