How would you run Qantas?

[zachary.august]

I'd sell JQ and maintain a small stake in it. I'd then start rapidly refurbishing the A330 fleet and start code-shares with CX and Dragonair to provide connections into China. I'd then make the necessary adjustments to make the HKG run daily A388 with it continuing on to PEK (would that be the only A388 on the route?). Lease a 777 from EK to operate SYD-DFW-SYD routes until 789 arrives. Firm up those options and start retiring the 744s at a rapid rate. By 2016, I'd have QF operating daily service from SYD, MEL, BNE, PER to HKG to connect to China, A388s to DXB from SYD, MEL and to LAX. 789 to DFW. Transfer a couple remaining 744s to Jetconnect and operate SCL through them. Operate JNB with remaining 744

 

[Melburnian1]

Liquidating the entire business would the rational response.

Unfortunately for Mr Joyce, his time is up as it probably also is for Mr Clifford.

That said, QF needs to urgently reduce its staff benefits.

Cut the salaries of its pilots, hostesses and flight stewards as they are clearly earning far more than is sustainable.

Cut the staff travel benefits so that only the employee gets free or discounted travel.

Reduce staff numbers further: how often have we all observed airport staff standing around in groups of three or four at the gate with little to do?

Renegotiate all overnight accommodation contracts. Why do the staff HAVE to stay in 4.5 or 5 star hotels (albeit at a discounted rate - QF would never pay the full 'rack rate').

Further cut the CEO and senior managements' salaries: perhaps by 30 per cent. Abolish bonuses.

Invest in the airline's fleet, since its fleet is perceived as elderly. Stop giving JQ the newest aircraft. Why can't QF operate 777s like so many of its (successful) competitors?

Of all the above, liquidating the whole show is the most sensible, rational decision, although the least likely.

Mr Buffett is on the ball when he suggests to avoid investing in airlines.

 

[bammac]

The correct title is Flight Attendant.

And are you seriously saying that there are FAs on $150,000 per annum?

Yes, a $150k package is earnt by the upper range FA's

 

[cmon0005]

Yes, a $150k package is earnt by the upper range FA's

That is rediculous!! The unions are the ones to blame for this... Aren't the baggage handlers on some rediculous amount like 80+k? For lifting bags..... I'm all for good and fair wages but this is too much

 

[VHOEJ]

Reduce staff travel to the employee and one nominated family person only.

Staff travel to be in economy so Q can sell or allow upgrades to better class seats.

I'll bite - all staff travel is revenue for the company. They are occupying an otherwise empty seat - if they do fill with staff who are paying a fare, the seat gets no money. Staff travel actually is a revenue stream so reducing or limiting it is ridiculous.

And they only get upgrades once all upgrades are processed. Staff never take seats ahead of commericial passengers.

 

[bammac]

That is rediculous!! The unions are the ones to blame for this... Aren't the baggage handlers on some rediculous amount like 80+k? For lifting bags..... I'm all for good and fair wages but this is too much

You have to remember 10-14 years ago, Qantas was a different beast. It seems ridiculous now, because of the state the industry is in. At the time, the conditions they agreed on, were most likely acceptable. Many FA's have considerably more than 15+ years with Qantas, so their pay conditions have increased to such a level, that they aren't prepared to stop working!

 

[tomo69]

Make the web site user friendly again and not bloated and confusing to many like it has become.

All 787's go to QF and transfer the old aircraft to JQ.

Reduce staff travel to the employee and one nominated family person only.

Staff travel to be in economy so Q can sell or allow upgrades to better class seats.

Sell off JQ and keep a 25% share in it.

Bring back SYD/SIN/LHR or go via HKG

Well said !

 

[FxTrader]

I'd sell the airline and focus on QFF.

You mean sell Qantas to Dixon? The same guy who hired Joyce? Has Joyce just given Dixon a Christmas present?

 

[dfa1981]

First and foremost, I would pare down on domestic capacity. Don't need to chase the 65% domestic market share. Retire all the 767s.

Well, I would sell off Jetstar Asia and Jetstar Japan. Drop the whole Jetstar HK idea. I will keep Jetstar (JQ).

Or without flouting the laws, do what Austrian Airlines does like having Tyrolean operate their flights. Have Jetstar crew operate all Qantas flights both domestic and international (except maybe the 747 and 380) flights.

Staff benefits will have to be reduced...

Freeze hiring.

Management pay cut.

Take back the 787s...not sure where QF has use for them on?

 

[wmetz]

Good idea lets cut someone else wages, as long as its not my wage. These days a person who just catches a bus to work will fork out over $3000 a year.

 

[Hvr]

That is rediculous!! The unions are the ones to blame for this... Aren't the baggage handlers on some rediculous amount like 80+k? For lifting bags..... I'm all for good and fair wages but this is too much

So what do you consider a fair wage? And would you work for that wage?

Why is it always unions to blame? Who were the so called managers who let this happen?

Oh and the word is 'ridiculous'. The letter E isn't in that word.

 

[sydstar]

In no particular order:

1 Ditch the 65% and focus on yield, not capacity
2 Speed up the 330 refurb - it's needed now, not in 12-18 months
3 Either ditch QF9 DXB-LHR (keep QF1 DXB-LHR) and instead go QF5 SIN-LHR or if EK doesn't like, codeshare with BA on SIN-LHR for those who want a traditional Kangaroo route
4 work with MH to cover Indonesia, India, Thailand etc and CX for North Asia/China instead of MU/CZ (and a true codeshare)
5 only run 747s where needed (JNB and SCL), and replace with 777s or 789s (long term)
6 Expand Jetconnect idea to reduce crew costs - some of my recent 380 crew were Jetconnect
7 Keep OW. Virgin can still join an alliance, If QF leaves they're out in the cold. In addition, a Lot of QFFs are in it for OW benefits
8 Realise people choose QF domestic for a reason - service, product, frequency, lounges, OW. Capitalise on this instead is focusing on VA.
9 Cut the JQ cord. Only keep a minor stake. You only need them for DPS, HKT, KIX etc.
10 Shift some 380 orders to 350 and get those Dreamibers across from JQ
11 Sack the board. Start fresh

 

[cmon0005]

So what do you consider a fair wage? And would you work for that wage?

Oh and the word is 'ridiculous'. The letter E isn't in that word.

For a baggage handler I'd say 65k max is fair.. Most police in Vic are only on around 60-65...

And for the record my phones auto complete popped up with the spelling as first option didn't even check...

 

[farstar]

For a baggage handler I'd say 65k max is fair.. Most police in Vic are only on around 60-65...

And for the record my phones auto complete popped up with the spelling as first option didn't even check...

If they are paid the same as VA/JQ/TT then that is fair. Whether that is more less than now I don't personally know.

 

[Limewood]

I'll bite - all staff travel is revenue for the company. They are occupying an otherwise empty seat - if they do fill with staff who are paying a fare, the seat gets no money. Staff travel actually is a revenue stream so reducing or limiting it is ridiculous.

And they only get upgrades once all upgrades are processed. Staff never take seats ahead of commericial passengers.

I know 6 Qantas employees 4 are FA's, they book last minute and always get J on long hauls, surely these seats could be offered as upgrades at the checkin for extra Q income or redeemed points.

 

[Economy_Gold]

Stop chasing cheap carriers and go completely ultra premium, better service, more destinations, better lounges, better onboard food - make flying pleasurable and charge accordingly.

I agree 100%. QF will never be able to compete on cost (due to legacy issues, high Australian wages compared to overseas competitors), so the only logic choice for QF is to convince customers to choose them based on outstanding service - that has to be delivered in every class of travel and, most importantly, absolutely consistently.

With this high cost / high value strategy you will loose some customers, but this is the only suitable strategy for a company with significantly higher costs than the competitors.

 

[Isochronous]

If they are paid the same as VA/JQ/TT then that is fair. Whether that is more less than now I don't personally know.

It is well known that QF baggage handlers are paid 30% more than VA. That's just not sustainable.

 

[williamsf1]

Remove Neil Perry ... Bring in Nigella .... I hear she is good at reducing lines ( the 65%) ....

 

[craven morehead]

Piss funny !

 

[airbound]

And for the record my phones auto complete popped up with the spelling as first option didn't even check...

unwords.com defines rediculous [sic] as "slightly more than ridiculous" and states that the word has its origins as an "emphasised form of ridiculous": see rediculous Definition - The Unword Dictionary

(Funnily enough, every time I try to misspell ridiculous with the 're' on a desktop, AFF's autocorrect corrects it to ridiculous!)