QANTAS to split into Domestic and International organisations

[JohnPhelan]

Re: Qantas International and Domestic Business to split

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.

Ummmm......... because the Qantas Group is one of the most profitable airline companies in the world??

 

[nlagalle]

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)

So one route doesn't perform and it's a failure??

 

[simongr]

Isn't that one of the routes that they are planning to put their brand new 787s on as well?

 

[Kendall Roy]

Happy to stand corrected on some of my statements, but there's obviously been several significant announcements (to markets) about partnerships etc which have failed to materialise. If you're going to trumpet significant changes to company structure/partnerships, one would have thought that at a minimum, an "in-principle" agreement around proposed changes would have been achieved prior to such grandstanding.

 

[amaroo]

Happy to stand corrected on some of my statements, but there's obviously been several significant announcements (to markets) about partnerships etc which have failed to materialise. If you're going to trumpet significant changes to company structure/partnerships, one would have thought that at a minimum, an "in-principle" agreement around proposed changes would have been achieved prior to such grandstanding.

Some of those announcement really rattled some of the unions....maybe they ended up serving another cause:!:

 

[Kendall Roy]

Some of those announcement really rattled some of the unions....maybe they ended up serving another cause:!:

Good point - perhaps part of their IR strategy.....

 

[eastwest101]

Good point - perhaps part of their IR strategy.....

And also giving them options regarding taxation treatment (depreciation), crewing, future carbon trading (EU and Australia) implications and ownership plus partner airlines and alliances.

 

[Platinum A332]

Re: Qantas International and Domestic Business to split

Ummmm......... because the Qantas Group is one of the most profitable airline companies in the world??

The airline is projected to make a loss this year.

I got nothing against JQ Asia. What I do not like is the fact ALL the investment is going into JQ with nothing into QF.

 

[moa999]

Re: Qantas International and Domestic Business to split

Yes,
Because QF Intl doesn't have 12 A380s, a bunch of A330s, relatively new F lounges at SYD and MEL, with SIN and HKG under construction.
IMHO It is very difficult to argue that QF Intl hasn't or isn't getting a large amount of capital - it just doesn't seem to be generating a return with it

 

[Platinum A332]

Re: Qantas International and Domestic Business to split

Yes,
Because QF Intl doesn't have 12 A380s, a bunch of A330s, relatively new F lounges at SYD and MEL, with SIN and HKG under construction.
IMHO It is very difficult to argue that QF Intl hasn't or isn't getting a large amount of capital - it just doesn't seem to be generating a return with it

And from another perspective;
- 8 A380 deferred in order to finance 110 JQ A320. Mainline is being starved of capital investment for JQ. Even CX facing yield pressure is maintaining all aircraft orders and retiring 747s sooner. QF is sticking with sans 5 bathroom 747s until 2020.
- No investment in the A330 product since purchase. Over that time CX has went from an angled product, to a herringbone fully flat bed, to the new reverse herringbone product. QF still has the same angled flat Skybed for 8 years now (with no upgrade plans).
- 787s won't arrive in QF mainline till 2016 or later.

I will hand you the F lounges though - these are great, but it becomes more difficult than ever to use them with a shrinking International network.

 

[patrickk]

Re: Qantas International and Domestic Business to split

^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?

You have certaily set the bar very high if you regard J* Asia as a Fail; and do note QF is one of only 2 globl airlines with an invest grade, so despite all of AJs 'stuff-ups' there seems to be something there after all.

 

[eastwest101]

Re: Qantas International and Domestic Business to split

You have certaily set the bar very high if you regard J* Asia as a Fail;

There are already considerable doubts about J* Asia's sale of muffins *cough* profit margins....

and do note QF is one of only 2 globl airlines with an invest grade, so despite all of AJs 'stuff-ups' there seems to be something there after all.

Lehman Bros and Enron were also investment grade companies according to the ratings agencies.......

 

[el_rooto]

Re: Qantas International and Domestic Business to split

I just hope QFi grows the network under this new structure. Although, I'm not holding my breath.

 

[simongr]

I will hand you the F lounges though - these are great, but it becomes more difficult than ever to use them with a shrinking International network.

and the lounges were built almost 6 years ago...