Joyce: Qantas perth had to go

[SpudOz]

Dear Mr Joyce

So QFI is unprofitable from Perth. I was on QF78 yesterday and it was chockers.
Actually Mr Joyce you are unprofitable, you should go. I hate what you have done to Qantas. Shame on you!

 

[marki]

Dear Mr Joyce

So QFI is unprofitable from Perth. I was on QF78 yesterday and it was chockers.
Actually Mr Joyce you are unprofitable, you should go. I hate what you have done to Qantas. Shame on you!

It's a strong statement but it is not AJ's fault entirely and the story has more complications than that.
But they should try much harder than they are now.


Sent from my iPad using AustFreqFly mobile app

 

[Bundy Bear]

If Qantas were to have pulled out of Perth - Singapore then the option to have a QF code share on the PER-SIN should have been put in place.

But then what do any of us know.

 

[Birdblack]

Why can't Qantas keep the route and just put a 737 (new, with setback IFE) on it?

 

[docjames]

Dear Mr Joyce

So QFI is unprofitable from Perth. I was on QF78 yesterday and it was chockers.
Actually Mr Joyce you are unprofitable, you should go. I hate what you have done to Qantas. Shame on you!

Full doesn't mean profitable.

 

[Sethor]

I just want to know how much of the $252 million QFi loss was from QF77/78. I would have thought PER would have generated more revenue per passenger than East coast cities as fares to SIN/LHR/FRA etc are pretty much same price but are 2-3hrs shorter (less fuel/less staff & equipment hours).

 

[Isochronous]

If I were BA I would send a service SIN-PER.

 

[UP4014]

I just want to know how much of the $252 million QFi loss was from QF77/78. I would have thought PER would have generated more revenue per passenger than East coast cities as fares to SIN/LHR/FRA etc are pretty much same price but are 2-3hrs shorter (less fuel/less staff & equipment hours).

Good point, however it's not revenue per passenger but revenue per seat, a subtle difference.

Matt

 

[ReLoad]

A few weeks ago I tried to get a J seat on the PER/SIN flight and couldn't get on, even after a significant wait list push. I guess the plane was full of nostalgia buffs taking one more flight

 

[Mwenenzi]

I just want to know how much of the $252 million QFi loss was from QF77/78. I would have thought PER would have generated more revenue per passenger than East coast cities as fares to SIN/LHR/FRA etc are pretty much same price but are 2-3hrs shorter (less fuel/less staff & equipment hours).

Would you please publish your detailed financial analysis, including all fixed and variable costs and load factor/revenue per seat.

 

[JohnK]

Why can't Qantas keep the route and just put a 737 (new, with setback IFE) on it?

Why couldn't Qantas keep the PER-SIN service going 4 days/week with an A330 and the other 3 days/week ADL-SIN service?

Why not try something different before giving up?

 

[missafternoondelight]

I worked for a transport company in years, and if we wanted something to work, we would increase frequency, and improve connections. I believe it was AJ's strategy forPER-HKG and PER-SIN to fail from the moment he reduced the 3 x daily SIN-PER to one. Anyone with even one iota of transport knowledge or experience knows that if you reduce frequency, you do not get the same amount of passengers crammed onto a smaller number of fleet. Eg. 3 x loads of 10 does not equal 1 x load of 30. You will always find it naturally decreases patronage, as travelers, especially business travelers are creatures of habit, and if you do not have the frequency and the flexibility to be their carrier of choice in the most instances (eg. when going for a meeting in the morning or a meeting at night, etc., connecting with other carriers well) they will leave you and go to an airline who does. It really is the best way to reduce total patronage. But it depends on what your KPIs are. If you are measuring yourself based on passengers per kilometre, reducing the number of trips might help increase that figure. However in terms of overall long term profit and passenger loyalty, it is a recipe for disaster.
Joyce needs to go. Desperately. There are a lot of people who love this airline and if there is even a shadow of a chance it might survive, we need to act now. C'mon Qantas decision makers! A lot of staff have also anonymously commented that they are desperate to see a change in leadership before there is nothing left to save.

 

[bobe]

Why couldn't Qantas keep the PER-SIN service going 4 days/week with an A330 and the other 3 days/week ADL-SIN service?

Why not try something different before giving up?

What a great option, I think that would work.

 

[Paddy55]

Full doesn't mean profitable.

... and whose fault is that? I mean QF have some control over the prices they set and the costs they incur don't they?

 

[nlagalle]

... and whose fault is that? I mean QF have some control over the prices they set and the costs they incur don't they?

It's a known fact that they have a higher base operating cost than the asian carriers. high wages too. they can't really control those at the moment can they?

 

[Paddy55]

It's a known fact that they have a higher base operating cost than the asian carriers. high wages too. they can't really control those at the moment can they?

It is popularly thought they control some of them... those involving JetStar costs... quite a bit!

 

[asg29e]

A few weeks ago I tried to get a J seat on the PER/SIN flight and couldn't get on, even after a significant wait list push. I guess the plane was full of nostalgia buffs taking one more flight

Or those nasty status seeking JASA freeloaders...

 

[SpudOz]

Full doesn't mean profitable.

It could be profitable. Ditching 3 daily services down to 1 that doesn't connect well with onward flights is part of the problem. And then there were none.

Of course Eastern States based pax don't give a rat's about West Australians.

 

[harvyk]

... and whose fault is that? I mean QF have some control over the prices they set and the costs they incur don't they?

Well yes and no, I mean I could attempt to sell you a ream of A4 paper for $2, or I could attempt to sell you that same ream for $2000. Whilst I set the price, it doesn't mean there are customers willing to pay it.
Actually getting pricing right is about the hardest part of running a business (speaking from experience). Set it too high, customers no longer see the value (note that word) in it compared to your competition, set it too low and whilst you'd have every man and his dog on your service, if your not covering the basic costs then despite having loads of sales, you still won't be making money.


I can understand why QF might want to pull PER-SIN. It's a flight which as far as QF is concerned terminates in SIN. The vast majority of people who fly on that flight will live in PER (or WA), so there isn't even a feeder advantage on this end, unlike say SYD, which can have realistic feeders from MEL / BNE / ADL. So QF int was left with an option, keep a flight operating in isolation, where they no longer have direct connections to Europe, or scrap that flight. For all we know, 77/78 has been making a loss for years, but QF knew that the loss was offset by 77/78's role in feeding SIN-LHR services, and thus it kept the flight going as a feeder. But with the termination of SIN-LHR there is no longer a reason to keep 77/78 operating. Of course one could always ask why they didn't start a PER-DXB service in it's place.

Of course I support the calls for AJ to go...

 

[AustraliaPoochie]

Think about it this way, by him or who ever authorising the total cut off of QFi from PER to SIN and ADL to SIN, is now pushing pax to go with SQ or MH, MH going PER to KUL to SIN and vv. And ADL being SQ to SIN, 2x daily some days.
If I wanted to go to SIN, I would not go backtracking ADL to MEL to get an QFi or EK to get to SIN.
Its their own fault.