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

[samiam]

Re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route chang

Maybe I have a selective memory, but I hanker for the days when James Strong was CEO. I am sure that Qantas ran so much better in those days and travelling international was very pleasant. Now it has just all gone to the dogs. Any wonder they are losing money.

The James Strong era was 'before my time', however I continue to hear positive recollections, regarding his tenure as CEO, on this discussion board. Maybe the memory of the collective is selective - James Strong does sit on the current Qantas Board and is party to hiring (and retaining) Joyce over Borghetti.

Qantas Board of Directors

 

[MatF]

Re: QF CEO speech - dom fare restrucure, profit update, RR settlement, Int Route chan

Here's a collation of my dot points that I've posted throughout this thread. It's a reasonable summary, I think.

• Great to be here in Australia's capital talking about Australia's Qantas".
• We're the only airline that is and of Australia
• Recalling when QF put a plane into Egypt for the evac.
• Not many brands that make an "attachment" to Australians.
• "We're part of the lifeblood of the Australian economy and culture."
• "We very much regret the trouble it's [ash cloud] caused our passengers."
• Drove from Melbourne to Sydney over the weekend after the disruptions.
• Five minutes in there's been two feelgood stories from passengers (stories that he's heard and re-told, one on Egypt and one on the ash cloud)."For more than 90 years QF has stayed in business by being ready to change."
• "We have changed with the times. Now the challenge is to build the QF of our times."
• "I also want to foreshadow an announcement."
• Reached a compo agreement with RR, extensive negotiations, RR has committed to a settlement of $95m, this was only signed at 11.30am this morning (applause), details confidential but pleased with the outcome, $135m cost of repairing aircraft is covered by insurance, aircraft will not be back in operation until at least Feb next year.
• Underlying profit before tax of $500m to $550m, the best result since the GFC and "reflects the deep underlying strength of the QF group and its portfolio".
• Capital expenditure $2.5b forecast for next fin year."Our result this year will be achieved despite the $206m impact of weather and natural disasters" including est. $21m caused by volcano (up to 20 June).
• "On QF alone, 120k pax affected, 80k on JQ, volcano in Iceland disrupted 14k QF pax."Our competitors are reconsidering their options . . ."
• "Tomorrow we will be announcing our now domestic fare structure . . . which will give more benefit to our frequent flyers".
• Purchase of 10 F100 aircraft.
• QF Freight working profitely.
• "QF international absorbs more capital than any other part of our business".
• "Clearly, the current situation is not sustainable."
• "QF international is quite simply one of the world's best airlines. It's consistently ranked in the top 10. It is renowned for its safety performance . . . It wins awards for food and wine . . . QF international is a great airline."
• "It has achieved its required returns only three times in the last 15 years. The problem has been developing for more than a decade."Having a dig at government-owned airlines without the expectation of return, some with up to 24% lower operating costs.
• "No doubt many people think QF is indestructible."
• Will remember AN's 10 year anniversary this year.
• "AN was a good airline. Many Australian believed it, too, would be around forever. AN collapsed because it failed to adapt in changing times".
• "Our task must be to transition a great airline to a great business."
• "On August 24 I'll be announcing our plans for the strategic renewal of our international operations."
• "We'll be working with our alliance partners more closely . . . including more joint ventures."
• "The future will be about travel to and within Asia".
• "We'll cast a ruthless and honest eye over non-performing . . . parts of our international operations".
• In five to 10 years, QF international will be "participating in many regional opportunities around the world. We'll be taking QF know-how on the road."
• "We'll be doing things smarter and more efficiently."
• "We'll extend all reach while restraining our cost".
• We'll be giving our customers a fantastic travel experience."
• Now going onto talking about employees and IR.Engineers are among the highest paid employees at QF.
• Demands are out of touch with reality.
• The pilots' union is demanding that all pilots on all QF airlines, including JQ, are paid the same wages as those on QF.
• This would quickly send JQ out of business.
• Need a sensible resolution with the unions.
• Hoping commonsense can prevail but it "will have to be a discussion that recognises the real world and its imperatives".

Many thanks. Not a lot of substance there, but a lot of motherhood statements. I guess we continue to wait?


Cheers,
Mat.

 

[harvyk]

Re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route chang

My view in all this is that QF is all but finished. I do not like Joyce and would have him shipped back to Ireland in a trice if it were in my power. He certainly learnt well from Dixon.

Well QF group is still flying and has still made a profit... It's biggest problems is that it is not keeping their traditional customers happy, which is not good in itself, but not something they can't turn around... Question the fact that QF even made JQ, it should have been completely separate, not the current "Qanstar" arrangement they have, in other words they should define their market space and stick to it... As a marketer once told me, to be everything to everyone you need infinite money and resources...

Obviously the marketing people who try to tell us what a wonderful experience these new planes are have never travelled down the back in cattle class. The narrow, uncomfortable seats and claustrophobic spaces are awful.

Yeah but the more accurate marketing tagline of "just like a sardine tin" doesn't really entice people...

Just re-reading the dot points, the other thing Mr Joyce has to realise is that the average pax doesn't make a destinction between QF Dom and QFi... To them they are simply boarding a QF plane...

 

[lsmi4126]

Increase points / statuses for bronze members (i would guess 90% of economy are Bronze members)

I think you'd be suprised at the number of non-NB QFF/OW members slumming it in Y - it's definatly more than 10%.

On my recent trip to the UK, I flew SIA to Singapore, Air Asia X (premium) to London and then QF home to Melbourne on the second newest A380. The QF flight was the worst. I was a dreadful flight and I got home with my neck out and a shocking headache due to the uncomfortable seats.

The Singapore Airlines A380 was fine, but Qantas have wasted their money. Obviously the marketing people who try to tell us what a wonderful experience these new planes are have never travelled down the back in cattle class. The narrow, uncomfortable seats and claustrophobic spaces are awful. The old 747's were better. When the SIA A380 landed, the captain brought it down so gently you would hardly know we'd touched the ground. Both QF landings (Singapore and Melbourne) were so hard, the whole plane shook. No way to treat a piece of kit worth $300m.

A completely OT segway...

While i don't disagree with the landing comment (the QF pilots definitely slam those birds onto the runway, you tend to notice it more downstairs that upstairs too), I completely disagree with the rest and think it's an unfair comparison.

Furthermore, IMHO there is no comparison between the QF B744s and the A388 both in ride, noise, service (I do love those new short-contract hosties) and space.

 

[markis10]

Re: QF CEO speech - dom fare restructure/profit update/RR settlement& Int Route chang

Hard landings are often better technique landings than those gentle ones, especially in hazardous weather, and are often a sign of a pilot exerting positive control versus one just letting it happen.