Qantas slashing jobs and possibly selling FF program?

[Supersonic Swinger]

Would be very nice if they could somehow extract themselves from EK and mend things with Cathay, sticking to OneWorld Alliance partners for connecting flights through Asia... I'm pretty sure that'd solve all their problems, but then what do I know

I don't know it would solve their problems, but I'd certainly be booking with them more...

 

[11sjw]

With the immediate focus "inward" on costs it just highlights the short term focus of those running the business. Nothing along the lines of "How do we make QF more attractive?" but simply "Let's adjust the bottom line by slashing a further 700 jobs on top of the 300 previously announced." They're running a race to the bottom and there is generally no winners in those.

 

[Programme]

But as a consumer I make the choice to fly with an airline that best matches my needs. Qantas isn't that airline on international flights. I'm just explaining my choice. That's all really.

Which is entirely rational and is why Qantas International is in trouble. It's not just those from outside SYD/MEL that have issues being loyal to Qantas - those wanting to travel to secondary locations (eg. other than LHR, LAX, SIN and HKG) have issues too.

For example, if I want to travel to Seoul (ICN) from MEL, I only have a choice of flying via SYD on an Asiana codeshare, or fly to NRT (also via SYD) and then on to ICN separately. Needless to say, I flew with CX via HKG. It was also much cheaper. Unfortunately, there isn't really any way for Qantas to compete because there isn't enough traffic MEL-ICN to have its own route and it doesn't have a hub in HKG!

I would say this is geographical disadvantage is one of the main easons why QF has gone around trying to make mini Jetstars around Asia. Apart from tapping into the local LCC market, it establishes a hub in a geographically favourable location that could then inwardly and outwardly feed QF's international operations from Australia. It hasn't really been working that well though...

ps: Hi Red Roo, spotted you reading!

 

[samh004]

I don't know it would solve their problems, but I'd certainly be booking with them more...

I'd imagine being able to stick with a OneWorld alliance partner right through to destination, rather than whatever Emirates are, would entice people a little more. The goal could be on mainly feeding flights to different Asian destinations, that are appropriately timed to connect with services already existing, and if that means leaving later than SYD allows (so another airport) so be it.

I'm sure CX, MH and QR would be very keen to offer connections. As might BA perhaps meeting them in SIN.

 

[BD1959]

Its easy to run an airline from the sidelines isnt it?

Not easy at all. But then I'm not being paid handsome bonuses because I have the company back on track, making a huge success of our overseas investment strategy or whipping my competitors backside.

If this little black duck was CEO he'd probably come up begging his staff and customer base to fight the nasty Joe-Foreigner with a Facebook campaign, so bereft if ideas, I'd be!!

Thanks for the Like!!

BD

 

[Supersonic Swinger]

I'd imagine being able to stick with a OneWorld alliance partner right through to destination, rather than whatever Emirates are, would entice people a little more. The goal could be on mainly feeding flights to different Asian destinations, that are appropriately timed to connect with services already existing, and if that means leaving later than SYD allows (so another airport) so be it.

I'm sure CX, MH and QR would be very keen to offer connections. As might BA perhaps meeting them in SIN.

In addition to flying the 787 to Doha to meet Qatar's Europe and North Africa flights, which look to be almost as extensive as Emirates. At least, that sounds good from my armchair.

 

[JohnK]

Re: Qantas - back to basics

Qantas needs to fix its underlying root cause issues, and messing with its FF program (which is highly profitable) would be one of the most ludicrous things imaginable.

I am sorry but in order to do that they need a CEO who thinks it can be turned around not someone that is there to line their pockets.

The current CEO has had more than enough opportunity and it is time to go.

And I still dont think overseas private equity is the way to go just like I did not think it was the way to go a few years ago.

 

[samh004]

In addition to flying the 787 to Doha to meet Qatar's Europe and North Africa flights, which look to be almost as extensive as Emirates. At least, that sounds good from my armchair.

I guess they probably had been in talks for a while with Emirates, and might not have known QR had been approached to join OneWorld. And then they had to make a choice. Personally, I'd have thought keeping Asia and also joining up with QR in the Middle East would make sense, but apparently not.

 

[Programme]

I'm sure CX, MH and QR would be very keen to offer connections. As might BA perhaps meeting them in SIN.

I would like to think so, as well, but what is in it for the likes of CX and MH to have a closer relationship with Qantas?

Taking MEL as an example (because I'm most familiar with it) - CX has 3 flights per day, and QF have one. Which leaves 2 hours after the morning CX flight. MH, likewise, has 3 flights to KUL and QF has none (!)

Why should CX or MH feed QF into Australia when they are capable of doing it themselves and keep more of the profits? The only advantage that QF has is for traffic destined for cities outside SYD, MEL, BNE, CNS, ADL and PER. Of which I don't think there is much.

 

[Supersonic Swinger]

I guess they probably had been in talks for a while with Emirates, and might not have known QR had been approached to join OneWorld. And then they had to make a choice. Personally, I'd have thought keeping Asia and also joining up with QR in the Middle East would make sense, but apparently not.

Negotiations to join the big 3 alliances take months if not years. Qatar joining was announced in early October 2012, the QF-Emirates tie up was announced four weeks earlier. I think Willie Walsh said as much when Qatar was announced, saying OW was 'supportive' of QF's Emirates tie up.

 

[Supersonic Swinger]

I would like to think so, as well, but what is in it for the likes of CX and MH to have a closer relationship with Qantas?

Taking MEL as an example (because I'm most familiar with it) - CX has 3 flights per day, and QF have one. Which leaves 2 hours after the morning CX flight. MH, likewise, has 3 flights to KUL and QF has none (!)

Why should CX or MH feed QF into Australia when they are capable of doing it themselves and keep more of the profits? The only advantage that QF has is for traffic destined for cities outside SYD, MEL, BNE, CNS, ADL and PER. Of which I don't think there is much.

Wouldn't this apply to Emirates as well?

 

[jetlagger]

I guess they probably had been in talks for a while with Emirates, and might not have known QR had been approached to join OneWorld. And then they had to make a choice. Personally, I'd have thought keeping Asia and also joining up with QR in the Middle East would make sense, but apparently not.

At times, I guess - the logical becomes illogical..
QR & EK, amongst others, already have a plentiful amount of ex QF employees, why not transfer the next 1k of redundant QF staff to an often higher paying, reduced tax & secure work environment, if relocation favourable.

 

[Programme]

Wouldn't this apply to Emirates as well?

I guess it does, but taking MEL as an example again, QF9 complements EK407 as it arrives/deparats at a different time, and partnering with QF allows EK to rapidly expand into traffic to/from Australia, all without having to put their own assets into a possibly risky venture as well as neutralising what might have been a significant competitor.

CX and MH can and have basically saturated the market between Australian cities and their home hubs. The only advantage in partnering with QF would be if their traffic rights were exhausted and they needed more feed than they were allowed from Australia to their hubs.

 

[JohnK]

Not to all of the above, no. But a few to key ports (SIN, KUL and BKK in particular) would be good.

That's not the point John - why would someone from PER want to fly via SYD or MEL to go to BKK or HKG or NRT. It's not really an option is it.

I did not say you in PER backtracking to SYD was a good idea. But someone in ADL shouldn't have an issue.

I simply think it is not fair for Qantas to have to service every Australian capital with every major city in Asia but certainly some routes if profitable would be a good idea.

Qantas is never going to be able to compete with SQ, TG, MH, CX etc bringing you into their hubs and then on from there.

Back to ADL again. What is wrong with ADL-SYD-BKK on Qantas? Is ADL-HKG-BKK or ADL-KUL-BKK better? Yes I know TG could be an option but that is not Oneworld nor is it much choice.

 

[ketsuzei]

What is wrong with ADL-SYD-BKK on Qantas? Is ADL-HKG-BKK (...) better?

The latter is a much better transfer. No buses.

 

[whatmeworry]

I went to from MEL- xSIN - FRA return 2 years ago and the flight was chokers both ways! Yet QF pulled the plug on flights to FRA?

 

[jetlagger]

I went to from MEL- xSIN - FRA return 2 years ago and the flight was chokers both ways! Yet QF pulled the plug on flights to FRA?

Similar scenario for QF19 BNE/MNL, excellent consistent passenger & freight loads ex BNE.
QF enhancement .. 'Pull the plug" on that route too..

 

[JohnK]

Going back to burning or hoarding points, I'm thinking we are in a no win really.
I had 3 trips booked with Ansett FF Points and ended up not leaving my lounge room after they folded. If you book all these ASA's or whatever you use your points for, if QF went down the tube, they wouldn't honor any previous bookings of reimburse points IMO.

Hoarding points was never a great idea but it happened.

I am planning on using on Oneworld awards when I get the time but Qantas is doing everything in its power to put an end to that plan.

And it seems such a waste in using them on Any Seat awards going nowhere in particular.

 

[erkpod]

Re: Qantas to cut 1,000 Jobs.

Waiting for Virgin to announce direct flights from Adelaide and Perth to: Singapore, Tokyo and Hong Kong

Direct VA flights from anywhere in Australia to Japan would be a nice missing link to fill.

 

[JohnPhelan]

I went to from MEL- xSIN - FRA return 2 years ago and the flight was chokers both ways! Yet QF pulled the plug on flights to FRA?

Yield !!! (i.e. profit margin)