How would you run Qantas?

[smit0847]

- All 787s to come straight to QF, not JQ. This is such an obvious first step. I don't think I will ever understand why they are going to JQ first - you expect people to spend top dollar flying the QF A330s to Asia yet you give people on $199 JQ fares to DPS a brand new plane with all sorts of features. People who fly JQ couldn't care less what type of plane they are on. Why would someone choose a QF A330 to SIN when they could have an SQ A380 instead?! Run down planes should go to JQ to thrash the last few years out of them before they go to the desert. Why not give the old dom 767s to JQ to run internationally? You wouldnt even need to spend any money to refit them - the extra legroom would be a bonus for pax.
- Install Y+ on the 787s - this will increase yield.
- Stop FLounge access to JQ pax regardless of status. That gravy train has been running for far too long.
- Stop handing out DSCs like candy.
- Beg EK to lease you 777s. They obviously like QF enough to partner with them, so explain why you need them and ask for any they can spare (i.e. old ones). A 10 year old 77W is surely more fuel efficient than a 20 year old 747? Put 77Ws on SCL, DFW, JNB and NRT and use 777-200s on secondary Asian destinations (CGK, MNL etc) - primary destinations like SIN, HKG and BKK can have the new 787s. Either retire the 747s or try thrashing them out on JQ on the peak routes. Offer EK the LHR landing slots you have leased to BA?
- Base as many crew off-shore as possible to reduce wages. It is not a right to work at QF.
- The A380 schedules seem to work well so I don't think they need to be touched. Consider where you are going to put the last few A380s you're getting - I assume they're considering BNE-DXB, BNE-LAX or maybe the second daily SYD-LAX. If you don't need them give EK your options in exchange for the leased 777s.
- Consider if the EK partnership is solving your European issues. If it is, great. If it's not, think about ways to fix it. Work with EK to level prices on the same flights - I understand QF codeshare flights on EK metal are more expensive than booking that flight on EK. People won't pay THAT much more for QF points and SCs so level the gap in prices to a reaosnable amount (10% variance?)
- Forget about JQ HK and try and make up with CX. North Asia is becoming much more important than South Asia as a transit hub (especially as it's closer to North America) so I suspect you need CX more than they need you.
- Talk to EK about converting flydubai into a JQ brand. I understand this may already be happening. You obviously know how to run an LCC well and this will give EK something as well.
- Incentivise long-term staff to take attractive redunancies to get rid of the dead wood.
- Reduce staff travel to employee and immediate family.
- Offer QF points for sale at all times (as US and AA do) - say 2.5c pp as a standard price. Most people won't buy them, some people would. Have a launch sale with a discounted price of 1.5c pp for the first month or something and do twice per year points sales for a discounted price or 50% bonus or something. This will reduce availability but it will also raise revenue.
- Don't sell QFF. You need to have control over it for it to continue being as effective as it is.

 

[MEL_Traveller]

- Stop FLounge access to JQ pax regardless of status. That gravy train has been running for far too long.

what about the on-board gravy train? Why would a WP shell out for business class on a day flight to SIN when they can have First class check-in, First class lounge, a bulkhead seat with shadow, business class PJs, business class amenity kit, noise cancelling headphones, business class wines and champagnes and an express card on arrival?

 

[dajop]

Put 77Ws on SCL, DFW, JNB and NRT and use 777-200s on secondary Asian destinations (CGK, MNL etc)

77W's are probably not going to help as much as you would think for SCL or JNB due to ETOPS requirements. This causes significant additional travel time, as per VA's shortlived MEL-JNB services.

 

[codash1099]

QF are not the only ones who need a polish:

Singapore Airlines – What happens when the premium disappears | AirInsight

 

[lastrow]

If I were CEO of Qantas I would give the airline a total makeover:

For Qantas I would:
Remove Qantas from all domestic routes
Transfer single aisle planes to Jetstar eg 737, 717, 320
Transfer older twin aisle planes to Jetstar eg 767, 300
Dispose of remaining 747's
Equip QF with new 777, 780, 350, 380
Concentrate solely on overseas routes, push the 'FlyingKangaroo' image.
Re furnish cattle class with PY seats on a 35 inch pitch,delete premium economy.
Re name economy Comfortclass (Cc) with a new premium image.
Retain J and F classes.
Introduce little things that PAX remember eg greet by name on boarding.
Market Cc as a new Qantas way to fly in style, at a cost little more than discount Y .
Set fares for Cc at the top end of industry Y levels but less than overpriced PY.

For Jetstar I would:
Replace Qantas and Qantaslink on all domestic routes.
Re name and re market JQ to escape the current cheap and cheerful image
Paint metal white with colour highlights to escape the dull primer look now used.
Install a limited Cc section at the front in lieu of full business class.
Retain existing Y seating
Offer Cc PAX meals to international Cc level and box snacks to Y passengers.
Use QF domestic gates, steer clear of new el cheapo terminals.
Set Y fares a bit lower than VA with special promotions and standby fares.
Set Cc fares slightly lower than J class on VA

Remember the days when TAA flew domestic and Qantas flew OS?. Let's get back to basics, let's reinvent the airlines we knew and loved.

 

[Anna]

I wish I would stop seeing this thread title as "How would you ruin Qantas?".

 

[zachary.august]

I think the solution lies in reducing the legacy staff cost base and/or receiving significant federal funding. I personally do not want to see QF become an internationally owned airline. I think for security, defence and national pride we need a national carrier, albeit as I stated earlier we need to support it. I think that a levy of maybe 3-8% on each booking for flights departing Australia for a year to fund a part nationalisation of Qantas. I assume we'd have about 3 million people travel out of and within Australia every year? That could potentially at a rate of 6% raise $18,000,000 and with some additional funding, allow the Federal government to assume a stake in QF.

 

[DaveB]

Not sure why the ownership of QF matters in regard to security or defence. Assuming a disaster, easy for the government to lease from whoever or in a worst case scenario, simply impound or commandeer planes no different to how countries handled liners in prior periods of need or conflict. The airlines will no doubt be happy as tourism demand would surely be taking a corresponding hit. If still not satisfied, simply make it a condition of sale/takeover for both VA and QF which both at some stage seems inevitable unless the government hoses more money against a wall.
With EK last month ordering a further 200 A380's and 777's on top of those already in the pipeline, the QFi fleet will be a flea to the elephant.

 

[Isochronous]

1. Start a service to YVR - AC has a monopoly and fills planes, there must be profits to be made. If we don't have the planes for a direct service I'd try a HNL-YVR or LAX-YVR tag at first to plug into the AA network. From memory AA only runs YVR flights out of DFW, otherwise you have to use the AS codeshare via SEA which technically isn't oneworld. North America is a strength for QF, we should try to take advantage of it. It might also help to create a codeshare agreement with Westjet, the growing Canadian carrier, to provide feed.

2. Fly to CMB to use Sri Lankan for Indian destinations.

3. Could one of the A380s parked at LHR all day do a tag somewhere - e.g. DUB? MAN? CDG?

 

[Awesom Andy]

1. Start a service to YVR - AC has a monopoly and fills planes, there must be profits to be made. If we don't have the planes for a direct service I'd try a HNL-YVR or LAX-YVR tag at first to plug into the AA network. From memory AA only runs YVR flights out of DFW, otherwise you have to use the AS codeshare via SEA which technically isn't oneworld. North America is a strength for QF, we should try to take advantage of it. It might also help to create a codeshare agreement with Westjet, the growing Canadian carrier, to provide feed.

A 744ER will do that non-stop with ease.

 

[Isochronous]

A 744ER will do that non-stop with ease.

But aren't they all committed to DFW services already? Also we need to be able to match AC on costs.

 

[Oneworldplus2]

I don't know how to run an airline, but I would be doing it differently to current methods.

Cutting routes + F class over the years is not something I would have done.

 

[Sprucegoose]

I see this thread loves the smell of AvGas up the nostrils, dives straight into the minutiae !

 

[Boris spatsky]

I see this thread loves the smell of AvGas up the nostrils, dives straight into the minutiae !

I hope it is not AVGAS - i don't want QF to start flying piston aircraft again!

 

[Awesom Andy]

But aren't they all committed to DFW services already? Also we need to be able to match AC on costs.

Only 3 aircrafts are needed to service DFW, there are another 3 left. I think a normal 744 can also do the route as well but I'm not an expert on the winds. QF won't be able to match AC on costs here, but if there's enough demand, and QF can regularly fill up the plane, then there are still some good margins to be earned. If they can make money from charging what they charge for SYD-DFW, then a similar price structure with a similar yield will definitely bring home some bacon.

 

[Melburnian1]

The head in the sand unions display a particularly stupid attitude:

Thousands of Qantas jobs could go, PM warned

Qantas may employ thousands of Australians, but the recent discussion is about how the airline is not sustainable with its current operations.

A large part of that has to be its excessive cost base.

From the management and pilots down to catering staff, remuneration and benefits as a total package is arguably either a bit or a lot more than staff at other airlines receive.

The unions have a choice: either agree to massive changes (which may include over time hiring a lot more Asian-based staff, who may not be Australian citizens) and preserve some jobs for Australian citizens domiciled in this country, or protest, go on strike, have work to rules and ultimately see Qantas' demise. The third option of the unions agreeing to immediate 40 per cent pay cuts across the board and a drastic reduction in staff entitlements also ought to be on the table.

The unions have to realise that shareholders must eventually receive a return on the funds invested in the business, otherwise there is little point in QF continuing.

Or is QF just some giant employment scheme that is expected to be subsidised for ever by the company's losses?

 

[mickeyc747]

The head in the sand unions display a particularly stupid attitude:

Thousands of Qantas jobs could go, PM warned

Qantas may employ thousands of Australians, but the recent discussion is about how the airline is not sustainable with its current operations.

A large part of that has to be its excessive cost base.

From the management and pilots down to catering staff, remuneration and benefits as a total package is arguably either a bit or a lot more than staff at other airlines receive.

The unions have a choice: either agree to massive changes (which may include over time hiring a lot more Asian-based staff, who may not be Australian citizens) and preserve some jobs for Australian citizens domiciled in this country, or protest, go on strike, have work to rules and ultimately see Qantas' demise. The third option of the unions agreeing to immediate 40 per cent pay cuts across the board and a drastic reduction in staff entitlements also ought to be on the table.

The unions have to realise that shareholders must eventually receive a return on the funds invested in the business, otherwise there is little point in QF continuing.

Or is QF just some giant employment scheme that is expected to be subsidised for ever by the company's losses?

When I worked for the Union movement that covered the majority of Qantas Staff(ASU), the Union's as a collective back then gave Qantas a wage freeze for 12 months. The employees all voted on an EBA with no increase. Whilst I agree the cost base of Qantas is high, there are offsets that Qantas use and that is Jet Connect Cabin Crew work the A380s, then the long haul division is split in 2. If the CEO was liked or at least tolerated, he could sit down with the Unions and discuss, not just shut down an airline. Geoff Dixon managed to do it and he may not have been liked but he was tolerated.

 

[MEL_Traveller]

From the management and pilots down to catering staff, remuneration and benefits as a total package is arguably either a bit or a lot more than staff at other airlines receive.

but is it though? Wages would be high at companies like Swiss. How does it compare with countries like Japan? (also with a reputation for being expensive).

It would be interesting to compare how Swiss (profitable) compares with QF in terms of wages.

Qantas bills might be high but they also have a nice plum first class cabin that can demand very high fares. If you compare a Qantas plane to HKG vs a CX one - doesn't qantas have the capacity to earn a lot more $$ on the flight??

 

[Fruitcake]

Swiss is probably the model I'd like to see - let QF declare bankruptcy if it can't survive (ie do not reward existing equityholders with government money) and then start afresh if it's deemed desirable.

 

[Keelan]

First class is a loss leader. It's yield is poor - most people who travel in first do not pay for the privilege - well certainly not the rack rates. It is mostly kept on Qantas as a carrot for CEOs etc of big corporate accounts - Dont forget that most airlines have done away with first class - something they would not have done if it was a money spinner.

but is it though? Wages would be high at companies like Swiss. How does it compare with countries like Japan? (also with a reputation for being expensive).

It would be interesting to compare how Swiss (profitable) compares with QF in terms of wages.

Qantas bills might be high but they also have a nice plum first class cabin that can demand very high fares. If you compare a Qantas plane to HKG vs a CX one - doesn't qantas have the capacity to earn a lot more $$ on the flight??