Is AJ making Qantas a super-fit midget?

[juddles]

Hello everyone.

I just read a few more plans for restructuring / reduction of workforce within Qantas. And the reduction also of routes, ¨rationalisation¨of aircraft, etc etc.

I certainly don´t have the knowledge and interest of many others here in Qantas, but I care deeply about our national airline. I know it is a private beast these days, and I shouldnt suffer the emotional attachment I do, but it hurts that it appears to be going a certain way.

Again, I am not an expert in running an airline. But it seems to me to be heading down a definite path.

THE ENTIRE FOCUS APPEARS TO BE ON REDUCING COSTS; NOT INCREASING REVENUE.

If they follow this path, they will produce a situation where ¨profitability¨ is only maintained as they stay just in front of the curve of reduction in services. Which is a direct track to becoming a micro ¨airline¨ that will, in it´s penultimate phase, actually cease to fly aircraft.

Am I wrong?

 

[UP4014]

Hello everyone.

I just read a few more plans for restructuring / reduction of workforce within Qantas. And the reduction also of routes, ¨rationalisation¨of aircraft, etc etc.

I certainly don´t have the knowledge and interest of many others here in Qantas, but I care deeply about our national airline. I know it is a private beast these days, and I shouldnt suffer the emotional attachment I do, but it hurts that it appears to be going a certain way.

Again, I am not an expert in running an airline. But it seems to me to be heading down a definite path.

THE ENTIRE FOCUS APPEARS TO BE ON REDUCING COSTS; NOT INCREASING REVENUE.

If they follow this path, they will produce a situation where ¨profitability¨ is only maintained as they stay just in front of the curve of reduction in services. Which is a direct track to becoming a micro ¨airline¨ that will, in it´s penultimate phase, actually cease to fly aircraft.

Am I wrong?

Can anyone name an airline that cost cut its way to profitability?

Matt

 

[a330j]

AJ will cost cut QFi to J*i. At the current rate there will be no flying kangaroo flying internationally, it will be either codeshare or J*. Seems to have been the plan for a while and is accelerating as AJs tenure wobbles.

 

[The Rok]

Can anyone name an airline that cost cut its way to profitability?

Matt

EI did.

And now it operates as a hybrid. Full Service Long Haul, matched with LCC Short Haul.

 

[JohnK]

Can anyone name an airline that cost cut its way to profitability?

Qantas could be the first?

Seriously I do not think Alan Joyce or the current board have the strategy to get Qantas out of trouble. I still think some fresh ideas could do some good before it is too late.

 

[Isochronous]

More route cuts? But AJ said all current QFi routes are profitable!

 

[harvyk]

AJ will cost cut QFi to J*i. At the current rate there will be no flying kangaroo flying internationally, it will be either codeshare or J*. Seems to have been the plan for a while and is accelerating as AJs tenure wobbles.

I am willing to bet that there will still be QFi in 5 years time, however it will only fly a handful of key routes with the rest in a jetconnect type arrangement. Much like "QANTAS" does not actually fly to NZ anymore.

 

[JohnPhelan]

Can anyone name an airline that cost cut its way to profitability?

Matt

American, when it was in Chapter 11. The big saving was in cutting the number of jobs, and reducing the salaries of those who remained.

 

[JohnPhelan]

At the current rate there will be no flying kangaroo flying internationally, it will be either codeshare or J*.

Rubbish. QF rakes in money on its various American services.

 

[UP4014]

EI did.

And now it operates as a hybrid. Full Service Long Haul, matched with LCC Short Haul.

The regional EI that is 25% Govt owned and 25% Ryanair owned? In the previous 10 years they had 3 years of losses and only 2 of those years consecutive.

I think the cost cutting with EI was more to do with setting it up for a full takeover.

Matt

 

[codash1099]

Midget? Yes

Super fit? Not a chance.

 

[farstar]

More route cuts? But AJ said all current QFi routes are profitable!

I flew QF 64 yesterday and business class was less than 50% full and the crew said economy was worse and they said loads similar since 1st June.I think post cancelling the codeshare not profitable now.

 

[peterk]

The only way for Qantas to get out of this nosedive is for AJ and the board to resign

You may remember just two and a half years’ ago AJ was saying Qantas International was going very well & it was making a huge profit

Six months + later things changed the Qantas Group is effectively shifting costs from one part of the airline from Jetstar Asia in particular
onto Qantas so that Qantas International looks less healthy than it actually is I feel

 

[Himeno]

American, when it was in Chapter 11. The big saving was in cutting the number of jobs, and reducing the salaries of those who remained.

AA did not cut its way to profitability. Just about the only thing it cut was jobs and some old aircraft - old aircraft which were replaced by new ones.
AA ordered over 500 new aircraft while it was in Chapter 11, arranged the needed financing for said aircraft, and increased services.

QF was one of the only airlines in the world that made a profit in 2008/2009. When there was talk of QF merging with BA, and later MH, they walked away from the deals because QF was doing better then the potential partner and the other side wouldn't agree to reflect that in the make up of the merged carrier.

 

[harvyk]

The only way for Qantas to get out of this nosedive is for AJ and the board to resign

You may remember just two and a half years’ ago AJ was saying Qantas International was going very well & it was making a huge profit

Six months + later things changed the Qantas Group is effectively shifting costs from one part of the airline from Jetstar Asia in particular
onto Qantas so that Qantas International looks less healthy than it actually is I feel

IIRC AJ was saying QF was profitable but QFi was loss making. I've never heard AJ say anything positive about QFi that would really make me believe he believes in QFi.

 

[Paddy55]

IIRC AJ was saying QF was profitable but QFi was loss making. I've never heard AJ say anything positive about QFi that would really make me believe he believes in QFi.

Agree 100%... I just don't think he knows how to make QFi sustainable for the future

 

[Shan Man]

Much like "QANTAS" does not actually fly to NZ anymore.

I beg to differ, I flew QF to NZ Recently. AUS Crew on an AUS Aircraft MEL-AKL. The crew then over nighted in the same hotel as me!

 

[Sprucegoose]

I flew QF 64 yesterday and business class was less than 50% full and the crew said economy was worse and they said loads similar since 1st June.I think post cancelling the codeshare not profitable now.

The mining boom kept that route profitable not the safari industry. Make mining unattractive we all suffer. Of course it also ha it's own economic cycle but you don't want to exacerbate matters

 

[Sprucegoose]

I beg to differ, I flew QF to NZ Recently. AUS Crew on an AUS Aircraft MEL-AKL. The crew then over nighted in the same hotel as me!

You're right but it is greatly reduced now. What hotel incidentally?

 

[drron]

Interesting idea.
Would need a new Logo.
I suggest grumpy on the tail.