CEO retiring, what changes at Qantas would you like to see

[Daver6]

Abnormal profit - Wikipedia

en.wikipedia.org

My bolding...

According to the theoretical model of perfect competition, abnormal profits are unsustainable because they stimulate new supply, which forces down prices and eliminates the abnormal profit. Abnormal profit persists in the long run in imperfectly competitive markets where firms successfully block the entry of new firms.[3] Abnormal profit is usually generated by an oligopoly or a monopoly; however, firms often try to hide this fact, both from the market and government, in order to reduce the chance of competition, or government intervention in the form of an antitrust investigation.[citation needed]

Based on that, can hardly blame QF when the government goes out of their way to remove competition from the market! It would be rather ironic for the government to legislate around abnormal profits when they actively create the conditions for them to occur.

 

[RooFlyer]

Where I really was going with this, is either the actual earnings per share or earring as a percentage of share price excessive large compared to other companies or other rates or return for a similar risk profile?

What I really find bizarre is when people complain about these super profits. If you think it's so good, why not get in on the action and buy some shares? You too can become rich!

I'm a bit out of practice, but I think what you are asking about is the Price/Earnings (PE) ratio.

Really, really hard to say what a 'good' PE is, especially in aviation! but long term, the Australian market usually supports a PE of 12 to 15 - but it varies sector to sector. I'm more used to mining where stocks go for years - sometimes forever, without any 'earnings'

I googled and found this graph - have no idea if its been calculated conventionally or not, but sorta looks right.



So went from expensive (high PE) to cheap based on recent results. I guess it went negative during covid. But you rightly asked about similar risk profile . I found this for Auckland Airport



Long term average of 20 - running a monopoly asset is good business!!

So, Qantas' PE is currently about 5.5, which says dirt cheap. But that's the current price over the last-announced earnings. I'm afraid I don't have access to brokers' reports anymore, for some forecast P/Es. Given the very recent developments that could strongly affect earnings in the coming year, brokers would be brave to put forecasts out right now.

 

[Mr H]

Based on that, can hardly blame QF when the government goes out of their way to remove competition from the market! It would be rather ironic for the government to legislate around abnormal profits when they actively create the conditions for them to occur.

I haven’t blamed QF (or Coles) or suggested the government should legislate against them - though others might.

 

[AustraliaPoochie]

Also with with Aust Senate grilling, of QF and QFF, maybe it will be harder to get anywhere.
The Aust Senate is also via research, is finding, that with the number of members at 15m, rewards seats are harder to find.
And that the QFF system is the most profitable in the whole org.
Remember a few years ago, the Aust Senate heard that Aust credit cards fees were too high, and they decided to split up the way cards worked, and that Visa/Mastercard of the debit variety, had to carry the wording on it as "debit" on the front.
And then card companies and banks, decided to decrease the earn rate of cards.
Long ago, it as 1 point per $1 spent, now some cards only earn 0.33 points per $1 spent, and no points on some bills.
Improvements, enhancements, enchancements...
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Maybe an annual fee is brought in, for the QFF system, and they give us "something tokenistic" for it.
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Qantas Frequent Flyer next on Senate hit list
Paywall with the *Australian newspaper*, as in the Australian.
Doesn't give me any confidence if they make it harder for QFF to operate.

 

[Julesmac]

That would help. But I also think having the CEO tour the airports in Australia and talking to travellers will do a lot more good than having focus groups. Ask real people in the QF lounge what they think of the airline. Head over to the customer service desks and ask travellers what they think. Step on board some flights and ask passengers what they think.

I reckon if the new CEO spends just 15 minutes talking to people at the SYD domestic, MEL INTL J and HBA domestic lounges they would have everything they need to know to improve the lounge experience.

-RooFlyer88

There's a US show called Undercover Boss. Boss works at several of thier businesses undercover - and it's a real eye opener. Then she'd really find out where the bumps are

 

[PineappleSkip]

Sometimes the problem is most ordinary folk are starstruck with the CEO being there they don't say anything or sugar coat their views.

The other problem with these sort of CEO talking to the plebs forays is that the CEO will be sheperded by local minions who feel they have a lot to lose if angry punters are found on their turf, or worse yet they can be PR exercises.

Yeah I think I'm rememberingg the BA tie-up pre One World.

IIRC that has been around for a long time, and there was a tieup of sorts between QF and BOAC even before Captains Club was a thing.

I can't remember if I mentioned that I'd be whispering in Vanessa Hudson's ear "fix your %^$# lost property service!"

 

[Catweazle]

Heard on the news that A.J. is leaving two months earlier.

Curious why you'd bother not to wait, because two months really isn't any time in the grand scheme of things, right? After all this time, I'd just wait out the next two months then retire.

Perhaps it comes from being a school teacher. I wouldn't retire until the end of the year, when I do forty odd years from now because it seems weird to bail halfway through one's line of duty.

 

[AustraliaPoochie]

And Boston Consulting will be paid more to deal with the low reputation or QF, and try to increase their PR level.
Trying to wipe the slate clean.

 

[Guvner]

"The head of Qantas’s information division has resigned, as the business grapples with the fallout after a torrid three weeks which culminated with the shock departure of Alan Joyce on Tuesday.

Sam Charmand had worked at Qantas for nearly 16 years and is the second senior leader to quit the embattled airline business since it became embroiled in legal action launched by the consumer watchdog over allegations it falsely advertised and sold tickets on cancelled flights."

Senior leader quits while Qantas awaits High Court verdict

A senior Qantas executive has resigned, following a torrid three weeks for the airline business while it awaits a key legal ruling following its High Court appeal.

www.theage.com.au

 

[PineappleSkip]

I would like a small layer of foam between the seat frame/tray table and the leather on the ex-jetstar Qantaslink A320, the seats are just so unbelievably uncomfortable, I don't understand how anyone can find that seat design acceptable.

Would a small layer of duct tape suffice?

 

[AustraliaPoochie]

Re: duct tape, yep, seen that.
On my 737 in Jul, MEL - AKL, from the inflight entertainment box under the seat in J, from the one in front, 2A to the base of 3A, following the metal bit that the chairs of the aircraft are bolted onto...
Probably means that the 737 I was on, had the inflight screens retrofitted.
That inflight entertainment box also meant less footwell space.
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The QF ship, Its sinking innit?
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Rooflyer, maybe that is why QF will not spend the money to upgrade/modernise/gut the QFi AKL J/F lounge of its old furniture, and put new furniture and fittings in there.
Am passing through in Dec, will have a look at it from the outside, and report back.
Not flying QF this time from AKL, so no internal visit.
Maybe will do that in Jul 2024.
Probably that lounge would still be touched "yet" by then.

 

[TheInsider]

Re: duct tape, yep, seen that.
On my 737 in Jul, MEL - AKL, from the inflight entertainment box under the seat in J, from the one in front, 2A to the base of 3A, following the metal bit that the chairs of the aircraft are bolted onto...
Probably means that the 737 I was on, had the inflight screens retrofitted.
That inflight entertainment box also meant less footwell space.
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The QF ship, Its sinking innit?
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No 737 screens have been retrofitted.
So duct tape on an inflight entertainment box at your feet, makes it a sinking ship?!

 

[AustraliaPoochie]

No, more so proverbially speaking.
So many senior staff have jumped ship, ie, sinking ship...
Will take a lot to train up junior staff to take over skills wise.
Yes, I know VH had been with QF for a long time, but I mean the other staff member that jumped, (not AJ either! ).
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So, no 737s screens have been retrofitted, ie, none of the rear of the seats in J ie the cushionings were cut and removed, and the entertainment screens put in, and power to it are in that box, and the duct tape covers the wires?

 

[TheInsider]

So many senior staff have jumped ship, ie, sinking ship...

So, no 737s screens have been retrofitted, ie, none of the rear of the seats in J ie the cushionings were cut and removed, and the entertainment screens put in, and power to it are in that box, and the duct tape covers the wires?

So the CIO goes, that's currently one.

The 737s with a screen were all fitted by Boeing (or what ever other company installs them) when the aircraft was built, in the factories.

If they retrofitted, then I believe all 737s would've had IFE in seat already.

With the 737s that had an extra row fitted in economy, the seats would've most likely been ordered with the equipment built into the seat, or at least the cut out.

 

[AustraliaPoochie]

Previous CIO gone.
Previous CEO gone.
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Some say that VH and AJ were on the same "wavelength" and that "some view her as part of the problem".
Maybe true as AJ would have needed people to back up his decisions.

 

[Quickstatus]

"some view her as part of the problem"

She was the CFO. She had significant influence in the operational decision making and strategy within the C-Suite. It is not just a support role managing the books, financial reporting and statutory compliance.

 

[jrfsp]

https://www.tiktok.com/video/7277782914090241281

It’s quite a (long) story (last nights QF93), it is just another tale of customers swore off QF through terrible customer service

Reposting from @Harrison_133

 

[AustraliaPoochie]

Wow, ta for that one, Jrfsp.

 

[MARTINE]

https://www.tiktok.com/video/7277782914090241281

It’s quite a (long) story (last nights QF93), it is just another tale of customers swore off QF through terrible customer service

Reposting from @Harrison_133

Wow - that was awful

 

[Quickstatus]

From The Australian today - passenger interviewed about her experience on the 6hr delayed QF93

“This isn’t their first rodeo, they didn’t have any contingency plan and they’re never on the front foot,” Pip said.
“You’ve got to get on the phone to them, you’ve got to chase them up, you’ve got to be the one that tries to get your compensation or get your complaint in.”

Ms Hudson, rather than make appointments with Boston Consulting, why don't you sit down with the passengers and listen to them
Please review Point #4 above on how QF can be great again. (Consulting Invoice is in the mail thanks)