The Qantas brand is safe

[RooFlyer]

Never say I don't point to positive stories on Qantas, like this one in the Oz on-line (probably paywalled, sorry):

Brand Qantas will survive – and thrive

He basically says everyone will get over the present woes and the brand will take-off again. Probably right, in the long run.

And you can trust this guy, because he knows what he is talking about - just read what he writes:

But you should listen to my point of view because it differs with those of the negative majority on one key caveat: I actually know what I am talking about.

OK, then

He warms up:

Brands, despite what you might have read recently, aren’t these vulnerable, ephemeral things that lose favour, then fortune, in the blink of an eye. Quite the opposite. Big brands are tough old things that ride out short-term sensationalism every time. Plenty of people predicted the end of the VW brand after the “Dieselgate” scandal a decade ago, for example. The company paid a high price in fines but the VW brand moved on and remains one of the most popular and profitable car brands on the planet.

But then this:

That continued preference is bolstered by Qantas’s enormous loyalty program. These days you can argue that the company is a national loyalty business that also operates an airline. Officially the Qantas Club operates for customer loyalty. Loyalty schemes are a brilliant way to generate data, extend a company’s business into new sectors and maintain future sales.

Qantas Club acts for customer loyalty? You could possibly put it that way I guess; but then:

For the millions of Aussies that hold points in the Qantas Club, their continued patronage is largely guaranteed.

Remember, this guy knows what he's talking about, except maybe when it comes to Qantas Frequent Flyer. And:

The final reason the Qantas brand is likely to emerge unscathed from its current crisis is that the main source of its trouble has already disappeared forever. Alan Joyce has been incredibly demonised over this past month.

Of course, Joyce hasn't disappeared forever. His shadow, and bonus, will be hanging over the AGM in November like a bad smell.

Have a read of the article, and cringe - and see that The Oz's sub editors need to go to the AFF Grammar Thread:

That continued preference is bolstered by Qantas’s enormous loyalty program.

 

[Scarlett]

He’s right though…

 

[cove]

What is wrong with cleaning the planes properly, flying on time and serving edible food. None of this should be too hard.
Would be good to have your luggage come out on the carousel within a reasonable time.
Instead they have engaged Boston Consulting Group.

 

[Catweazle]

True, and many of AFFers are regular flyers who know their product well based on personal experience.

However, what I can't stand is people outside of AFF who rarely fly, have one buggered-up flight then remain determined never to fly again, and troll social media all over the place afterwards as if they were the experts after one poor experience.

People love trolling the negative reviews outside of AFF or FT. Where's all the positivity gone?

 

[AustraliaPoochie]

What is wrong with cleaning the planes properly, flying on time and serving edible food. None of this should be too hard.
Would be good to have your luggage come out on the carousel within a reasonable time.
Instead they have engaged Boston Consulting Group.

Re: cleaning the planes, having planes on standby in case of something breaks down and being able to pull a spare plane to take off on time, etc, it all costs them too much to do all that!
Actually, the news says that they both have had a relationship BCG and QF already, so are "only" deepening the relationship, meaning also paying BCG more.
===
***Due to the late arrival of your incoming aircraft, we expect boarding of QF flight xx_ to be delayed by 30 mins...***

 

[kangarooflyer88]

The brand will survive if the people leading the organization put in the effort to revitalize its image. Qantas has some good things going for it: lounges, a decent frequent flyer program and goodwill from politicians vis-a-vis the Chairman's Club. By the way, why is it called the Chairman's Club? Seems a bit politically incorrect these days, shouldn't it be the Chairperons's Club? Or maybe the Dick Goyder Club since he is the current Chairman?

-RooFlyer88

 

[MARTINE]

Would be good to have your luggage come out on the carousel within a reasonable time.
Instead they have engaged Boston Consulting Group.

… who must be the most expensive baggage handlers on the planet… Oscar Wilde’s observation that the only thing worse than being talked about - is not being talked about - means they are getting marketing airtime in spades and of course QF will survive given the symbiotic homeostasis between Chairmans Club and politicians, short memories and limited competition domestically….

 

[dylarr]

By the way, why is it called the Chairman's Club?

It isn't - there's no such thing as the Chairman's Club

It's called the Chairman's Lounge.

 

[kangarooflyer88]

It isn't - there's no such thing as the Chairman's Club

It's called the Chairman's Lounge.

In which case it should be referred to as Dick Goyder's Lounge since he remains the Chairman of the board at Qantas.

 

[AustraliaPoochie]

Its the Chairman's Lounge, as its by invite only, and for the Chairman of any organisation that QF feels is worth(y).
Even if you are high up in your orgnisation, you won't make it in, as its by invite only.
Tho, they must bend the rules to their benefit, seeing that AA's son got the invite.
Maybe who ever made the decision AA's was worthy, probaby got his bum kicked.

 

[MARTINE]

It isn't - there's no such thing as the Chairman's Club

It's called the Chairman's Lounge.

I refer to it as ‘Club’ because it describes the intent - don't call us we’ll call you (when it suits)
Edited to add: my reason for saying is that politicians who can impact decisions about the airline are ‘called’ which helps survival in the long run (without a brand it cant be safe or otherwise)

 

[Damian W]

The brand will survive if the people leading the organization put in the effort to revitalize its image.

Significant effort needs to be placed in the most important aspect: the customer. It's been disappointing to watch things deteriorate significantly more over the last 3 years.

 

[Quickstatus]

I think if everyone went BFOD, QF will still be a major player in the aviation market

 

[Happy Dude]

He's right in that there's a lot of rusted on's, but many don't have a choice either and many will use them simply because is easier. All in those groups are not particularly sensitive to price and as they're probably infrequent flyers, tolerate being shafted or fail to maintain the rage.

But ultimately, it's the government that ensures QF survives, no matter what, even if that means running a protection racket and using vast sums of public money to keep it afloat.

I do question the statement in the article about Joyce creating a profitable airline. As a shareholder, I've not seen a dividend but I've seen plenty of graphs explaining why. Using huge loses to offset tax in a few good years is hardly "profitable".

 

[MonteCristo]

The Qantas brand isn't "safe". It is at risk. If it continues to be a poor value proposition over the longer term, people will eventually give up and put their money elsewhere (assuming there is a consistently better alternative).

What it has going is, I feel, that most people *want* their national carrier to do well. They don't want to hate the company. They are willing to give it a chance.

But eventually people will turn away if they continue to be treated with contempt by management, who cut service levels and enact policies that are against customers' interests.

 

[AustraliaPoochie]

VA & VFF is quite good, granted they don't go far with their own planes, except CNS - HND, other than that, have to rely on patners..
ZL is starting their FF soon, once they get more planes, they might be very good, who knows their FF system might be be better than the current 2, of course they also do not have any international flights of their own, but they are already in a liaison with DL, who knows, ZL might even join ST.
Pushka's downgrade, and the one with the Vietnam Veteran, does leave a sour taste in the mouth, even if its a done thing with the airlines, but still, its a bad impression, of what they (QF) did in these 2 cases.
BUT, probably, nothing will change.
Its not like as if QF/QFF are going to close their outsourced call center and bring them back to Aust, and call them the QF/QFF call centre.

 

[aikman]

Just because the media is telling us that the brand is 'at risk' doesn't mean that customers are abandoning Qantas in any material amount. Sure, there's a handful of customers interviewed on news reports who say they will never fly Qantas again but their views probably represent 0.1% of the flying population. I don't see any evidence of capacity reductions or of fare discounting to fill seats and no, I don't consider a $50 discount on a return fare to Points Club members as discounting. I don't think there's a lag effect either. Qantas hasn't been a customer friendly company for years yet it still maintains it's market share and to this day can comfortably sustain a starting price of $760 for a one way MEL-SYD business class seat with no discounting required.

 

[jrfsp]

Well the brand just took another hit this morning

 

[RooFlyer]

Just because the media is telling us that the brand is 'at risk' doesn't mean that customers are abandoning Qantas in any material amount. Sure, there's a handful of customers interviewed on news reports who say they will never fly Qantas again but their views probably represent 0.1% of the flying population. I don't see any evidence of capacity reductions or of fare discounting to fill seats and no, I don't consider a $50 discount on a return fare to Points Club members as discounting. I don't think there's a lag effect either. Qantas hasn't been a customer friendly company for years yet it still maintains it's market share and to this day can comfortably sustain a starting price of $760 for a one way MEL-SYD business class seat with no discounting required.

As I mentioned in the OP, I agree with the conclusion of piece in the paper. Qantas will take a hit to loyalty, but people will get over it, but like anyone who stuffs up big time, the thing may be forgiven, but won't be forgotten by many.

Heck, even I have a couple of international flights booked with them - done mainly because my choice at the time was constrained, but I'm looking forward to the airline trying to redeem itself by being more generous to its customers as soon as it can get the system changes in place.

 

[PERLHR]

Well I'm taking them "down the back" from Perth to Singapore and back next month. I'll.be in row 55.....I expect great things!!