Yes.What a shocker. 5,000 jobs gone. Routes axed including Perth-Singapore (which is pretty ridiculous for a so called national carrier). 50 aircraft to be sold or deferred delivery. The board and Joyce need to be sacked.
No.
The performance of the airline is unacceptable and unsustainable. The performance of the Board and Mr Joyce have been awesome. Sack everyone except the Board. That way it will reduce losses to ~$10m a year - a significant turnaround. It will also continue to invest in new air hostess attires to show their committment to better customer service.
Oh the new uniforms make a huge difference!
BRENDAN TREMBATH: The airline will defer delivery of eight Airbus A380-800s, the distinctive wide bodied double-deckers.
FRANK ROBERTS: We call them the dugong. When they're in the landing configuration they look like a dugong grazing on the bottom of the ocean.
BRENDAN TREMBATH: The Australian and International Pilots Association president, Nathan Safe, says passengers might like the interiors of the A380s, but the planes burn through too much fuel on longer legs.
NATHAN SAFE: They're a hopeless economic choice on the routes that we fly them, which is a 14 and 15 hour sectors across the Pacific. They're competing against 777s with half the fuel and carrying almost as many passengers. It's just an equation that you can't beat no matter how much you lower your other costs.
So whilst we welcome in isolation the fact that the older aircrafts are going, the sad part is there's no clear plan to introduce newer fuel efficient aircrafts to replace them.
Mr Borghetti says he opposes the government providing a debt guarantee to Qantas.
“We have earned our right to exist,” he said.
“If Australia is to prosper in the age of globalisation, then the age of entitlements needs to go.
“Nobody is entitled to a certain percentage of the market – you need to work hard to get that.”
Mr Borghetti says Virgin has contributed $11 billion to the Australian economy, bolstered the tourism industry through co-operation with state and federal tourism bodies, brought prices down while improving service delivery, and created jobs.
“Why would any government or opposition consider setting us back?” he said.
Borghetti getting stuck into them...
Get rid of the Sale Act but it's completely unreasonable to give a debt guarantee to a private company merely because management are incompetant and/or the competition is doing a better job.
Although what's the implication of a debt guarantee?
.... Joyce is a failure and should go now.
........I'm sure Borghetti is giggling like a school girl over at Virgin!
And the newly renovated management building on Bourke Rd looks spectacular too and should make an enormous difference
I can't see it being allowed go fail completely for those reasons, but I can certainly see it withering away over a period of time. That is, a slow but sure loss of international market share (already pretty much happened) and then a gradual loss of domestic market share as well.Realistically, there is no way the government will let Qantas fail. Even with all the tough talk on ending entitlements etc, it would be far too unpopular to let what many consider to be an icon of Australia to fall into a heap.
They are making changes to how you earn points in the air. It affects me as I only fly discount economy or economy so I end up earning much less points than before on the same leg of travel. They say it is a fairer program, I say it is the greater majority who fly economy who will earn less points and will have to wait much longer for that classic award fare. Getting the points use to sway me to fly Qantas previously, with these cuts I am better off flying with others now.
Full story at this link: http://www.qantas.com.au/fflyer/dyn/program/fairer-flying
And calculator here: https://www.qantas.com.au/fflyer/do/dyns/initialPointsEarned
For what it's worth, regarding mention of the newly renovated Bourke St office, I understand this building is leased from Cromwell Property Group (CMW) (which I hold in the SMSF). Qantas claim they are saving money due to the energy efficiency of the refurbishment.
And what are Cromwell claiming the advantage is for them?
Love to know how long it is until this 'energy claim' is paid back. The company won't be around in 10 years at this rate in order to save energy.
http://www.cromwell.com.au/_uploads/documents/CMW_Corporate_Profile_Dec_2013.pdfQantas Headquarters
SECTOR Office
LAND AREA 27,160 sqm
LETTABLE AREA 46,546 sqm
ACQUISITION DATE August 2010
MAJOR TENANT Qantas Airways Limited
BOOK VALUE $320.0 m
EXTERNAL VALUE $320.0 m (Dec*13)
OCCUPANCY 100.0%
CAP RATE 7.00%
WALE 17.6 years
NABERS ENERGY Under Tenant Control
NABERS WATER Under Tenant Control
Qantas and Cromwell partner
for a successful outcome
The newly expanded and refurbished
Qantas Global Headquarters at Mascot
in Sydney was officially opened by
Qantas CEO Alan Joyce and Cromwell
CEO Paul Weightman in January 2014.
The $131 million project, carried out over
a three year period, has transformed
the Cromwell-owned site into a
contemporary campus-style facility.
The refurbishment has enabled
Qantas to achieve cost efficiencies
by consolidating 3,500 staff into one
Global Headquarters and Operations
Centre, as well as overhaul the energy
efficiency of the facility.
Qantas was able to consolidate their
property footprint from seven buildings
to four, thereby improving the working
conditions and efficiency for employees.
The airline was also delivered $8.5
million annual savings via reduced
rental expense.
The refurbishment includes a number
of Environmentally Sustainable Design
elements that are expected to raise
the NABERS energy rating of the
asset from one and a half stars to five
stars. Foremost among these is one of
Australia’s largest trigeneration power
plants, which is expected to cut carbon
emissions by around 14,000 tonnes per
year.
Cromwell acquired the asset in July
2010 for approximately $143 million.
It is now estimated to be worth more
than $320 million and represents
approximately 15% of Cromwell’s total
portfolio.
Cromwell agreed to refurbish and
enlarge the asset to create a new
interconnected campus-style facility
and Qantas, committed to the vision of
the asset, extended their lease by ten
years to 2032.
Cromwell worked closely with Qantas
for more than a year to bring the project
to contract, and was instrumental in
delivering legal, financial and technical
strategies and solutions, as well as
the development of project briefs,
preparation of contract documentation
and contractor selection.
The Qantas Global Headquarters
transformation project perfectly
demonstrates the benefit of a long-term
relationship between a property owner
and management team working in
partnership with the tenant to deliver an
inspirational workplace.
Throughout the process, Cromwell has
applied an owner directed approach to
create a unique workplace environment
to significantly reduce occupancy
costs for Qantas, as well as increase
productivity and support creative
collaboration, while delivering value for
Cromwell securityholders
“It’s important that Qantas remains successful and properly funded and again that’s people,” Cowley says. “Alan Joyce is a strange man. I’ve had one of his top people come to see me. It was scary. He’s worried where Qantas is going or not going.
“It’ll be interesting to see where Alan Joyce finishes up. I think he’s a misfit.”
“I like Lachlan,” Cowley says. “He’s a nice man but he’s not a great businessman. He’s not a big and good decision-maker in my opinion.”
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?