Jetstar-ing of Qantas

[tuppaware]

Not really news but speculation of the changes of Qantas in this article :
'Jetstar-ing' of Qantas accelerates under Joyce | Adele Ferguson

But a closer look at the December-half results shows that the low-cost carrier, Jetstar, returned a record profit of $143 million for the six months on revenue of $1.3 billion. The Qantas unit itself reported a profit of $165 million on four times the revenue of $5.7 billion.

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This outcome is a startling wake-up call on how big Jetstar is getting, how profitable, and how few headaches the division has in terms of unions and costs. In the previous corresponding period, Qantas reported a profit of $60 million, while Jetstar's was $121 million.

I like reading the comments at the bottom of the page, as it copies my own fear. Paying the same price for something thats half the service. Is Jetstar the only way forward for Qantas ??

 

[drron]

Same price?I have just booked domestic JASAs and the JQ alternative was 50% more points.

 

[Oneworldplus2]

This outcome is a startling wake-up call on how big Jetstar is getting, how profitable, and how few headaches the division has in terms of unions and costs. In the previous corresponding period, Qantas reported a profit of $60 million, while Jetstar's was $121 million.

Jetstar has a lot of advantages over Qantas, including fewer unions and different pay scales.

l asked Red-Roo the other day in another thread, "can there be a box to tick so that JQ flights are excluded from QF searches?" (Typically) No reply from Red-Roo.

Why, because QF make more money funneling all of us onto JQ flights. Why put an award pax on QF, when they could potentially sell it and cart you around on a cheaper option (JQ)? If anything, we will see more and more JQ options when we search for flights.

 

[oz_mark]

I like reading the comments at the bottom of the page, as it copies my own fear. Paying the same price for something thats half the service. Is Jetstar the only way forward for Qantas ??

Keep in mind that the QFF program has a lot of value to Qantas as well. The problem is that QFF, at least in the current state of play, really needs Qantas rather than Jetstar.

 

[awilcockson]

I was playing around working out if I could get the family to Hawaii on my current points balance (too much Hawaii Five-O ), and was surprised to see that only JQ flights were available! What the? No way I'm spending that amount of time with JQ (non) service levels.

I know that QF are doing a lot of jetstar-ising, but I didn't realise this extended to international routes.

 

[yohy?!]

That's right but who's going to stop them 'dialling' down the award inventory on QF international flights so that JQi is favoured for redemptions QFF already makes a bucketload of profit hopefully they don't get greedy!

 

[pshepvic]

I was playing around working out if I could get the family to Hawaii on my current points balance (too much Hawaii Five-O ), and was surprised to see that only JQ flights were available! What the? No way I'm spending that amount of time with JQ (non) service levels.

I know that QF are doing a lot of jetstar-ising, but I didn't realise this extended to international routes.

We have done JQ Starclass a couple of times to Hawaii - in the end the cost was only about $200 or so more than Qantas Economy for pretty much the same dates, so it was a no-brainer to get the better seating, reasonably good service and food, and the J class SC's and points! But if I was using points, there's no way I'd use them for JQ!

 

[JohnK]

I for one hope that JQ is not the alternative for QF to be able to survive.

How is JQ 'supposedly' that successful when most people complain about lack of service, schedules etc? In my limited experience outside of sales JQ prices are not that cheap.

Does perception win over business again?

 

[Pleb Status]

It would be interesting to see if all of the costs of operating Jetstar are being fully passed on from the QANTAS Group. Also, are the charges that Jetstar paying being proportioned on commercial terms (i.e. would QF give DJ the same deal)?

As Jetstar (JQ, not 3K) is a wholly owned subsidiary of QF, there may not be a need from a taxation and reporting point of view to separate costs fully between companies and this separation may be left up to QF management to decide. As JQ appears to be AJ's favorite at the moment, you cannot tell me that there has not been some accounting pressure to make the JQ results look as good as possible against QF mainline.

 

[sergeyvzn]

it's just a beginning - service disappears, you get 31" pitch and almost no food in economy (I recently flew to Adelaide, departure at around 10 am and all we got as "breakfast" was a tiny piece of carrot cake with a cup of bad coffee, really my mother-in-law is more generous), what's the next step??

I guess that what happens when you get a greedy Irishman to run Qantas - all he cares about is the bottom line. Shareholders are happy and this is all that matters:evil:

 

[oz_mark]

it's just a beginning - service disappears, you get 31" pitch and almost no food in economy (I recently flew to Adelaide, departure at around 10 am and all we got as "breakfast" was a tiny piece of carrot cake with a cup of bad coffee, really my mother-in-law is more generous), what's the next step??

I guess that what happens when you get a greedy Irishman to run Qantas - all he cares about is the bottom line. Shareholders are happy and this is all that matters:evil:

I don't think the lack of food at non meal times is a recent innovation. The refreshments have been like that for some time hardly the doing of the current CEO.

 

[sergeyvzn]

I don't think the lack of food at non meal times is a recent innovation. The refreshments have been like that for some time hardly the doing of the current CEO.

well, in this case Qantas should not advertise as a "full service" carrier serving "full meals", sounds like a case of misleading advertising

 

[JohnPhelan]

well, in this case Qantas should not advertise as a "full service" carrier serving "full meals", sounds like a case of misleading advertising

"Full service" does NOT mean serving a full meal at 10am, 3pm, or 10pm on domestic flights! It means a meal at normal meal times; light refreshments at others. And compare that with what you get on US domestic or intra-European services!

BTW, what the hell does the nationality of the CEO have to do with it?

 

[TonyD]

it's just a beginning - service disappears, you get 31" pitch and almost no food in economy (I recently flew to Adelaide, departure at around 10 am and all we got as "breakfast" was a tiny piece of carrot cake with a cup of bad coffee, really my mother-in-law is more generous), what's the next step??

I guess that what happens when you get a greedy Irishman to run Qantas - all he cares about is the bottom line. Shareholders are happy and this is all that matters:evil:

Not that I am a fan of Perry's pretentious food but why the heck did you expect breakie at 10 am ?

 

[ric_melb]

I think a piece of carrot cake and coffee qualifies as an appropriate meal for morning tea.

In regard to Alan Joyce I think he qualifies as an Australian, having worked here since 1996, and being an Australian citizen.

As a Director of Qantas Alan Joyce has a legal responsibility to keep shareholders' interests in mind, whilst running the company. Whilst shareholders can be greatful that the company didn't become loss making after the GFC, they haven't received a dividend since April 2009, and even that dividend was at a reduced rate.

 

[mannej]

well, in this case Qantas should not advertise as a "full service" carrier serving "full meals", sounds like a case of misleading advertising

QF is not the only full service airline offering bare basics on shorter routes



Sent from my iPhone using AFF Mobile

 

[m_ratt]

I think a piece of carrot cake and coffee qualifies as an appropriate meal for morning tea.

Agreed.

Though I think I'd struggle to find people to agree that a sandwich qualifies as an appropriate 'dinner' as received in recent times on MEL-CBR (734) flights in the early evening. (and yes, the flight was advertised as having dinner service).

 

[oz_mark]

well, in this case Qantas should not advertise as a "full service" carrier serving "full meals", sounds like a case of misleading advertising

On domestic services, Qantas has a schedule that defines which flights are breakfast, lunch and dinner*. Flights outside those times are 'refreshment' flights. In this way they match the service to the time of the day. I am not sure where you flew to Adelaide from, but from Sydney a service around 10am would be a refreshment flight.

Serving breakfast or even lunch on such a flight would seem to me to lead to a lot of wastage.


*Perth trans-con has its own thing happening. Pretty sure every flight has a meal choice on those.

 

[Moopere]

l asked Red-Roo the other day in another thread, "can there be a box to tick so that JQ flights are excluded from QF searches?"

Yes, I'd love to see that too. If I want to fly Jetstar I'll go to the Jetstar web page. If I want QF I'll go to the QF page. I've been stung before not paying enough attention and booking a JQ flight that I definitely didn't want.

I can't understand why they want to putrefy the QF flight listings by peppering JQ in there. I bet heaps of people make the same mistake as me.

 

[drron]

Yes, I'd love to see that too. If I want to fly Jetstar I'll go to the Jetstar web page. If I want QF I'll go to the QF page. I've been stung before not paying enough attention and booking a JQ flight that I definitely didn't want.

I can't understand why they want to putrefy the QF flight listings by peppering JQ in there. I bet heaps of people make the same mistake as me.

I am in 2 minds about this.
Against putting JQ sectors in-no way to select seats.
-no OLCI.
-basically impossible to change.
But the advantage-when JQ stuffs up if you are on a QF ticket QF can fix things up,JQ wont.
Just remember there are some of us that do not have the choice of a QF service out of our home port.