QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

[Limewood]

Be an interesting speech today by Mr. Joyce at Australian Press Club.

 

[Nigelinoz]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Interesting,but not surprising that one of the paragraphs has this-

The changes may include greater sharing with Qantas' alliance partners and shifting some routes to its low-cost airline Jetstar.

​

That strategy (If correct,this is News Ltd after all)may well save QF some money,but does it degrade (further?) the QF mainline brand?.
I'll wait to see what Mr Joyce says in his speech,interesting times ahead for QF,and indeed all Australian aviation.
Cheers
N'oz

 

[Limewood]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Some like myself are hoping a SYD/HNL/SFO route may open up to Jetstar.

 

[tuppaware]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

I think Qantas as a brand is on the way out on the International market.
They seem to want to cut routes and would NEVER want to fly Jetstar Internationally !
This would be a big disappointment for me and would push me to another airline. Simple.

 

[ftm]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

It certianly will be a shame if the announcements today are along the lines of transferring more QF routes to JQ. That won't save Qantas International. The further reduction in network and product will hurt the profitability of the international business because there will be even fewer reasons to choose Qantas.

 

[Sifor]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

That strategy (If correct,this is News Ltd after all)may well save QF some money,but does it degrade (further?) the QF mainline brand?.

Qantas is in a share trading halt today for a "price sensitive announcement on their financial outlook"...

I've always said QF will continue to pass more routes onto JQ as it is a more profitable service. Does it degrade QF? Well people are certainly shifting their travel plans to JQ. I think it's a changing attitude to flying these days.. people just want to get to their destination and don't seem that concerned about the "flying experience". It's probably more like to a train ride now, just something you've got to do.

I envision QF's only international routes in the future will be long hall A380. The rest will go to JQ, along with more domestic routes too.

 

[ChrisCunard]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

He may well announce the new international subsidiary that many are calling Qantasia.

 

[anat0l]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

I'm not liking the sound of this.

If QF pretty much gets restricted to A380 routes and current 747 routes then I'm well on my way to jumping. Which is a real shame because I'd like to keep a foot in oneworld, and QF is the cheapest way to do so. Otherwise, I may just switch to Star Alliance + Velocity.

Getting out of $200 million red line in international does not involve cutting routes. Admittedly, the answer entails additional risk, but that's what is necessary. Jetstar can't bail QF mainline out forever, and to keep "relying" on it is fallacious, despite its incredible profitability.

Joyce said that he wants QF to be known as a premier global airline. I hardly see how withdrawing QF from markets or cutting routes makes it a global airline.

 

[djfuzz]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Qantas is in a share trading halt today for a "price sensitive announcement on their financial outlook"... I've always said QF will continue to pass more routes onto JQ as it is a more profitable service.

is it? Is it really clear how much off-the-book cross-subsidization JQ benefits from? It certainly will be if AJ and his merry band get their way and shut down QFi; though they may have bailed early enough not to be around to deal with the consequences.

 

[ChrisCunard]

Shareholders - speak up (prior and after AJ's big speech)

Shareholders, what would be a best-case result of today's big announcement be?

- What would you see as positive signs and an assurance to hang in there at QAN?
- Will you continue to support the airline if they cut QF flights in favour of JQ?
- Are you looking to simply have the QAN share price increase (regardless if QF or JQ are the way forward) or do you care about the brand?

--

And after the announcement:

- Thoughts?
- Would you vote to keep the CEO and Board (if given the chance) following this announcement?
- What is the future of QF?

 

[medhead]

He may well announce the new international subsidiary that many are calling Qantasia.

The one that they've said is only one idea of many?

 

[ChrisCunard]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

I'm not liking the sound of this.

If QF pretty much gets restricted to A380 routes and current 747 routes then I'm well on my way to jumping. Which is a real shame because I'd like to keep a foot in oneworld, and QF is the cheapest way to do so. Otherwise, I may just switch to Star Alliance + Velocity.

That'd be the end of flying QF internationally for any one living in PER or ADL - a very sad thought.

 

[Kendall Roy]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

I'm looking forward to the plethora of excuses Joyce will come up with to hide the incompetence of QF management, who in my opinion, are responsible for the sad state of the Int'l business.

With that said, not a good sign! I point blank refuse to fly JQ, and if further International Routes are shafted, that may influence my domestic preferences towards VA.

 

[Simsy85]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Interesting,but not surprising that one of the paragraphs has this-

That strategy (If correct,this is News Ltd after all)may well save QF some money,but does it degrade (further?) the QF mainline brand?.
I'll wait to see what Mr Joyce says in his speech,interesting times ahead for QF,and indeed all Australian aviation.
Cheers
N'oz

In all fairness this says may include... ie this is the journo's opinion.

The announcement comes tomorrow - personally, i wouldn't give an embargoed media release till late this afternoon or even tomorrow morning.

 

[ChrisCunard]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Agree - although I would fly JQ if I had to - one of the greatest things is using points acquired doing the domestic run to fly J on QF international. If the international run goes - what's the point?

Alliances will shift to VA if QF Int. dies.

 

[Kendall Roy]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Jetstar can't bail QF mainline out forever, and to keep "relying" on it is fallacious, despite its incredible profitability.

Quite a few people suspect it's the other way around!:shock:

 

[markis10]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

If QF pretty much gets restricted to A380 routes and current 747 routes then I'm well on my way to jumping. Which is a real shame because I'd like to keep a foot in oneworld, and QF is the cheapest way to do so. Otherwise, I may just switch to Star Alliance + Velocity.

Welcome aboard ! Its pretty much a given that LAX, DFW and LHR via the SIN/BKK/HKG will be the only QF destinations shortly, everything else going to JQ IMHO. The excess 330s will be redepolyed to JQ for the old QF flights as well as flights to PVG and KUL as hub feeders.

Interesting timing given the Qatar order for more 777s and Air Asia apparently ordering 200 A320 neos tomorrow.

 

[Limewood]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Was lookin for SYD/HNL/SYD Nov. QF in J were out of question at some $7K each, JQ given their J (is old Star Class like Y+) was bit over $2K each and QFF J status points are handy. Only hope one day JQ get real J seats and room to match.

 

[MarcB]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

Announcement regarding expected profit is on the ASX website already. Indicates that any announcement about international ops will come later in the year. So might not be anything announced today at all...

http://asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01191221

 

[markis10]

re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route changes?

I have updated the title to reflect the content, of note:

1. $95M RR settlement
2. Cyclones/Flood Impact $206M
3. Ash cost currently at $21M and growing.
4. QF Intl loss at 200M