How would you run Qantas?

[Warks]

All 3 of those manufacture large volumes of cars outside of Germany in countries such as China, USA, India and South Africa.

Just vaguely on topic here I saw a Bosch dishwasher the other day for one price and the exact same model across from it for $200 more. The cheaper one was made in Turkey and the dearer one in Germany. Rather odd marketing but I wonder how many people would buy the more expensive one (probably built by Turkish workers in Germany)?

 

[dajop]

So Qantas how about inspiring your very loyal customer base, that may just save you.

I wonder if QF have actually become to dependent on it's "loyal" customer base. What about developing new customer bases? We all know that EK and other carriers pump significant sums of money into marketing in the key countries they operate (Collingwood, Melbourne Cup as two examples) to promote the brand. I have been in Singapore for almost 5 years now since moving from Melbourne, and see very little in the way of Qantas marketing, which is strange given that alongside perhaps LA, this is their biggest port outside Australia (and LAX probably needs less marketing due to the strong AA codeshare - with no competing AA flights). Here QF is not considered a "premium" carrier and I would estimate it's brand sits alongside (or below) Jetstar in the marketplace. No CC's with FF linkages, no real marketing to speak of (other than tacking on to tourism commercials aiming to generate interest in SIN, which probably benefit SQ just as much), and no leverage of their investment in 3K other than to the Australian market.

It's not the answer to QF's woes, but can't help but think QF's seemingly singular focus on the Australian market (or perhaps at a stretch the anglo saxon market if US & UK are included), is a contributing factor to QFi's woes. I think these days, in the intensely competive market, they need to be considered a carrier of choice at both ends of their flight routes, not just the Australian end.

 

[Fruitcake]

Just vaguely on topic here I saw a Bosch dishwasher the other day for one price and the exact same model across from it for $200 more. The cheaper one was made in Turkey and the dearer one in Germany. Rather odd marketing but I wonder how many people would buy the more expensive one (probably built by Turkish workers in Germany)?

The Turkish built models use cheaper materials - for example, the base of the washing compartment is plastic whilst whilst the German built models have a stainless steel base. There may be other differences too.

 

[drewbles]

So in your version of the airline, Platinum frequent flyers can sit in the front rows of economy watching Qantas staff fly business and get the premium service. If ever there is an example of how to piss off your most lucrative set of customers, this is it. And you do it just as the opposition is competing fiercely for corporates. You will NEVER see a Virgin staff member upgraded to business.

I've seen it happen. I know it happens. It's not for uniformed staff, but i've seen it happen.

 

[LONRHO]

One thing we could all do is to place about $100.00 each on to the new qantas cash card and then forget about it.This should raise about $400 million or $100.00 muliplied by the number of people with the card. I am assuming 4 million people have the card. Great capital raising idea. Give all who do this say 80000 frequent flyer points to say thanks.

run ads that promote the idea of " can you afford anything that is cheap " so we upgrade the room on board and compare roomy seats with sardine type ones for example.

The airline industry is one of the only businesses that employ the notion of "Down selling" to customers. Naturally, any business who does this will go broke. So we need to upsell the product.

There seems to be a problem in an industry who employs staff only to find out that after about 6 months 60% per cent of them leave. Yet,these people were the "perfect people " to employ!!!!!! so there seems to be a problem with this method. No point asking these people why they want to work for the airline. .Employ people with ideas on what they would do to improve things at the entry level positions. Never employ any one who agrees with you. One needs people to tell you all the alternatives.

 

[Hvr]

If 60% of people are leaving after six months there this a huge problem with how the job is being advertised. And then how recruitment is done. Of course the job may not be very attractive to begin with and people use it to get a job and then move on to the job.

Of course factors such as job design and management also affect retention of staff.

 

[LONRHO]

FURTHER TO THE ABOVE.
We need to reward staff for going the extra yard.For example,Staff earn a basic wage that can be supplemented:"by not using one's sick leave one earns extra money."Staff who do not take days off in a month go into the draw to win a $250.00 voucher at say myers.

staff earning over say $250,000.00 per year need to take a pay cut.Set the example and see how the other staff react. Does it really matter if a person on $2 million per year takes a 30% pay cut. really: would they really miss that??? Great tax saving.

 

[irv]

Liquidating the entire business would the rational response.


So you want Qantas to cease to exist?

 

[drivatruk]

Everyone seems to be going over old ground. Cutting staff travel is only going to cut staff moral. If they are flying on a seat that going to be empty then good luck to them. Wages in this country are way to high for any company to compete on a global scale and in time need to realign with similar economies around the world.


i don't think qantas has the money to refit a330s at the moment.

I think QANTAS should invest with the federal gov and build a high speed rail service (qantas rail) between Sydney and Melbourne. Negates the need to buy some aircraft and frees up some of the slots at Sydney airport to be used on other routes. Mel-Syd is i think the 3rd most used air route in the world but i could be wrong.
The rail could be fitted with Business class and economy seating and points earned and spent similar to flying.

I'm in the eastern states i don't really mind going through Sydney. I think Perth or Darwin should be 2nd international hub for the western states on route to Asia.

I find the staff on Qantas to be awesome. I can say I've never had coughpy service from anyone. I tried Virgin and the same thing. Both great. I choose Qantas for the business product because Virgins feels cheap.

The lounges they both provide here run rings around any of the ones I've used n Europe and USA.

 

[drewbles]

FURTHER TO THE ABOVE.
We need to reward staff for going the extra yard.For example,Staff earn a basic wage that can be supplemented:"by not using one's sick leave one earns extra money."Staff who do not take days off in a month go into the draw to win a $250.00 voucher at say myers.

staff earning over say $250,000.00 per year need to take a pay cut.Set the example and see how the other staff react. Does it really matter if a person on $2 million per year takes a 30% pay cut. really: would they really miss that??? Great tax saving.

Encouraging people to work when sick is a bad idea and irresponsible IMHO. Sick leave should be used when you're, well, sick.

I believe it would also border on illegal, as sick leave is a requirement of any employer to provide a minimum number per year to a paid full time employee (and as the are non-coughulative, they hold no financial value for the employee other than being used when sick).

 

[Hvr]

FURTHER TO THE ABOVE.
We need to reward staff for going the extra yard.For example,Staff earn a basic wage that can be supplemented:"by not using one's sick leave one earns extra money."Staff who do not take days off in a month go into the draw to win a $250.00 voucher at say myers.
<snip>.

I actually disagree with that suggestion.

Sick staff presenting at work infect others, they give the company a poor image and are rarely fully productive.

Basically they drag everybody else down and cause problems.

However, people who demonstrate initiative, handle hard clients/customers, who try even if they fail need to be rewarded.

Learn from the failure and continue trying, this is how a company succeeds. And managers who are smart enough to support their staff during this time are invaluable.

I once had a staff member who came to me with a thought on how to improve a process, I helped her refine it and then present it to my manager. It was her idea and she was allowed to own it.

We both got a lot of kudos for that. Sadly managers like I had then are few and far between. I've seen too many take a good idea as their own and deny anybody else was involved.

 

[medhead]

Wow. That's a new one. The unions kill ansett. All relationships are a 2 way street. Management need to decide the type of relationship they wish to have with the unions and lead by example. Sniping at unions in the media suggests current management are happy to be confrontational. Maybe all these new CEOs could fix that relationship by changing past practices.

 

[MEL_Traveller]

FURTHER TO THE ABOVE.
We need to reward staff for going the extra yard.For example,Staff earn a basic wage that can be supplemented:"by not using one's sick leave one earns extra money."Staff who do not take days off in a month go into the draw to win a $250.00 voucher at say myers.

why pay them MORE to do a job they should already be doing well?

Perhaps something along the lines of 'two substantiated complaints against your service and you lose $1000 in pay' might work better?

 

[Cool Cat Phil]

Tell me about it!

This is especially the case for those managers obsessed with their own career path ahead of everyone else in the Team.

And whilst im at it, let me define the word Team in simple context:

T = Together
E = Everyone
A = Achieves
M =More.

 

[trippin_the_rift]

why pay them MORE to do a job they should already be doing well?

Perhaps something along the lines of 'two substantiated complaints against your service and you lose $1000 in pay' might work better?

The big problem is that exceptional staff are not driven by money. They do it because they're passionate, want satisfaction of seeing a smile, recognition or something else that can't be bought.

 

[ozziedave]

All that I've read here is more cost cutting garb I hate the unions and "if we pay them 50 cents an hour we'll make some money" oh and take all the benefits away as well

I work in another "service industry" that everyone loves to hate and I will tell you now

**** In Australia everybody wants more for less and are incredulous when they don't get it.*****

We pay less for travel now than in the 80's - when it was a complete rip off I know but that was 30 years ago.

Someone in an early post spoke of not being able to get discount on a fare to the US. Almost guaranteed the sales agent couldn't offer discount due to company policy. But the customer views it as arrogant service.

From what I've seen Asian natives (who live in Asia) will not fly Qantas to Australia. SQ fly about 9 times a week ADL - SIN always full planes lots of students. The last time I flew Qantas to SIN 1/3 full nearly all Caucasians.

What I'd do to if I managed QANTAS

1. Move all new planes to Qantas domestic routes and routes into Asia
2. Buy 30% of Air Asia on the Malaysian stock exchange preferably when $A is high and Ringgit is low
3. Air Asia takes over Jetstar as a part of the deal
4. Qantas launches an Asian hub where it flys to Europe/Middle East & Africa and Australia and market the cough* out of the airline in that area
5. Increase flights from all Australian capitals to the Asian hub and transfers to Europe

You want to fly premium you fly Qantas if you want discount you fly Air Asia

Qantas management don't have to manage the discount airline but have the ability to sell the discount product.
Planes at the Asian hub have the benefit of cheaper labor costs.
Plan for a renewal of staff by redeploying tired front of house staff to new positions or out of the business.
Make the procedures of the airline more customer centric and flexible

The mismanagement of Joyce has been epic in every sense and I reckon I couldn't do worse but I'd hate to cost this plan.

 

[marki]

The big problem is that exceptional staff are not driven by money. They do it because they're passionate, want satisfaction of seeing a smile, recognition or something else that can't be bought.

There are precious few such people.

 

[dajop]

The big problem is that exceptional staff are not driven by money. They do it because they're passionate, want satisfaction of seeing a smile, recognition or something else that can't be bought.

I'd agree provided base expectations of money are taken care - what drives staff to be exceptional is not extra money/bonuses etc, or threat of loss of money. But on the flipside, I think most "exceptional" staff would decide not to be so exceptional if their pay was halved by the company!

One thing I think, in the Qantas, indeed Australian context, that drives staff to be "unexceptional" is peer pressure, or perhaps a manifestation of the "tall poppy" syndrome or avoiding wanting to be the "teachers pet" so to speak. In the past I spent a lot of time travelling in 36 seat Dash 8's - with only a single FA, and I cannot recall anything other exemplary service on these flights. Nobody to gossip with, no concerns about "showing up" colleagues, so free to serve customers as seen fit. Now some of that may be due to QF Link management, but I can't help but think absence of peers is also a factor.

 

[Janflyer]

As with any business that is going under, you need to focus on:
1. Reducing costs, but without damaging service.
2. Finding new ways to increase revenue.

With that in mind, I would:

1. Direct some of the newer planes to QF rather than JQ.
2. Reconfigure the seating arrangements of the existing planes (cheaper than buying new ones) to include:
(a) More business seating (as these are the seats with the higher margin and these sections of the plane always seem to be full).
(b) Offering Premium economy on more flights, particularly overnight international flights.
(c) Offering a radically better flying experience in economy than any other airline - e.g. more leg room and bigger seats. This way, you could continue to charge the less-competitive prices as currently done, but offer more for the money with little additional cost.
3. Drop the price of the business class fares to be at least a bit more competitive (and with more seats, you'll be able to fill them with paying customers and enable your loyal FFs to upgrade more often).
4. Train your staff on exceptional customer service.
5. Focus on improving the amount of cargo that you transport - only works with regular, daily, flights - as cargo is also a high margin area as I understand it.
6. Focus on growth areas (e.g. Asia).
7. Cut down on wages by basing more international flight crews outside of Australia so that you don't have to pay them the exorbitant union-demanded Australian wages (but whilst still paying a fair wage, of course).
8. Develop an Asian hub for international flights to and from Australia, Asia and Europe.

The things NOT to do include:

1. Making it more difficult for your loyal customers to stay with you by:
(a) "updating" the website so that it is clunky and difficult to use, with less features (e.g. mASA) than it had before.
(b) taking away flight options (e.g. getting from PER to HKG these days on QF is a nightmare).
(c) making it more difficult for your loyal FFs to remain loyal by taking away the perks that come along with being loyal.
2. Saying that you offer superior services and then not providing.

 

[Fruitcake]

There are precious few such people.

But QF seems to have found them - their lowest paid cabin crews (JetConnect and A380) seem to consistently get much better reviews on AFF than the much higher paid crews on other international services.