Qantas slashing jobs and possibly selling FF program?

[grussellt]

If you ask me, it's posturing. No government, especially since the LIBs already let another airline tank in their time (cough Ansett), wants to be the one that let an airline as iconic and large as QF fold. In all likelihood, we will see the government take a stake in QF and inject some finances. They'll probably cut a few more jobs and stem the losses to an acceptable point

Remember Kerry Packer's "Alan Bond moment" when he bought back Channel Nine? Perhaps the Federal Government will have the same reward: Sell QAN at $2/share and buy it back for $...? However you can be assured that QFF will stay in the skies and there will not be another "Ansett moment".

 

[OATEK]

I am not a good example and I do not quite live in SYD full time. Yet I have no issue connecting via every other capital city except for ADL as I did not get a chance before QF pulled the plug.

I certainly did the SYD-ADL-SIN route with QF, and didn't mind it at all. I was less impressed with SIN-PER-SYD on the return, but not because of any concerns with PER, but because it meant you spent pretty much a whole day travelling SIN-SYD. So I can see where our brethren from PER don't much fancy a SYD hub, but I am not sure it should be seen as a great hardship for ADL/MEL pax to travel through SYD. In Europe and Asia people accept that you can't always have direct flights, and need to transit hubs, whether it is LHR, CDG, MUC or FRA for a major European ariline.

 

[samh004]

Re: Qantas to cut 1,000 Jobs.

Meanwhile... this is where at least some of the money is going...

Leak reveals risky moves in Jetstar bid

While that will be costing Jetstar HK, and thus Jetstar and Qantas as a whole, I'm not sure why they aren't used in Japan or Asia or even Australia temporarily, where they may be some use for them, with the other Jetstar outfits?

 

[Pushka]

I certainly did the SYD-ADL-SIN route with QF, and didn't mind it at all. I was less impressed with SIN-PER-SYD on the return, but not because of any concerns with PER, but because it meant you spent pretty much a whole day travelling SIN-SYD. So I can see where our brethren from PER don't much fancy a SYD hub, but I am not sure it should be seen as a great hardship for ADL/MEL pax to travel through SYD. In Europe and Asia people accept that you can't always have direct flights, and need to transit hubs, whether it is LHR, CDG, MUC or FRA for a major European ariline.

It used to fly direct. So we've been downgraded.

 

[moa999]

Re: Qantas to cut 1,000 Jobs.

Meanwhile... this is where at least some of the money is going...
Leak reveals risky moves in Jetstar bid

Some, although I can't imagine lease and storage costs on 3 A320s is massive (albeit certainly not insignficant).
I would have thought leasing them to JetstarJapan or JetstarAsia would have been an option - aren't they both growing?

(admittedly some posts on pprune also suggest JetstarJapan has aircraft parked at Narita)

 

[Aussie_flyer]

Yep. Done that. As have many others.

No you haven't because you are one of the biggest complainers on this board regarding the lack of Qantas international services from ADL and PER. If you truly had moved on and didn't think Qantas owes you something then you wouldn't mention it as often.

 

[SQ421]

QAN in trading halt until Monday pending receipt of information from S&P regarding QAN's credit rating.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01474497

 

[Jousams]

Mmm I'm glad I used up all my QFF points a few months ago.

 

[hdfb]

Can't wait for QAN to resume on ASX, am certainly rubbing my hands together.

 

[777]

QAN in trading halt until Monday pending receipt of information from S&P regarding QAN's credit rating.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01474497

Unravelling.

 

[moa999]

At a minimum S&P will immediately put them on negative watch, if not downgrade immediately... but this shouldn't really need a halt.

 

[MikedOut]

It will be interesting to see how Christmas plays out. I wouldn't be at all surprised if Mr Joyce throws another blackmail tizzy and shuts it down for a few days. I'm glad I'm not flying anywhere this Christmas.

 

[Pushka]

No you haven't because you are one of the biggest complainers on this board regarding the lack of Qantas international services from ADL and PER. If you truly had moved on and didn't think Qantas owes you something then you wouldn't mention it as often.

Haven't mentioned this for months until yesterday's announcement and I threw it into the mix of the discussion. If you don't want to read my comments then put me on your ignore list and then I can stop responding to your posts.

 

[Aussie_flyer]

It will be interesting to see how Christmas plays out. I wouldn't be at all surprised if Mr Joyce throws another blackmail tizzy and shuts it down for a few days. I'm glad I'm not flying anywhere this Christmas.

Why would he do that?? I would be extremely surprised if that happened

 

[codash1099]

What I would like to see is JQ sold off in full and the rope cut lose, and would like to see QF either fully codeshare with MH or do a joint venture with MH all around asia from KUL.

How certain is it that you could disentangle JQ from Qantas? If the suggestions that there is cross subsidisation going on is even partly true, it may turn out that JQ is not a stand-alone viable operation.

 

[BD1959]

QAN in trading halt until Monday pending receipt of information from S&P regarding QAN's credit rating.

Oh dear.

Regards,

BD

 

[dk4]

How certain is it that you could disentangle JQ from Qantas? If the suggestions that there is cross subsidisation going on is even partly true, it may turn out that JQ is not a stand-alone viable operation.

If the Qantas board can/will not do it, an administrative liquidator could/would!

What ever is left of QF (i.e. Qantas the airline), at the end of the carve up, could be guaranteed some sort of government support while it restructures and adjusts to its new position in the market, but only once all the extraneous pieces are carved off QAN - to drive some money back into QF the airline.

I think that the question is - whether the board will do it, or if not, an administrator?

QAN is not the same situation as Ansett (although REX and Skywest aka Virgin Regional Airlines still fly), the vast majority of the parts inside QAN are worth significant amounts of money, particularly if they are 100% sold off to external independent buyers, in fact they are worth more than the business is staying intact.

 

[Flying mermaid]

If you ask me, it's posturing. No government, especially since the LIBs already let another airline tank in their time (cough Ansett), wants to be the one that let an airline as iconic and large as QF fold. In all likelihood, we will see the government take a stake in QF and inject some finances. They'll probably cut a few more jobs and stem the losses to an acceptable point

Really don't see that happening - much more likely to see more foreign ownership with restrictions of some sort e.g has to still be available to help transport Australians home in a crisis situation. can't see the difference myself - since it became a private company it hasn't been the same .....with the right ownership it could be better. Wouldn't like to see it go to a dodgy private equity company though. Wonder how much value life time QC and silver/gold has now?

 

[SQ421]

The rating on Australia’s largest carrier was cut to BB+, one level below investment grade, with a negative outlook, S&P said in a statement, citing increased competition and the airline’s forecast financial loss. Moody’s Investors Service yesterday said it may lower its Baa3 rating after Qantas predicted a record first-half loss and announced 1,000 job cuts.

Rating downgrades could boost expenses for the Sydney-based carrier, which paid A$265 million in interest last year after expanding domestic capacity to fend off competition from second-ranked Virgin. Qantas is seeking to save A$2 billion ($1.8 billion) of costs in three years as it contends with falling ticket prices and higher fuel costs.

Qantas Rating Cut to Junk by S&P as Virgin Fight Drains Cash - Bloomberg

Let the Aviation Hunger Games begin...

 

[burmans]

What is nuts about all this is that THEY ARE ADDING excess capacity. The only thing they said they would not review yesterday was the 65% "line in the sand" when it strikes anyone who gives it half a glance that it is clearly not "profit maximising."

AJ needs to swallow his pride and reduce domestic capacity until the planes are close to full. I can't believe they are insisting that won't do it but they want to be bailed out.

Have to 100% agree with this, its almost like they are putting their ego over being the biggest over running at a profit. Not that this is apparently unusual for airlines but why Qantas would want to be the "leader" when being a leader just means losing more money than the other airline is beyond me. Cut your losses and let Virgin lose some of that money if they really want to.