QAN - Qantas Airways

[qldfrog]

More bad news for Qantas,
I haven't used Qantas for years.

Alarms will be sounding at Qantas, but not in the cockpit

It’s not as though Qantas can look at its latest result in the World Airline Awards and shrug its shoulders. Instead, it should roll up its sleeves.

www.theage.com.au

It seems that Qantas and its new chief executive, Vanessa Hudson, have been doing a lot of apologising lately. And so they should, with the latest World Airline Awards showing our national carrier’s decline from fifth in 2022, to 17th in 2023, to a new low of 24th in the latest results. When an airline descends that rapidly, alarms usually go off: not in the cockpit, in the boardroom.

The Skytrax World Airline Awards have been described as the Oscars of the aviation industry. So it’s not as though Qantas can look at this result and shrug its shoulders. Instead, it should roll up its sleeves.

To be honest, it would be good if the first thing you do when planning an international trip would NOT be: how to avoid flying Qantas...
This is our 2024 step 1.... and I have a Qantas ff card from the last century....

 

[rocket1172]

To be honest, it would be good if the first thing you do when planning an international trip would NOT be: how to avoid flying Qantas...
This is our 2024 step 1.... and I have a Qantas ff card from the last century....

Certainly sad.... Now they are going to acquire mid-life Q400 Dash 8 aircraft to get rid of the older ones... Unheard of... There was a time where Qantas would buy new aircraft and OTHER carriers would line up at the gate wanting our mid-life aircraft, but here we are.... Now that is a fine indication of the carriers health.

 

[qldfrog]

Certainly sad.... Now they are going to acquire mid-life Q400 Dash 8 aircraft to get rid of the older ones... Unheard of... There was a time where Qantas would buy new aircraft and OTHER carriers would line up at the gate wanting our mid-life aircraft, but here we are.... Now that is a fine indication of the carriers health.

I liked the time we were proud, "call Australia home" style and felt nearly back already when boarding in a European or Asian airport.
There is a place for a pride , national airline..and Qantas really pushed a lot to become so bad

 

[sptrawler]

I liked the time we were proud, "call Australia home" style and felt nearly back already when boarding in a European or Asian airport.
There is a place for a pride , national airline..and Qantas really pushed a lot to become so bad

Yes Allan Joyce certainly did a number on them, slash and burn from premium to budget, with a premium price.
Actually most things Australian are starting to get that feeling about them, WOW, COL, getting a tradie to come and fix something etc, maybe it is just winter coming on, dark clouds forming.
Proud to be Australian, is certainly losing its gloss, is there any wonder they can't get people to join the armed forces.
Come on summer.

 

[dyna]

Google : " The PM and Quantas " folks , for last night's ABC TV 7.30 Report with former AFR scribe , the irrepressible Joe Aston .
I've got his new book " The Chairman's Lounge " . Comes with a foreword by a certain Lilliputian sulking over a Guinness in his Dublin bolthole. ( Naah , just kidding . It's a cracker of a read though . Highly recommend it . )
.

 

[Garpal Gumnut]

Goyder's name winds through many of the companies being discussed on ASF atm, Qantas, WES, and WDS.

A common thread.

Joe Aston is the best columnist in Australia atm. and is missed at the AFR. Always replied to emails and a thorough gentleman. I hope he resumes a column somewhere.

gg

 

[Country Lad]

Google : " The PM and Quantas " folks , for last night's ABC TV 7.30 Report with former AFR scribe , the irrepressible Joe Aston .
I've got his new book " The Chairman's Lounge " . Comes with a foreword by a certain Lilliputian sulking over a Guinness in his Dublin bolthole. ( Naah , just kidding . It's a cracker of a read though . Highly recommend it . )
.

I missed the 7:30 report so thanks for the heads up. As a Qantas customer from the days of TAA and one of the inaugural members of Frequent fliers and that lounge and also friends of a couple of past senior pilots, I look forward to the results of Aston's research and his views on the demise of the brand.
I will have a look if I can buy it in the Qantas shop with my FF points.

 

[over9k]

Google : " The PM and Quantas " folks , for last night's ABC TV 7.30 Report with former AFR scribe , the irrepressible Joe Aston .
I've got his new book " The Chairman's Lounge " . Comes with a foreword by a certain Lilliputian sulking over a Guinness in his Dublin bolthole. ( Naah , just kidding . It's a cracker of a read though . Highly recommend it . )
.

The power of Qantas

Sarah Ferguson presents Australia's premier daily current affairs program, delivering agenda-setting public affairs journalism and interviews that hold the powerful to account. Plus political analysis from Laura Tingle.

www.abc.net.au

 

[Country Lad]

I will have a look if I can buy it in the Qantas shop with my FF points.

Before I buy Aston’s book I thought I would give my thoughts on the Chairman’s Lounge. Some of the dates are to the best of my failing memory. I was one of the early frequent flyer members, joining when it was novelty in 1987. I was flying some TAA but mainly Ansett.

Over the last couple of days I have spoken to friends who are still in the CL and also a friend who recently retires from the CL section of Qantas to confirm my impressions.

I was offered the CL membership around 1992 and needed it explained to me as I had not heard of it.

The Old Chairman’s Lounge

When I joined the Qantas objective of both the FF and CL was quite clear – to increase revenue and profits by providing benefits as an incentive for members to fly Qantas. In those days as I remember, few politicians were CL members, just the Federal and State Ministers and top public servants.

The main benefits for me was to be able to sit quietly waiting for departureand to access the lounges when travelling overseas. I must admit I did receive a few good perks. In the early days there was no point in asking for an upgrade because those were decided during check-in time and were quietly given when the lounge staff handed your boarding pass.

The More Recent Chairman’s Lounge

About half way through James Strong’s tenure it was noticeable change in composition and numbers of the members. It appeared to have more politicians and the way upgrades were handled changed.

I retired completely in late 2009 and lost the CL membership in 2011. From what I saw and have been told by more recent members is that it seems that it became obvious that Q was doing us a real favour and we should be very grateful. This started particularly around 2010 after Joyce was well and truly calling the shots. I can’t comment on how the allocation of upgrades changed except that I am told it appeared more difficult for those without perceived influence to receive them.

Albanese

The only way to describe the antics is dunb

As far as I know, there is no reason for Albo to ask for an upgrade. Apparently the system will automatically flag his booking and the staff would arrange an upgrade. If anything else was to be done it would simply be for the person doing the booking for him to phone the CL contact to say the PM has booked.

His son

Albo has admitted asking for his son’s membership because he became the PM's "plus one" after his marriage ended. Nonsense. Any CL member can bring a guest. If flying with Albo he would be treated the same as Albo so there is no need for him to be a member as his "plus one".

Qatar

Not only does that not pass the pub test as not being a favour, but it was not in Australia’s best interest. The only return for that favour is likely CL associated benefits.

It would appear that the system had changed from the original “don’t ask” for an upgrade to now insist on an upgrade” and be very grateful to, and bow down to Joyce for the gift and be prepared to give him a favour in return.

Joyce has corrupted what was a good “hand off” program.

It will be very interesting to see if the new Chair and CEO bring it back to the original concept without all the strings attached.

If anybody is interested there is a good unbiased description of the Chairman’s Lounge and the benefits here.

 

[frugal.rock]

Engine goes bang, emergency landing, possibly starts grass fire at Sydney Airport.

Grassfire breaks out at Sydney Airport following plane takeoff

www.9news.com.au

 

[mullokintyre]

QANTAS are up to their old tricks of screwing passengers for very penny.
Brisbane to Melbourne by air is about 1055 nautical miles, return flights from flight centre are as low as $171 just now.
And yet Brisbane to Mount isa, a distance of 941 Nautical miles costs anywhere from 850 to 1300 return.
The costs rae not the same, landing fees at mt Isa are Signifcantly cheaper than Melbourne.
And as in the case of the Longreach leg mentioned below, it can't be capacity if they have to offload baggage to keep within weight limitations.
No its just screwing buggery out of regional customers because thy can.
Mick

From ABC News

Every month outback grazier Sarah Acton loads her car with luggage and drives three hours with her son, William, to the nearest airport.

It is another two hours on a plane before the pair arrives in Brisbane from Mount Isa for his medical treatment.

Their most recent trip in late October cost "the price of an international trip" — it was more than $2,500 for two return tickets.
Rising costs and recent changes to flight schedules are frustrating many people in outback Queensland who feel they are at the mercy of the major airlines.

Online cost comparisons show flights between Mount Isa and Brisbane have increased by roughly $350 over the past two months.

Travellers can now expect to pay anywhere between $840 and $1,350 return, depending on what day of the week the flights are booked on and that is before any remote living discount is applied to eligible customers.
As if the flight costs were not enough, Ms Acton was annoyed to find she and her son were flying on a smaller Alliance plane leased by Qantas.

In a statement, Qantas confirmed flights to and from Mount Isa would use smaller aircraft until April 2025.

It said it was redeploying its Boeing 737s to "other markets" to support its fleet renewal and pilot training elsewhere.
In the western Queensland town of Longreach, where Qantas had its early roots, frustration is also growing among passengers who have been left waiting for luggage that did not arrive.

There have been numerous cases of Qantas leaving bags off planes due to weight restrictions and inclement weather.

Last month 38 bags were left behind on a flight from Brisbane to Longreach.
Regular flyer David Walker had his bags left behind on three separate occasions in the past few months.

It is the lack of transparency that annoys him most.

"It really comes down to communicating that's what's about to happen," he said.

" I think there'd be plenty of people who would at least ask to retrieve some things from checked-in luggage."

 

[sptrawler]

Interesting article.

Qantas Don't Have Spare Engines, Forced to Cancel Flights

Last week, a 19-year-old Qantas (QF) Boeing 737 experienced engine failure during takeoff in Sydney, triggering a grassfire at Sydney Airport (SYD). Pilots safely landed the aircraft, and no injuries were reported among passengers, crew, or ground staff.

aviationa2z.com

 

[mullokintyre]

In light of the post by @sptrawler above, I came across the following.
The Share buyback initiated by Allan Joyce for QANTAS is analysed by Chris Kenny in Evil Murdoch Press and is suggested that it may be more in the interest of bonus loving executives rather than in the interests of the company. The conclusion probably relates to many companies and their share buybacks, but more so if the "repurposing" of capital then causes issues down the track.

On November 8, 2024, a Qantas Boeing 737 suffered an engine failure during takeoff at Sydney Airport. Disaster was narrowly averted, thanks to the exceptional skill of the pilot and crew. This incident, however, sparked a storm of criticism around Qantas’s reluctance to renew its ageing fleet.
The aircraft was 19 years old, nearing its operational “life limit”. This revelation paints a stark picture of a national carrier that may have neglected safety in favour of short-term shareholder returns.

This critique is not new, but the engine failure incident has thrust it into the national consciousness, reigniting debates around the practice of share buybacks commonly used by Qantas and the wider corporate world.
When individuals accept a position as directors, they pledge to act in the company’s best interests. This is a cornerstone of corporate law worldwide. However, this duty is frequently misinterpreted and often conflated with acting in the best interests of shareholders. Shareholders are not the company, and they do not share the same interests. This confusion is not trivial – it has profound implications, particularly when a board authorises share buybacks that prioritise immediate shareholder returns at the expense of the company’s long-term viability.

Share buybacks provide a vivid illustration of this misalignment. When a board chooses to repurchase shares, it boosts metrics such as earnings per share and stock price. This may satisfy investors and inflate executive bonuses, but it comes at a cost: less capital is available for investment in critical infrastructure, research and development and safety.

A share buyback reduces the number of outstanding shares on the market. This drives up EPS – a key metric tied to executive compensation – and puts cash directly into the hands of shareholders.
Under former chief executive Alan Joyce, Qantas embarked on an aggressive program of share buybacks. Between 2015 and 2019, the airline spent nearly $2bn repurchasing its own shares. While this buoyed the share price and enriched shareholders, it coincided with a stark increase in the average age of its fleet, from under eight years in 2015 to nearly 15 years by 2022.

Compared to competitors such as Singapore Airlines (average fleet age of 6.9 years) and Emirates (8.9 years), Qantas’s fleet is significantly older, which translates to higher maintenance costs, lower fuel efficiency and diminished customer satisfaction.

Critics argue that Qantas’s capital allocation decisions reflected a preference for financial engineering over operational excellence during this period.

The alignment between CEO payments and share buybacks is critical to understanding the issue. Executive compensation often hinges on financial metrics such as EPS and share price, which are directly influenced by buybacks. For a CEO, authorising buybacks can lead to an immediate executive bonus, even if the company’s long-term interests are compromised.

In the case of Qantas, Joyce’s remuneration package heavily emphasised financial performance. Each buyback not only enriched shareholders but also bolstered Joyce’s personal compensation. This alignment of incentives underscores how buybacks can create conflicts of interest for corporate leaders, prioritising short-term gains over strategic imperatives such as fleet renewal and workforce investment.
The Qantas example is far from isolated. Across industries, companies have used buybacks to bolster financial metrics, often at the expense of long-term sustainability. Boeing’s pre-pandemic focus on buybacks, which contributed to underinvestment in safety and quality, is another high-profile case. Similarly, General Electric’s aggressive buybacks in the 2000s left the company over-leveraged and vulnerable to market shifts.

When companies divert cash reserves or take on debt to fund buybacks, they often forgo critical investments in innovation, infrastructure or employee development. This trade-off can erode a company’s competitive position and leave it ill-prepared for economic downturns or industry disruptions.

The hard questions

The Qantas engine failure raises urgent questions about corporate governance and fiduciary responsibility:

• Did the board discharge its fiduciary duty by prioritising shareholder interests over the long-term viability of Qantas?

• Did the board put monetary returns for shareholders ahead of safety and even threaten the lives of its customers and staff?

• Does the board that approved Qantas’s buybacks bear legal responsibility for passenger and staff safety henceforth?

• Should the Australian government recognise the inherent conflict of interest in share buybacks and ban them?

As the dust settles on the Qantas engine failure incident, these questions demand answers – not just from the airline but from policymakers, regulators and corporate Australia as a whole.

Mick