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

[Nigelinoz]

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

Funny comment on Twitter,press club gave AJ a "Gold Card" as a momento of his visit,comment on Twitter

I'm sure they'll soon be "enhancing" his privileges back down to the level of silver

Cheers

N'oz

 

[obrienja]

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

Funny comment on Twitter,press club gave AJ a "Gold Card" as a momento of his visit,comment on Twitter
Cheers

N'oz

I'll come clean - that was me

 

[connieguy]

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

Funny comment on Twitter,press club gave AJ a "Gold Card" as a momento of his visit,comment on Twitter
Cheers

N'oz

Interesting comment by AJ, during "Question Time", that the FF program made A$200m last year. That means the QF FFer profit offsets the A$200m loss on the QF International business :shock: which would suggest the QF Domestic business and JQ are making the lion share of the groups profit.

With all his praise for JQ and the decision to make that move, seems to foretell what will be in the Aug release. Maybe a move to a QF cluster at KL in conjunction with the new MH OW membership? Remember the JV comments?

 

[dajop]

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

Nah, ,it's time for those dual livery planes to be Qantas from the Y+ cabin forward .. Jetstar operated economy cabin ;-)

Seriously why not hand over the really underperforming routes to Jetstar, BUT with free food/baggage & IFE? Is the costs of providing luggage,food and capital cost of "on Q" that is killing QF intl? Or is it the labour and maintenance costs or way aircraft are depreciated? If the latter, why not just hand over all the underperforming intl routes to JQ, but keep the QF full service principle?

Can't help but think for a start MNL, CGK, NRT & HNL are gone.

 

[harvyk]

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

Though pessimistic, you may be right. Would they lose NZ/Jetconnect too?

I'd say yes on that, the routes will exist as JQ routes... (AirNZ are already treating TT routes as an LCC op, before too long EK will be the only way to fly TT), QF25 \ 26 between AKL and LAX will probably also go...

Would be sad to lose HKG as a QF port though, to say nothing of JFK. Wonder if the new favourite DFW would fall out too.

HKG would be passed over to CX, JFK and DFW would be passed over to AA... QF will simply have an AA feeder service to LAX, expect some code share announcements in the near future...

BTW I do hope I am wrong with all this...

 

[markis10]

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

Interesting comment by AJ, during "Question Time", that the FF program made A$200m last year. That means the QF FFer profit offsets the A$200m loss on the QF International business which would suggest the QF Domestic business is making the lion share of the profit.

Old news and discussed at length when it was announced in August last year, EBIT for QFF was actually 320M for FY10 and over $200M in FY09.

 

[djfuzz]

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

Old news and discussed at length when it was announced in August last year, EBIT for QFF was actually 320M for FY10 and over $200M in FY09.

Hard to speculate on this without a more rigorous breakdown, but wouldn't part of the reason that QFF is so successful be due to a) people flying on QFi and b) people being able to redeem points on QFi? Surely the QFF contribution has to be attributed in some part to the other entities, the loss of which would end up hurting QFF as well?

 

[kamchatsky]

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

Actually QAN could be worth a buy if they can lower the wages of everyone in QF. It is already down to $1.80, and they have tons of cash. Yes it sucks for a lot of AFFers but at the end it is all about business.


Even if they improve all the planes/IFEs food, unless customer service (ie staff) improves (which is a hard thing to do esp with current situation with unions), people will still fly CX/SQ/EK etc.


So maybe sooner or later they will shift everything to JQ, then a few years later they rename JQ as QF to push costs down

 

[oz_mark]

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

Hard to speculate on this without a more rigorous breakdown, but wouldn't part of the reason that QFF is so successful be due to a) people flying on QFi and b) people being able to redeem points on QFi? Surely the QFF contribution has to be attributed in some part to the other entities, the loss of which would end up hurting QFF as well?

That's my view as well. QFF is heavily reliant on the QF network for its success.

 

[gibspmuh]

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

Can't help but think for a start MNL, CGK, NRT & HNL are gone.

Being a semi-regular flyer on the CGK route I wouldn't be surprised to see that being shifted to JQ (though the J class cabin does usually seem pretty full). But with GA going from all flights going via DPS to now having daily non-stop flights from SYD and MEL to CGK (and often on sale as low as $600 or so) I can imagine it's tough for QF to compete. That being said, if QF actually got their act together and allowed online purchases of tickets out of Indonesia (as most other airlines seem to be able to manage these days) they might sell a few more tickets too :evil:.

 

[markis10]

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

That's my view as well. QFF is heavily reliant on the QF network for its success.

3.4 Million seats were redeemed in 09, add to that the fact existing QFF customers who linked up with Woolies saw their travel grow by 11.7% and of the 600000 seats redemed in the 3.2M number in 09 where from new customers.

 

[Happy Trails]

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

NGCI elimanted queues! WTF, when did he last check in!

They tend to be amorphous huddles now, rather than queues as such. So technically he's right, sort of.

 

[connieguy]

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

Old news...

My comments were in relation to those of AJ at the Press Club, which were related to his earlier guidance of a $A500-550m QF group profit.

 

[harvyk]

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

A thought,

How does QFi account for FF points bookings \ upgrades? Most people I know save FF points for int travel rather than dom (but use dom to generate those points), could that have had an effect on QFi's bottom line?

 

[oz_mark]

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

3.4 Million seats were redeemed in 09, add to that the fact existing QFF customers who linked up with Woolies saw their travel grow by 11.7% and of the 600000 seats redemed in the 3.2M number in 09 where from new customers.

Keep weakening the QF network, and you keep weakening the proposition that is QFF.

Redeeming on JQ is just not the same :shock:

 

[kamchatsky]

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

Keep weakening the QF network, and you keep weakening the proposition that is QFF.

Redeeming on JQ is just not the same :shock:

But most general public (not us AFFers of course) would redeem it in JQ anyway.


Also you can still redeem QFF points on OW carriers.

 

[harvyk]

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

But most general public (not us AFFers of course) would redeem it in JQ anyway.

And they'd then complain that the service was not upto scratch or that they didn't realise that it was JQ, and they'd defect to another carrier...

 

[markis10]

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

My comments were in relation to those of AJ at the Press Club, which were related to his earlier guidance of a $A500-550m QF group profit.

Interesting selective quoting by you, and no your comments were not about the earlier guidance and I quote:

Interesting comment by AJ, during "Question Time", that the FF program made A$200m last year. That means the QF FFer profit offsets the A$200m loss on the QF International business

which would suggest the QF Domestic business and JQ are making the lion share of the groups profit.

What QFF profit was in FY10 is old news and as I mentioned, it was more than $200M, what they make this year will offset losses in other divisions but that has not yet be determined as far as QFF revenue goes, if we look at 1H results its clear it will be at least more than last year if we assume a doubling:

So if you compare 1H 2011 with FY2010 it does make you wonder why QF is getting the blame, to me it paints a poor picture for JQ!

 

[medhead]

So if you compare 1H 2011 with FY2010 it does make you wonder why QF is getting the blame, to me it paints a poor picture for JQ!

Indeed. That figure seems to compare the corresponding first halves. And JQ is not very impressive at all. 14% growth compare to 160% for QF, which I assume includes the minus from QFi.

Even worse if they have been expanding JQ over the last year and not expanding QF, which seems possible.

Even on gross numbers QF contributed more, but that is little more than a factoid without the capital comparison, I suppose.

 

[Awesom Andy]

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

Even worse if they have been expanding JQ over the last year and not expanding QF, which seems possible.

Even on gross numbers QF contributed more, but that is little more than a factoid without the capital comparison, I suppose.

JQ/3K introduced SIN-MEL and SIN-AKL in recent months, and the schedules have been extremely unreliable. SIN-AKL seems to be permanent on sales as well, so I can't imagine them making much money from that. The last time I was on it, *C was only 1/3 full (or should I say, 2/3 empty).

And, given that I go to the airport in SIN every week or 2, it's almost guaranteed that I'll see a 3K flight cancelled. 3K has also pulled some routes in recent times (e.g. to East Malaysia), so if anything, it looks like the shooting star is burning out.