How would you run Qantas?

[Mogul]

... into the ground. I know nothing about running an airline.

But man i'd pay myself some fat bonuses as i did it.

It's AJ in disguise.

 

[UP4014]

I think I might buy a small parcel of share in QF. The timing seems right, a change of CEO in 2014 could see them jump a few %.

 

[Pushka]

I think I might buy a small parcel of share in QF. The timing seems right, a change of CEO could see them jump a few %.

Might be right. Or very wrong. But no doubt AJ is on a pretty tight contract so getting rid of him might be costly. I'm thinking theres no performance clause in his contract.

 

[777]

I'm thinking theres no performance clause in his contract.

If there's a "no performance" clause that would certainly explain years of bonuses. He's completely nailed that.

 

[Flying mermaid]

I think it's more about working out the reasons why the airline is failing. Staff benefits in excess of industry or comparable standards is an easy one to target. But it's just one part of a very complex situation. Qantas is a PLC so has to answer to its shareholders. Who just lost a lot of their investment. So they are answerable to perks that privately listed companies don't have to think about.

People here could rightly insist they have an investment in Qantas too through their status loyalty and FF programs. They could well respond to the issue that they have flown loyally with Qantas on more expensive flights in order to receive benefits of status points.

I think there are a lot of problems with staff in terms of inconsistent service etc etc,but I put it down to bad management. Leadership is from the top. If you don't train properly and monitor that standards are adhered to you get sloppy service, Priority boarding that sometimes work and sometimes staff can't be bothered with. The banks are publically listed companies and give cheap loans to staff and I am sure have staff travel in J and still make whopping profits, so I think Qantas' problems go a lot deeper than staff costs (although the cost structure left over from previous years doesn't help). Inconsistent service and not delivering on providing a premium product among others. When I travelled to South Africa a few months ago the toilet door had holes in it! I have been a loyal Qantas person for close to 40 years but that was the last straw for me. I think much of Qantas' problem is arrogance - they believe they are a premium airline and don't have to do anything to keep people happy or consistently PROVIDE the service. When we came back from Hong Kong in F they handed out J amenity bags not F ones - Did it matter - I guess not - I usually just use a few bits and pieces and then leave it behind as I prefer my own products but it still annoyed me when I realised what had happened...So I think if Qantas could get itself back to being a premium airline then maybe it wouldn't be flying with half full premium cabins and staff benefits wouldn't be an issue....

 

[bammac]

I think I might buy a small parcel of share in QF. The timing seems right, a change of CEO in 2014 could see them jump a few %.

They have a lot of value to blow off, before it becomes a good buy.... AirNZ was a $0.17 before the NZ Government stepped in. It's going to require the Aust. Government or Emirates to rescue Qantas... not a new CEO. They aren't going to do so until they get it for a bargain price.

 

[Simo]

We always talk about QF being constantly inconsistent in what it does but most big businesses are like that.

A lot of the time it comes down to the operator/staff member and the person who is dealing with them.

 

[BD1959]

We always talk about QF being constantly inconsistent in what it does but most big businesses are like that.

I think Alan's working hard to rectify that.

Regards,

BD

 

[Supersonic Swinger]

I have no real idea how to run an airline, they are complex beasts and I don't envy anyone running them. Low margin, capital intensive and difficult to make changes at the speed other businesses can.

As a customer, I wish they focused more on exploiting the OW network which is valuable as a customer. QFF is effectively discouraging the use of BA, QR and MH, to me that lessens the value of the program and drives me to other options.

 

[Flying mermaid]

We always talk about QF being constantly inconsistent in what it does but most big businesses are like that.

A lot of the time it comes down to the operator/staff member and the person who is dealing with them.

That is certainly true - the staff are human beings not machines. But there can still be a level of consistency in whether procedures are followed or not - that is the whole essence of having them - to try and make sure there is at least a consistent base - some staff will go beyond that. I think David Jones is an example of a company that lost its way with seriously outdated point of sale systems, lack of online presence and quite bad customer service. They have made big inroads in turning that around - it is actually a pleasure to shop there over the last year (and I hate shopping) because staff are so helpful. Maybe instead of getting travel benefits as part of their packages Qantas frontline staff should be paid commissions which can be traded in for travel benefits.

 

[openseat]

Qantas is gilt-edged old economy vested interest Australia - no matter what CEO you get in, not much is going to change. The old economy is being destroyed, cf. Holdens and Ford, and as a country we are nowhere near prepared for the pain to come, nor are we willing to prepare for it now.

 

[wallaby1]

Remind the Staff that passengers are not "Self Loading Freight"!

Remember not to treat the Staff as "Self Loading Freight".

 

[THE TRIMMER]

Shouldn,t have let John Borghetti go ,he probably knew all of Qantas,s forward planning.Virgin,s gain.

 

[zachary.august]

Qantas is gilt-edged old economy vested interest Australia - no matter what CEO you get in, not much is going to change. The old economy is being destroyed, cf. Holdens and Ford, and as a country we are nowhere near prepared for the pain to come, nor are we willing to prepare for it now.

I completley agree. QF is very old world and people have hypocritical and unfair expectations. We expect QF to be our Australian airline at all costs but yet, people still fly the cheapest fare of the day. We expect QF to service virtually every major point on the globe from both coasts yet don't understand that every other airline that flies these routes is either hubbing and/or has a much much lower cost base. If we want QF to meet our expectations, then we need to part nationalise it and be done with it. If the government is picking up QF's bill then yes, let's fly to Timbukto from Cobber Peedy but until that point QF needs the power to generate it's own capital and run like any other business.We expect QF to be this national saviour, for example flying into disaster zones to pick up Australian's and yet no one wants to put the money where their mouthes are. Just my two cents

 

[maninblack]

for example flying into disaster zones to pick up Australian's and yet no one wants to put the money where their mouthes are. Just my two cents

I cannot really think of more than a few examples when QF has done this other than after Cyclone tracy and QF was owned by the government then and one or two flights to coughet after the Tsunami. There may be a few other examples but it has not been an impost on Qantas. When they run army charters and so on, they get paid at commercial rates. Essentially for 5 years after the Ansett collapse QF was the only game in town and generated $billions in profits. Like so many Australian businesses their dividend payout ratio was way to high and they failed to tke advantage of this unusual situation.

 

[zachary.august]

I cannot really think of more than a few examples when QF has done this other than after Cyclone tracy and QF was owned by the government then and one or two flights to coughet after the Tsunami.

They airlifted Australian's out of Lebanon during the civil war, out of Egypt during their thing, Fiji during their troubles and additional flights out of Japan post earthquake. Just to name a few

 

[Simo]

IMHO,

The flights into disaster areas should be funded by the Govt and then to my understanding Govt should seek money back from the pass via Travel Insurance.

 

[MEL_Traveller]

I completley agree. QF is very old world and people have hypocritical and unfair expectations. We expect QF to be our Australian airline at all costs but yet, people still fly the cheapest fare of the day. We expect QF to service virtually every major point on the globe from both coasts yet don't understand that every other airline that flies these routes is either hubbing and/or has a much much lower cost base. If we want QF to meet our expectations, then we need to part nationalise it and be done with it. If the government is picking up QF's bill then yes, let's fly to Timbukto from Cobber Peedy but until that point QF needs the power to generate it's own capital and run like any other business.We expect QF to be this national saviour, for example flying into disaster zones to pick up Australian's and yet no one wants to put the money where their mouthes are. Just my two cents

do we expect it to be 'our' airline at any cost?

I dunno about that. QF has supposedly redone its IT and booking systems to be smartphone compatible. How many smart phone users want QF to be 'our' airline? (making the assumption here that folks willing to fork out for long haul First and business class fares probably have someone to do it for them, or don't want to be fiddling on a 5' screen to purchase a $16K airfare).

What we continually hear is the bleeding heart story... but at the same time there doesn't seem to be much effort at attracting and retaining customers. Most airlines try and encourage people to fly with them. What is my impression of Qantas? That they continually put up barriers to make it as hard as possible to fly with them...

• a lottery / won't through check bags on oneworld itineraries
• won't interline in SYD if on separate tickets (and for example connecting to Thai)
• won't waive assistance fees for bookings that CAN'T be completed on line
• severely reduce partner points on some oneworld partners (is that QF or the partner airline that does that? i don't know but no one has explained it to me)
• take away breakfast choices
• continue to have ultra slow meal services (what's the point in being able to recline my seat during take-off but then wait two hours while they serve a meal??)
• removing FF benefits such as anytime access because of lounge crowding, but then offering so many double status credit deals I wonder if removing ATA made a difference?
• not catering premium cabins with advertised products such as champagne
• handing out business class amenities to first class pax.
• having inconsistent crew
• removing mASAs from the website
• not offering the code share deals I WANT
• withdraw services from PER/ADL but, for ticketed passengers, expect you to fly via sydney or get a refund... what happened to protecting you on another carrier that flies the route direct?
• continued high credit card fees. these aren't paid by passengers booking qantas from other countries, but australian passengers get slugged?? What's that about?
• and others

There are times when flying qantas is a struggle. Why make it so?

 

[maninblack]

They airlifted Australian's out of Lebanon during the civil war, out of Egypt during their thing, Fiji during their troubles and additional flights out of Japan post earthquake. Just to name a few

The Australian government paid for most of those charters. All QF did was use excess capacity to gradually bring a small number of people back fom Europe after the 2 Egypt charters for example. Then AJ tried to do a bit of grandstanding about QF's hero status

 

[Awesom Andy]

The Australian government paid for most of those charters. All QF did was use excess capacity to gradually bring a small number of people back fom Europe after the 2 Egypt charters for example. Then AJ tried to do a bit of grandstanding about QF's hero status

And one of those charters was delayed by 24 hours after the aging 744 went tech.