Qantas Results

[jetlagger]

There was an interesting story on the ABC's 7.30 Report regarding a lack of transparency in Qantas accounting practices.

Essentialy it highlighted the strong concern among current employees and former executives that the current management is shifting as many costs as it can away from low cost carrier Jetstar and on to the books of Qantas. The aim is to keep Jetstar looking as profitable as it possibly can. The aviation unions argue these increased costs are then used as justification for cutting staff numbers and conditions at Qantas.

Tony Webber, a former Qantas Chief Economist went on record that in his opinion Jetstar makes use of many services that they don't actually pay for, such as the legal department, corporate communications, investor relations and other back office overheads which are funded by Qantas. There were further allegations that other costs attrubitable to the Jetstar expansion overseas were booked against the Qantas International business to mask the true costs of Jetstar.

The full report and transcript is available on the ABC website
.

IMO.. suspect a cover up here.. I have never believed that QFi could/would be operating at any such loss or part thereof, partly inclusive of the very reasons stated.. really think there is a ulterior motive in this 'continual game of negativity reporting & announcements"

 

[munitalP]

I honestly think there are far better things in the world to get heart burn over than Alan Joyce. Sure, some of us have QF shares that have taken a dive, but we all know the risks when playing the share market or at least we should, I am 100% sure none of us have been turned away from the plane with a note in hand "flight cancelled because Alan didn't pay the fuel bill", and I am equally sure that none of us have found the service on board less professional or lessor quality since Alan has taken the helm!

Sure the airline has enhanced many things, one cracker less for instance, but seriously, do these things really matter in the scheme of things? The bus gets from A to B in caring levels of style, a frequent flyer programme that is the final bastion of class segregation (thanks whoever planted that seed in my mind) and a reasonably modern fleet of AC to boot and a pretty darn fine safety record even including recent mishaps where all survived!

The board of directors of QF, sure we may all think they are weaklings, useless twits etc, but step forward if you have ever been called up and offered that guernsey? I bet we won't be seeing too many stepping forward because as much as we think we may be able to do better, we can't, and if we could, we would be Australian business leaders on company boards and far too busy sipping champers in some F or CL lounge somewhere than to be having a whine ang a moan on an Internet bulletin board.

I find it hard to understand why some people continue to slag what we can't and don't have the ability to change. Qantas is a business and how the business operates is dictated by the board of directors and the company charter. If you as a share holder do not like the operation and how it works, you have 2 real options available to you, sell up and remove you interest or 2, vote the board off or vieto board decisions, simple.

No one in a private life is forced to fly QF, so vote with your feet, go to the opposition and enjoy yourself, let the QF board and CEO take whatever steps are needed to right the airline, but for Gods sake, please do it quietly..

[takes a bow, gets down from soap box and leaves the room]

 

[medhead]

I have. Right now it feels like I'm dating two women and I'm trying to make sure each one doesn't know I'm sleeping with the other one. :shock:

Experience has taught me you're better off being upfront in this type of situation. Treat 'em mean to keep 'em kean.


Sent from the Throne

 

[eastwest101]

Tony Webber, a former Qantas Chief Economist went on record that in his opinion Jetstar makes use of many services that they don't actually pay for, such as the legal department, corporate communications, investor relations and other back office overheads which are funded by Qantas. There were further allegations that other costs attrubitable to the Jetstar expansion overseas were booked against the Qantas International business to mask the true costs of Jetstar.

The full report and transcript is available on the ABC website

.

I also heard Tony Webber on ABC Radio PM yesterday - he also had some unkind things to say about the Fuel Hedging strategy vis-a-vis the strength of the AUD$, which would also be on the ABC Radio PM website I am sure.

 

[freepyjamas]

I find it hard to understand why some people continue to slag what we can't and don't have the ability to change.

Personally, I find it easy to understand why we do this.

I'm more than happy to voice an opinion on how terribly my sporting teams are travelling, despite not having the skills to manage a sporting team. I'm also prepared to rubbish what I think is a bad movie, a lousy restaurant, a terrible sculpture or a poorly-designed building despite having no formal qualifications in filmaking, the culinary arts, fine arts or architecture. I'm also happy to voice opinions on various politicians, too.

People will always voice an opinion on the things they take a strong interest in. The people here take a strong interest in the Qantas brand, the Qantas experience and Qantas as an organisation. So it's only logical that we'll be more than happy to tee-off on the QF board and AJ.

And sometimes (sometimes) the inexpert outsider can see things that the experts inside the bubble can't.

 

[markis10]

Mr Pascoe has some interesting thoughts:

Something isn’t quite adding up in the Qantas story as it’s being officially told – unless the CEO and board are quietly pursuing a strategy of cleaning the business for potential sale with dismemberment either before or after the event.Yes, there are major obstacles in the form of legislated ownership restrictions, but they can be circumvented, as demonstrated by the Allco/TPG/Macquarie bid in 2006. (Remember that that would-have-been disaster was only stopped by one hedge fund manager’s greedy miscalculation.)

Read more: Qantas 787 Catch 22
​

 

[SeatBackForward]

I just got another whiff of a divestment. Thats the second one in a week (Jetstar and Air France/KLM to code-share out of OOL)

 

[simongr]

Due diligence of any acquirer of JQ might reveal all of the dodgy internal transfer pricing though

 

[smit0847]

Mr Pascoe has some interesting thoughts:

Something isn’t quite adding up in the Qantas story as it’s being officially told – unless the CEO and board are quietly pursuing a strategy of cleaning the business for potential sale with dismemberment either before or after the event.Yes, there are major obstacles in the form of legislated ownership restrictions, but they can be circumvented, as demonstrated by the Allco/TPG/Macquarie bid in 2006. (Remember that that would-have-been disaster was only stopped by one hedge fund manager’s greedy miscalculation.)

Read more: Qantas 787 Catch 22
​

One of the interesting comments on this article is that the Qantas board always blame everything else but themselves for Qantas's failings - the unions, their competitors, fuel prices, their staff etc. They have never once admitted they got anything wrong - they're perfect but their business loses money because of everyone else. Maybe admitting their mistakes that would be a good start in rebuilding the trust of the Australian public.

So much of Qantas's business is based on the long-time 'blind faith' loyalty of their customers who are so used to flying Qantas that they never think to see what the competitors are doing. This site is filled with stories of how surprised and impressed they have been when they have switched to competitors (DJ, SQ, EK, CX etc) and not looked back and I'm constantly amused by how people seem to find that competitor. Qantas seem to be ignoring their long-time loyal customers (WP1 anyone?) and assuming this blind faith will continue while they make 'enhancement' after 'enhancement' to save money. It may continue for a few more years but once the FF program loses enough members that it fails to make money, the cards will tumble down. I can easily see QFi only being A380 SIN, LHR and LAX out of MEL and SYD within 5 years.

 

[The Rok]

One of the interesting comments on this article is that the Qantas board always blame everything else but themselves for Qantas's failings - the unions, their competitors, fuel prices, their staff etc. They have never once admitted they got anything wrong - they're perfect but their business loses money because of everyone else. Maybe admitting their mistakes that would be a good start in rebuilding the trust of the Australian public.

So much of Qantas's business is based on the long-time 'blind faith' loyalty of their customers who are so used to flying Qantas that they never think to see what the competitors are doing. This site is filled with stories of how surprised and impressed they have been when they have switched to competitors (DJ, SQ, EK, CX etc) and not looked back and I'm constantly amused by how people seem to find that competitor. Qantas seem to be ignoring their long-time loyal customers (WP1 anyone?) and assuming this blind faith will continue while they make 'enhancement' after 'enhancement' to save money. It may continue for a few more years but once the FF program loses enough members that it fails to make money, the cards will tumble down. I can easily see QFi only being A380 SIN, LHR and LAX out of MEL and SYD within 5 years.

Personally I think you can add DBX to that list from every major Australian city. I think you will see a full on assault by QF on international. If it works for them and EK then they may very well take those dreamliners down the track for a bigger schedule into DBX!

Ultimately I think EK will buy into QF. Where there is a will there is a way!

 

[SeatBackForward]

Personally I think you can add DBX to that list from every major Australian city. !

With what? The boards payslips folded into paper aeroplanes?

 

[smit0847]

Personally I think you can add DBX to that list from every major Australian city. I think you will see a full on assault by QF on international. If it works for them and EK then they may very well take those dreamliners down the track for a bigger schedule into DBX!

Ultimately I think EK will buy into QF. Where there is a will there is a way!

I know this is digging up old news but no-one has been able to explain to me what benefit there is for EK in doing this. Aren't EK just about operating more international flights into Australia than QF now? They have a much lower cost base than QF so the flights would cost less to operate. Would they cut back their flights to allow QF to operate them on their metal with their higher cost base? Why?

 

[The Rok]

I know this is digging up old news but no-one has been able to explain to me what benefit there is for EK in doing this. Aren't EK just about operating more international flights into Australia than QF now? They have a much lower cost base than QF so the flights would cost less to operate. Would they cut back their flights to allow QF to operate them on their metal with their higher cost base? Why?

IMO EK would scale back flights on their own metal and instead get QF to operate them. This would allow EK to expand to new non AU destinations without additional capital.

There may well be additional benefits for EK, I don't know. But I think it's pretty safe to say they wouldn't be talking to Qantas if there was not something in it for them!

 

[smit0847]

IMO EK would scale back flights on their own metal and instead get QF to operate them. This would allow EK to expand to new non AU destinations without additional capital.

There may well be additional benefits for EK, I don't know. But I think it's pretty safe to say they wouldn't be talking to Qantas if there was not something in it for them!

But why would they want to? With 220 planes on order, preserving capital doesn't seem to be a high priority (unless they can't get planes fast enough to meet demand). They wouldn't be operating, what, 100 flights a week to Australia at the moment if it wasn't working.

Emirates is arguably the worlds leading airline in various measurements. Qantas is not. I just don't know why EK would want to shack up with a struggling, limping airline like QF when it's doing so well on its own.

 

[markis10]

Frankly I would not be surprised if EK are not just playing with QF as a form of payback for their comments from a few years ago where they blasted EK.

 

[Mongo]

There's some concensus out there that Emirates want to provide easier access to the Qantas domestic network to its customers, thereby making EK more attractive to those looking to travel to Oz. A code share arrangement or similar would presumably include this requirement. Access to the QFF customer base would also presumably give EK an edge for outbound passengers as well.

 

[SeatBackForward]

There's some concensus out there that Emirates want to provide easier access to the Qantas domestic network to its customers, thereby making EK more attractive to those looking to travel to Oz. A code share arrangement or similar would presumably include this requirement. Access to the QFF customer base would also presumably give EK an edge for outbound passengers as well.

But they already fly direct to most capital cities..what use is QF's domestic network?

Sent from my Transformer Prime TF201 using AustFreqFly

 

[Mongo]

I'm guessing for people who want to see a large rock. Or Tasmania.

 

[TonyHancock]

But they already fly direct to most capital cities..what use is QF's domestic network?

Sent from my Transformer Prime TF201 using AustFreqFly

Timing is everything!

 

[markis10]

But they already fly direct to most capital cities..what use is QF's domestic network?

Sent from my Transformer Prime TF201 using AustFreqFly

Agree, the time QF could bring something to the party has passed, unless they want access to JQ traffic!