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

[serfty]

reading what AJ said, the earn rate will change .. "more rewarding for frequent flyers" i believe the wording was

I see several possibilties as to the meaning of this.

Two that stand out are:

"Saver" fares biting the dust with "flexi" fares taking over at Full Econ SC's &

The JQ structure where either full econ SC's are earned or not!

Only conjecture ....

 

[anat0l]

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.....

Can someone remember that Ansett also cut most of its international routes and was almost a purely domestic carrier before it collapsed?

 

[oz_mark]

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

Can someone remember that Ansett also cut most of its international routes and was almost a purely domestic carrier before it collapsed?

I don't recall Ansett having much of an international network to begin with.

 

[markis10]

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

I don't recall Ansett having much of an international network to begin with.

Not with only two 744s, they had HKG, and KIX when it opened as well as DPS, they did try Seoul, Taipei and Kuala Lumpur for a short time.

 

[notzac]

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

Not with only two 744s, they had HKG, and KIX when it opened as well as DPS, they did try Seoul, Taipei and Kuala Lumpur for a short time.

Is there any reason they never went to the US? Or was that UA's doing?

 

[Mrmaxwell]

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

Perfect OT accompaniment to this thread...I was surprised by how satisfying that was!

132 for me.

 

[dajop]

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

Not with only two 744s, they had HKG, and KIX when it opened as well as DPS, they did try Seoul, Taipei and Kuala Lumpur for a short time.

As well as Jakarta. The Asian Economic Crisis in 1997 really killed off these services (Seoul, TPE, KUL, CGK) and any such aspirations.

Is there any reason they never went to the US? Or was that UA's doing?

NZ's doing? Before the collapse of AN, NZ did SYD-LAX non stop too.

Just thinking could the heart of QFi's woes be that for years the airline had a very lax approach (pardon the pun)as it was being carried by the cosy duopoly on between Australia and the US?

 

[serfty]

134 at the second go .. now back to business ...

Certainly a duopoly with the "Two Airline System".

Interesting times are afoot ... I will be looking closely at the domestic changes to be announced tomorrow.

Now, as a contrast to domestic fare, the last Air Ticket I purchased was for AKL-MEL-AKL at a cost of ~AU$230 all up. This was on Air NZ for seat only. I'll pay more if I want to check bags (~$15 per segment) or want to Check bags and eat/drink (~$38 per segment).

There is no way Qantas can match this with their current structure.

 

[Kendall Roy]

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

reading what AJ said, the earn rate will change .. "more rewarding for frequent flyers" i believe the wording was

Anyone want to wager a rise in redemption points inflation?

 

[TonyHancock]

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

Anyone want to wager a rise in redemption points inflation?

Inevitable when QF enhanced gold status to earn 75% bonus, and increased F, J, and Y+ bonus. Something has to give.

 

[Awesom Andy]

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

I guess "more rewarding for frequent flyers" can also mean a reduction in SC earn rates. Frequent flyers will be rewarded with less crowded lounges, and those who don't make the cut anymore are no longer regarded as frequent flyers.

 

[dajop]

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

I guess "more rewarding for frequent flyers" can also mean a reduction in SC earn rates. Frequent flyers will be rewarded with less crowded lounges, and those who don't make the cut anymore are no longer regarded as frequent flyers.

I didn't hear the speech but post 44 indicated this wording:

"Tomorrow we will be announcing our now domestic fare structure . . . which will give more benefit to our frequent flyers"

A difference between more rewarding and "give more benefit"?

 

[samh004]

Having missed out on all the fun today and only now having a read it certainly seems like AJ's blaming old wages for the unprofitability of QFi, which is to be expected.

While I don't agree with shelving all pilots and engineers on the old pay, such as jb747 for instance, I do see that being thepriblem going forward. It's clear that's the costs blackhole.

Luckily it certainly seems QF is turning a profit in places that isn't JQ, so they're not shelving the brand, but can't just continue to make a loss and expect other areas of the business to prop it up.

That being said though, I don't believe JQ is doing everything on it's own and deserves to show a little respect for how without QF, it wouldn't be where it is.

I don't think AJ's the best, but think he'll do the right thing for the business and don't think the QF brand is going anywhere. Though it may need to fight to prove it's worth internationally.

I look forward to fare restructuring tomorrow.

 

[Mrmaxwell]

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

While I don't agree with shelving all pilots and engineers on the old pay, such as jb747 for instance, I do see that being thepriblem going forward. It's clear that's the costs blackhole.

I don't buy that the sole reason for QFi running at a $200 million loss is due to high salaries. I also don't buy engineers and pilots being told "sorry we can only pay you half of what the old salary was because SQ give much better service, EK have newer aircraft and our management team have made some bad decisions in the past and will likely continue to do so.

You become the safest airline in the world by paying the best for the best. Simple.

I don't think AJ's the best, but think he'll do the right thing for the business and don't think the QF brand is going anywhere. Though it may need to fight to prove it's worth internationally.

If you think moving Australian jobs offshore is right for business then wait until a QF plane falls out of the sky, a 15% drop in market share will seem like a drop in the ocean (no pun intended).

There are two things that must NEVER leave Australia: the manufacturing of the Aussie meat pie and the maintenance/flying of Qantas aircraft.

 

[VHOEJ]

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

Interesting speech and interesting reaction. In saying that, unions are in cuckoo land - they want everything to stay in Australia, job security etc but the company is losing money by doing it. The unions would get a lot more sympathy if they actually made proposals to help fix the problems the airline faces. In the end they will lose the war because it looks like Qantasia is going to be set up so jobs are going to be lost anyway.

 

[Sprucegoose]

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

I guess "more rewarding for frequent flyers" can also mean a reduction in SC earn rates. Frequent flyers will be rewarded with less crowded lounges, and those who don't make the cut anymore are no longer regarded as frequent flyers.

The word 'enhancement' scares the bejesus out of me these days!!!

 

[Oneworldplus2]

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

You become the safest airline in the world by paying the best for the best. Simple.

Hold on...l've never heard any pilot say, l'm leaving ...[EK,SQ,AA,BA] for QF because they pay more...

 

[Mrmaxwell]

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

Here is the full 58min National Press Club speech + questions for those who missed it;

YouTube - ‪National Press Club Address - Alan Joyce Qantas CEO‬‏

 

[elbarto]

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

Interesting comments here about what QF has up it's sleeve come August 24.

Here are my theories:

• Joint Venture will be with MH and will include code sharing and delve into areas such as joint procurement. Could also involve and equity stake in MH and will be where the 'Qantas Know-how' is going on the road too. I do believe QF & MH already have an MX joint venture for A380s.
• 787s destined for JQ will come to QF first so that the aging 767s can be retired.
• Change in A/C type for DFW
• Further changes to the FF program, hopefully a reversal due to negative feedback, but will be wound up in marketing spin as QF doing something good for its customers.

One thing AJ notes in his speech (that I'm listening too as I'm writing this) is that Qantas is the only investment grade rated airline in the world. I have to wonder why the share price has dipped 44% since his appointment. The only things I can think of that have impacted the share price are:

• Rising jet fuel prices, which have to have been offset by fuel surcharges and hedging
• Financial crisis impacting on demand and yields. However, traffic numbers and revenue per passenger has been increasing since then. Whilst I can't determine if costs per passenger have increased or decreased, I would argue that they have decreased. The share price should surely reflect some kind of upward trend, but simply doesn't.
• Management have been reliant on the existing customer base have have not been in anyway pro-active in doing anything to keep them. By this I mean, the average joe, who is price sensitive, who has seen their FF benefits removed. I have no evidence on corporate accounts.
• International operations - I don't get it. Over the past few months I have priced trips from LHR to both SIN and SYD and on all occasions QF are substantially more then the competition. In my experience with QF internationally, the planes have been consistently full, so where these losses are coming from are any ones guess.

Perhaps I'm missing something?

 

[notzac]

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

You become the safest airline in the world by paying the best for the best. Simple.

Which in turn causes the following problem..

• International operations - I don't get it. Over the past few months I have priced trips from LHR to both SIN and SYD and on all occasions QF are substantially more then the competition.

The market simply isn't prepared to pay the "Qantas tax". Many, many companies and government agencies, (my employer included), have Lowest Logical Fare or Best Fare of Day policies. We "prefer" to fly with QF, but only when it's the cheapest. And it usually isn't.

There are two things that must NEVER leave Australia: the manufacturing of the Aussie meat pie and the maintenance/flying of Qantas aircraft.

The latter has already left our shores to some extent, and it wouldn't surprise me greatly if the former has as well.