Is Alan Joyce doing a good job?

[froggerADL]

No.

<waste of space>

I agree. AJ is a waste of space!

 

[amaroo]

LOL why do you think JB is staining his pants every time he reads about Gov assistance?

everything he has tried has been an expensive failure

JB hasn't been that bad

 

[Must...Fly!]

I don't know if I'd do much different, so given that, I say he is doing fine in the circumstances.

 

[drron]

Quite frankly I doubt anyone else could have done very much better as CEO of QF.
Most of the problems have their origins way before he became CEO in late 2008.
One of it's problems is it's fleet.The A380 is just not appropriate for a small international airline like QF.As many have said on here before the 777 would have been a better choice.The orders for the A380 were placed well before AJ's time.they were confirmed publicly in December 2000.
Airbus to build A380 superjumbo - Dec. 19, 2000
This was even before Geoff Dixon was CEO.The decision was taken on James Strong's watch.

Some critiscise him for the formation of Jetstar.Sure he was put in charge but the CEO was Geoff Dixon.

Then the problems with unions and staff costs.This goes back to the early 90s.The staff then had been used to government ownership so staffing levels and costs were high.The baggage handlers especially have been engaging in industrial action all this century.Unfair to put all the blame on AJ.

So while I don't think he has done a great job I am not sure anyone else could have done a much better job.

 

[NFF]

Did he inherit a sinking ship ?

 

[VHOEJ]

I am with most people, I think Joyce should resign.

However, the board are the ones who should go first. They make the big decisions - the CEO is merely a figurehead for the company. The board approves/rejects all major decisions including the strategy. They pull the strings, the CEO doesn't.

 

[DaveB]

Somewhat amazing that QF management is blaming inefficiencies built up by years of prior government ownership and is now for the first time going to attempt to address this issue by proposing a wage freeze despite increases already agreed to a part of current EA's. Good luck in probably the most toxic industrial climate seen in Australia the past 20 years not involving wharves and building sites.
Everything management has undertaken to date has simply been reducing the size of the pie by outsourcing, closures and redundancies which any accountant/manager can easily do.

 

[amaroo]

As Joyce said yesterday - the board and the shareholders have absolute autonomy to decide who leads the company.

He is obviously close to the major shareholders and they appear to be backing him all the way.....

 

[winfred]

I am with most people, I think Joyce should resign.

However, the board are the ones who should go first. They make the big decisions - the CEO is merely a figurehead for the company. The board approves/rejects all major decisions including the strategy. They pull the strings, the CEO doesn't.

I think you got it wrong. The CEO runs the business not the board. If you look at the compositions of most large listed companies's board you will find out that they don't have the skills to run the business or put strategies together. The board members are appointed by shareholders and look after the interest of the shareholders. The board appointed the CEO and should sack him if they do not believe he is doing a good job.

 

[Mwenenzi]

Reason why AJ (and the board) should be sacked:
- Poor aircraft choices
- inability to deal with union effectively.

Wouldn't ping those two fully on AJ ...

But Borghetti was around and involved at high level for some years with QF mainline.

Hedging against fuel price either works or does not depending on the price movements over time.

 

[amaroo]

But Borghetti was around and involved at high level for some years with QF mainline.

Ahh, come on - he was only there for 36 yearsssss

 

[winfred]

But Borghetti was around and involved at high level for some years with QF mainline.

Hedging against fuel price either works or does not depending on the price movements over time.

He has been ceo for 6 years. If he can change aircraft mix now he could have done it years ago and I believe he could if he wanted to.

Hedging is not a gamble. It always works. You comit to buying fuel in the future based on a price set now.

 

[mannej]

Hedging is not a gamble. It always works. You comit to buying fuel in the future based on a price set now.

Sorry but you must have a short memory, it is a gamble and doesn't always pay off...
http://www.marketwatch.com/story/cathay-pacific-fuel-hedge-losses-nearly-1-billion

 

[drron]

He has been ceo for 6 years. If he can change aircraft mix now he could have done it years ago and I believe he could if he wanted to.

Hedging is not a gamble. It always works. You comit to buying fuel in the future based on a price set now.

The first A380 was delivered to QF a month before he became CEO.Not so easy to change the aircraft mix at that point.
And companies certainly can lose when hedging.
Plus only CEO for 5 years.

 

[winfred]

The first A380 was delivered to QF a month before he became CEO.Not so easy to change the aircraft mix at that point.
And companies certainly can lose when hedging.
Plus only CEO for 5 years.

He can defer delivery of some A380 like what he is doing now.

Hedging reduces your risk. If I commit to buying USD in 3 months at 0.86 because I need to pay people in USD in 3 months, I do not lose money if A$ is buying $1.00 USD, I just make less money. Hedging is not about predicting movements of commodoties you are buying or selling but to provide some certainty.

 

[drron]

He can defer delivery of some A380 like what he is doing now.

Hedging reduces your risk. If I commit to buying USD in 3 months at 0.86 because I need to pay people in USD in 3 months, I do not lose money if A$ is buying $1.00 USD, I just make less money. Hedging is not about predicting movements of commodoties you are buying or selling but to provide some certainty.

Read the link provided by mannej.

 

[winfred]

Read the link provided by mannej.

I did. Note the words mark to market and unrealised. Read my previous post again and google the word "hedge".

 

[oz_mark]

Plus only CEO for 5 years.

Only? How long does he have to be there, before his fanbase stops blaming his predecessors?

 

[winfred]

We can probably divide the QF business up into:

- QF domestic
- QF international
- Jetstar

My view is that decline of international business is mostly beyond AJ's control but poor performance of both domestic and Jetstar are mostly his.

 

[winfred]

Only? How long does he have to be there, before his fanbase stops blaming his predecessors?

5 years is a long time but airlines are hard business to run and takes a long time to turnaround. Very few airlines are profitable in the long run.

Who said that the easiest way to be a millionaire is to start off as a billionaire and buy an airline?