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

[MatF]

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

Hi guys,

I'm a bit time poor at the moment. Is there a summary somewhere?


Cheers,
Mat.

 

[Danger]

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

Hi guys,

I'm a bit time poor at the moment. Is there a summary somewhere?


Cheers,
Mat.

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".

 

[clifford]

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

Yes, but could you trust someone that sounds like Bob Geldof?

 

[JohnK]

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

A couple of points from me

- Jetstar could not make a profit without QF backing.

- If QF morphs further into JQ then I will look for alternatives....

 

[connieguy]

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

Well that's probably the status bonus increase which has already happened.

There was no Status bonus points increase for WPs that fly -Y, a capped Loyalty bonus points scheme that cuts out at 2,000 SCs and PG qualification that moved from 2,100 SCs to 2,400 SCs. :evil: For me it was mostly all negative.

Lets see what QF reveals tomorrow????

 

[Mrmaxwell]

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

After watching a replay of today's speech, it is apparent AJ has a bee in his bonnet about QFi and its apparent high cost base (pilots/engineers).

He seems to allude the $200 million loss by QFi will be reversed by simply moving these highly paid (and highly skilled) jobs offshore and/or negotiating lower salaries. No mention of using the wrong aircraft (767/747), no mention of improving routes and the aircraft on those routes and no mention of better fare structures.

He also speaks of QFi as if it is a separate entity, while harping on the success of QF overall, including the QF reputation, FF program and Jetstar.

Does he not understand how intricately ALL parts of QF are linked? Does he think FF members only want to use points to purchase SYD-MEL flights and coffee machines?

Does he think the success of JQ is because of the product itself and NOT because of many loyal QF customers not having a choice on many routes or QF mainline funding the entire operation of JQ in the first place?

Does he not understand the worldwide reputation of QF is largely a result of QFi?

Besides his very average ability at making a speech in the first place, I would like a CEO to project confidence and understanding in his own company and its working. In today's speech I saw ignorance and aloofness.

Fail.

 

[connieguy]

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

After watching a replay of today's speech.....I saw ignorance and aloofness.

Yup.

He sure laid the ground work for some not so nice and exciting "Enhancements" to follow. He also seems to say that as Aussies love Qantas as their own (which we do!), he expects us to stand by and give approval as he starts the cuts and changes that he says needs to be done to save OUR Qantas from itself and following Ansett down the drain.

We have been warned that the worst is yet to come.

 

[samiam]

And not any sign of the AFF5 being invited to lunch, to gauge their feedback on tomorrow's 'announcement'.

 

[TonyHancock]

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

Yes, but could you trust someone that sounds like Bob Geldof?

I think Bob Geldof sounds a lot better!

 

[connieguy]

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

And not any sign of the AFF5 being invited to lunch, to gauge their feedback on tomorrow's 'announcement'.

Wonder if AusBT will break the embargo and post the changes first?

 

[dajop]

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

"Our task must be to transition a great airline to a great business"

Uh oh. Heard that one before. Late 1990s. The tagline to AN's business recovery plan after Rod Eddington took over to lead the business - "Great Airline, Great Business".

 

[Deleted User]

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

this is the solution...

Play Not my fault - Free Games on Pictogame

 

[connieguy]

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

Uh oh. Heard that one before. Late 1990s. The tagline to AN's business recovery plan after Rod Eddington took over to lead the business - "Great Airline, Great Business".

As far as claiming profits that only exists in the books and not in the shareholder dividend payments:

Investors - Dividend History

AJ has a LOT of work to do to turn that around. Maybe start by firing the creative accountants and focus on delivering a respectable dividend??? Seems since he took the reins in mid 2008,

Incoming Qantas boss Alan Joyce gets Peter Gregg to resign | thetelegraph.com.au

dividends have been a bit on the scarce and far between side.

 

[notzac]

Re: Qantas CEO speech - profit update, RR settlement, Int Route changes?

Alan Joyce at National Press Club:

• "We'll be working with our alliance partners more closely . . . including more joint ventures."

Thinking out loud here; would the SYD-DFW route work better if operated by a 772ER? Say, one operated by AA?

 

[anat0l]

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

this is the solution...

Play Not my fault - Free Games on Pictogame

I got 126, which I thought wasn't bad first time, tired, using a trackpad (not a real mouse).

This is off-topic now, though.

 

[Deleted User]

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

This is off-topic now, though.

Sorry..... :-(

 

[djfuzz]

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

He seems to allude the $200 million loss by QFi will be reversed by simply moving these highly paid (and highly skilled) jobs offshore and/or negotiating lower salaries. No mention of using the wrong aircraft (767/747), no mention of improving routes and the aircraft on those routes and no mention of better fare structures.

As you note, I thought this was a pretty significant oversimplification of the problem. Mistakes have been made in fleet renewal that no one even wants to acknowledge, let along try to overcome, and despite the backpatting a high cost-base is not QFi's only problem viz its competitors - providing a competitive product is just as important to attracting greater revenue, and that has to be one of the key factors that has led to QF leaking its supposedly 'indestructible' market share.

He also speaks of QFi as if it is a separate entity, while harping on the success of QF overall, including the QF reputation, FF program and Jetstar.

Does he not understand how intricately ALL parts of QF are linked? Does he think FF members only want to use points to purchase SYD-MEL flights and coffee machines?

Does he think the success of JQ is because of the product itself and NOT because of many loyal QF customers not having a choice on many routes or QF mainline funding the entire operation of JQ in the first place?

Does he not understand the worldwide reputation of QF is largely a result of QFi?

I find it somewhat ironic that QFi cops all this flack, given that it was the original, and still is the core, business of the company - way before JQ, QF domestic or QFF (or Jetset Travel, which I note appears to be a bit of a dog). FF schemes, LCCs and all manner of other initiatives may be great to pad out the portfolio, but if he and his team stuck to their knitting and focused on the core business maybe things wouldn't appear to be so dire? On the other hand, they should be commended for striking a balance that delivers a profit for the company as a whole; but in doing so, they need t o recognise some parts of the portfolio aren't going to deliver the same return all the time - which is no reason to dump them either.

Anyway, bring on tomorrow's next round of enhancements. :-|

 

[notzac]

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

Sorry..... :-(

I got 189!

 

[orac]

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

Anyway, bring on tomorrow's next round of enhancements. :-|

We need to be careful what we wish for

 

[docjames]

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

I get the feeling the trunk routes will be nonstop from Australia only, with no onward flights barring a couple of exceptions.Sin-lhr and maybe lax-JFK will survive as QFi, but others (hkg-lhr, bkk-lhr) will probably fall over. I wonder if qf will try and create a raft of destinations with Onward flights on other (mostly oneworld) carriers.Opens up kul, shanghai, Nrt etc to traffic growth, but the don't have to gill the aircraft beyond the first stop.Think about LH and the multitude of EU carriers that used to fly to aus. Most now fly to asia and hdve others carry pax onward to Australia. Now think in reverse.....