QANTAS to split into Domestic and International organisations

[simongr]

Re: QANTAS to split International and Domestic operations from July

I don't think you can take that for granted. Creative accountancy has few limits and since there will be interaction between the two arms, there's plenty of room to "adjust" the figures :shock:

Equally they don't have to publish the accounts for the subsidiaries in detail. They might have to do segmental analysis on the businesses though. Given that there is no overseas trading between the businesses the transfer prices for services between QFi and JQ (i.e. JQ allegedly getting maintenance for free and artificially increasing profit - when in fact it is really about the lower wage base and the newer fleet) won't be looked at by anyone like the ATO as they will be a consolidated group for tax purposes - amusingly that would mean that losses in QFi could offset the profits in JQ and reduce the theoretical tax burden that JQ "pays" - making the ROCE look even better...

 

[koonyaflyer]

Re: Qantas International and Domestic Business to split

That is not his wife. He has a partner but they aren't married. They are clearly related but she might be his sister in law.

.

Forgive me if I misunderstood your post, but if you are referring to Buchanan, he does have a wife, Elizabeth, with whom he is going into business, as announced on their website.

 

[kamchatsky]

Re: Qantas International and Domestic Business to split

I would not be surprised if QFi will copy NZ and do Seat to Suit offerings for short haul flights.

 

[Timba-Jet]

The temptation here is to be cynical and see QFi being stage managed out the door.

The positive way to look at is that they can now more acutely focus on 4 separate aspects of their business (QFi, QFd and QFF and JQ), with structural separation (ie. no cross subsidising) and decent accountability of each part of the business. It also "grooms" at least 3-4 potential CEOs in waiting, none of whom will be happy to see their business cross subsidise the other parts.

Who knows what the real motive is, but I don't think it's fair to think of the worst.

Fact is QFi is struggling and is in need. Appointing an exec to run and have end-to-end accountability of QFi performance makes sense.

If managed properly the internal setup should be seamless to the customer. Think Dom v Int cabin crew, different group of employees but service standards should be the same.

Now what strategy Hickey and his team put in place to turn around QFi, consolidation or expansion, new partners etc now that is something to wait and see before we start jumping up and down

 

[Isochronous]

Re: QANTAS to split International and Domestic operations from July

Perhaps QF Domestic could be re-branded Australian Airlines or even Trans Australian Airlines and use the flight code TN? Some of the 734's would probably feel quite at home in a blue/gold colour scheme?

View attachment 7482

I thought Australian Airlines used AO

 

[samh004]

Re: QANTAS to split International and Domestic operations from July

Yep, that's the official Qantas Rep! Someone has been caught spying!

I’ve seen Red Roo browsing the Meetings and Social events threads where everyone posts what flights they’re on, so being in this thread is hardly worth noting

I would not be surprised if QFi will copy NZ and do Seat to Suit offerings for short haul flights.

I really hope not, QF’s service TT is really good, I wouldn’t be happy if it went to the same level as DJ/NZ.

 

[Deleted member]

Isn't jet connect already a subsidiary ? Running between NZ and oz etc etc ?
Could QFi become an offshore entity?

 

[markis10]

Isn't jet connect already a subsidiary ? Running between NZ and oz etc etc ?
Could QFi become an offshore entity?

QFi is restricted by legislation to be Australian owned and operated in the majority.

 

[eastwest101]

Until all the Jetstar Australia and Jetstar International are broken out and clearly accounted for in the QFi and Qfd costs, overheads and assets then I remain pretty cynical about the transparency and accountability arguments. There are reasons for this but its not clear exactly what they are yet IMHO.

 

[serfty]

Re: QANTAS to split International and Domestic operations from July

I thought Australian Airlines used AO

QF still owned the name, but the code (TN) had been reallocated by the time Australian Airlines reborn early this century.

 

[simongr]

Until all the Jetstar Australia and Jetstar International are broken out and clearly accounted for in the QFi and Qfd costs, overheads and assets then I remain pretty cynical about the transparency and accountability arguments. There are reasons for this but its not clear exactly what they are yet IMHO.

Even if JQ was a separate legal entity (separate listing for example) QF could still recharge maintenance at below cost and it would still not be transparent to the market. Obviously if separately listed there would not be the incentive to do that there is now - mind you I don't actually understand why they would want JQ to look artificially more profitable than it really is - hence I am not 100% in band that think JQ is getting a free run - although I do think that they are favoured in terms of fleet updates. But again I don't understand why...

 

[whatmeworry]

[video=youtube;tzlCuZox-lI]http://www.youtube.com/watch?v=tzlCuZox-lI[/video]

 

[JohnK]

Re: Qantas International and Domestic Business to split

Does this move spell the beginning of the end for Qantas international?

 

[oz_mark]

Re: Qantas International and Domestic Business to split

Does this move spell the beginning of the end for Qantas international?

More a sign AJ, IMHO, is out of his depth in fixing the problems, but needs someone else to blame.

Seems a bit strange that they have been removing layers of management, and now go and do this....

 

[Deleted member]

I still maintain QFi will become an offshore based subsidiary and then will be ( largely) free of many of the constraints re merger and acquisitions .......

 

[eastwest101]

I still maintain QFi will become an offshore based subsidiary and then will be ( largely) free of many of the constraints re merger and acquisitions .......

I agree that this is where they are heading, its simply laying the groundwork for this option to be taken - offshore base, foregn ownership, by-pass Qantas Sale act etc. If it wasn't at least an option, then you wouldn't bother doing it would you?

 

[moa999]

QFi is difficult to sell as it must always remain 51% Australian owned or lose its air rights.
It also must be substantially based in Australia

 

[Kendall Roy]

Re: Qantas International and Domestic Business to split

More a sign AJ, IMHO, is out of his depth in fixing the problems, but needs someone else to blame.

^This...... - Lets announce a structural change to create a perception that top level management is actually doing something.

- RedQ FAIL
- MH tie-up FAIL
- J* Vietnam FAIL
- J* Asia FAIL
- J* HKG/Japan - will likely FAIL also

I'm sure there's others I've missed....

Given the amount of "stuff-ups" and false starts under AJ's reign, it's hard to comprehend how this bloke is still in charge.

Perhaps Bruce B was made the scapegoat during the recent announcement?

 

[smit0847]

Re: Qantas International and Domestic Business to split

How was J* Asia a failure?!?

 

[Kendall Roy]

Re: Qantas International and Domestic Business to split

How was J* Asia a failure?!?

IIRC, they've only managed to achieve a miniscule profit once. I believe significant capacity cuts have also occured due to poor patronage (SIN-AKL)