QAN - Qantas Airways

[McLovin]

QAN breaking the buck... just imagine the media coming up with all sorts of headlines like "Low flying object" and "QAN crashes to the ground".

People are running scared about the prospect of a cap raising?

You're the king of the pun, skc!

How about...

Investors' ears pop as Qantas plunges.

Qantas shareholders reach for the oxygen mask.

There must be something on the radar coming up. Cap raising, another strike.

 

[Gundini]

I flew with Qantas for many years as an overpaid Trolley Dolly. I am not suprised at the companies slow death. Unions have killed this airline, along with lots of middle management and terrible mis-management. I had a truck load of shares that I sold after I left for around $5.50 as blind Freddy could see the writting on the wall.

I never thought I would see the day that I would buy into an airline business, let alone QF. But @ .98c I pulled the trigger. Still not quite sure why, maybe nostalgia value, very sad really. Will be keeping a close stop.

 

[matty77]

Why is it assumed that because the airline is paying less to service its planes therefore it has to be inferior service? Maybe Qantas doesn't want to pay the ridiculous wages in Australia that some so called engineers get paid. Since when did Australia become so good at being engineers compared to anywhere else?

It really is a pathetic attempt to protect peoples jobs who are probably overpaid and under skilled. Oh the joy of unions.

You know Qantas is like Mitsubishi in Adelaide in a way, everyone thinking they "have" to survive, which is a load of crap, if they cant compete in the international market then they have no place in being there. If they have to move work off shore to compete then so be it.

What is the point in having an airline that cant afford to fly but has the best serviced planes in the world, when you have another airline paying half the costs and no service issues?

I believe it has always been a plan from the start to convert it to Jetstar... anyone taken a look at Singapore Airport lately... or is it Jetstar Airport.. I think you get the point.

By the way, I fly both Qantas, Jetstar and Virgin for work and prefer Virgin by a mile, such better customer service than either of the others, its a pity they dont have more flights on at convenient times.

I will be happy to see the ass end of Qantas, who were ripping us off for years before Virgin came in and actually injected some competition into the market. At least now everyone can afford to fly, not just the rich.

Goodbye you sad airline.

 

[skc]

How about...

Investors' ears pop as Qantas plunges.

Qantas shareholders reach for the oxygen mask.

There must be something on the radar coming up. Cap raising, another strike.

Your lines gave me more ideas.

Low altitude makes Qantas investors sick.

The crashing Kangaroo.

What's that skippy? Qantas shares have fallen down the well?

Alan Joyce: "I don't want to call Australia home (of my cost base)."

 

[nulla nulla]

Institutional investors have been very quiet. Some are probably selling, someone is buying. At some point it will stabilise. It wouldn't surprise me to see pressure brought to bear for Joyce to go.

 

[CanOz]

Qantas has cancelled an order for something like 30 Boeing 787 Dreamliners...

CanOz

 

[matty77]

Dead Duck Flying.

 

[Julia]

Qantas has cancelled an order for something like 30 Boeing 787 Dreamliners...

CanOz

Alan Joyce was interviewed on "The World Today". He's trying hard to be upbeat. Re the above cancellation, that was 30 out of a previous 100, if I recall properly what he said.

 

[McLovin]

Qantas has really shot itself in the foot with this deal, if the details are correct. They have pretty much admitted defeat to Emirates. I'm not sure what the benefit is to Qantas. Emirates have such a huge network that the real risk is that if everyone gets put onto Qantas flights to Dubair and then has to transfer at Dubai on to an Emirates flight for onward travel to Europe, over the long run Qantas will just get cut out of the game. Luckily for Qantas, Emirates has as a sucky a frequent flyer program as Qantas does so it's unlikely they will lose too many FF's, yet.

Am I the only one who thinks Qantas got the raw end of the stick in replacing Dixon with Joyce, instead of Borghetti?

http://www.afr.com/p/business/companies/qantas_lands_alliance_with_emirates_wsKp6UXOYitOkUSZcjqKRL#

 

[matty77]

I would agree I don't think it is as "sweet" as it has been perceived.

And the little umpur-lumpar Joyce smiling the whole time makes my stomach turn

Tell me exactly how Q will make more money from this?

 

[oldblue]

Thank goodness you didn't write "oompa loompa". Charlie from the Chocolate Factory would not have been amused!

But seriously, isn't QAN at the point where desperate times demand desperate measures? I suppose the other alternative would have been to try to work its way back into being a quality airline with quality service, but that opportunity has probably already passed.

 

[McLovin]

Tell me exactly how Q will make more money from this?

I could take a stab at it.

Currently, the only way to get to Europe on QF is through Heathrow (or Frankfurt but not really). This is a major PITA, anyone who travels through Europe will tell you you don't want to transit LHR. Not only are the queues horrendous to transit but you are almost always doubling back on your route. Emirates (EK) will provide QF with a staging post relatively close to Europe to drop passengers right into where they want to go. EK has a crazy big network in Europe (they even fly to places like Birmingham!).

There will be 98 flights Oz-Dubai/week. Emirates will operate 84 of them. If I book on QF flight number and end up on EK metal and I don't mind the service, why will I bother going back to QF? Unless they are pooling revenue (which they may be) ala the current JSA with BA on the Kangaroo Route, QF is cut out and doesn't get my business anymore. Emirates is also significantly cheaper than QF, no idea what that will mean for QF. I imagine the ACCC will be looking closely at that.

 

[Gringotts Bank]

Branson should take over.

Joyce has been a disaster.

 

[skc]

There will be 98 flights Oz-Dubai/week. Emirates will operate 84 of them. If I book on QF flight number and end up on EK metal and I don't mind the service, why will I bother going back to QF? Emirates is also significantly cheaper than QF, no idea what that will mean for QF. I imagine the ACCC will be looking closely at that.

I think you nailed it there. I'd fly EK any day over QF. Better food, newer aircrafts, better service AND better looking hostess.

Now... can someone explain to me why VAH is taking a hammering despite rising 8% on the day of its result AND with Etihad buying?

 

[Bintang]

I think you nailed it there. I'd fly EK any day over QF. Better food, newer aircrafts, better service AND better looking hostess.

I don't know about EK but within SE Asia I regularly choose SQ or Garuda over Qantas. I used to thumb my nose at Garuda but they have lifted their game and must now be serious competition for Qantas. For example, just this weekend I tried to make an online booking for 5 business class return tickets with Qantas (from Jakarta) but this morning I have cancelled and booked with Garuda instead. Here is the reason why:

The Qantas reservations were initally accepted but later I received an email telling me that my credit card had not been charged because I first needed to go to a Qantas office in Jakarta and show my credit card. The total fare of USD17,564 would first be converted to Indonesian rupiah at 'the airline's exchange rate' (i.e rip-off rate) before getting charged to my Australian visa card, which would incur further exchange rate losses on conversion back to Australian dollars. Apart from this I was not over-joyed about having to spend 2 hours in Jakarta traffic getting from my place of work to the Qantas office and back within their inconvenient opening hours of 8:30am to 5:00pm Monday to Friday.

So instead I visited to the Garuda website this morning and quickly discovered that I could get 5 business class return tickets for just USD9,558. The Garuda online booking system accepted my Qantas Visa card for payment immediately and within minutes the electronic tickets were issued and in my email inbox.

Congratulations Qantas. You have just lost the sale of 5 business class tickets because of your complicated and inconvenient payment system for online bookings. Even if your fares were lower (which they are not) I would not tolerate the inconvenience you impose and would choose another airline.

If I owned Qantas shares I would be weeping. Fortunately I don't so I am able to laugh about this whole affair instead.

 

[Bintang]

Now I've just cancelled 5 domestic flight reservations with Qantas as well. Just discovered that Virgin has business class for 50% less than Qantas, their flight schedules are more convenient and their on-line booking system is easier to use. I don't think there is any hope left for this dinosaur. It's on its way down the gurgler.

 

[Bill M]

I don't think there is any hope left for this dinosaur. It's on its way down the gurgler.

Not so fast, there is still hope. Did you know they are teaming up with Emirates next year? Code sharing, frequent flyer points etc.? (do your own research of course).

I think this might save them. I don't own any stock in QAN but I fly heaps and Emirates have got a good business happening, far better than QAN and seems as though QAN will get the better benefit through their partnership, cheers.

 

[Klogg]

Not so fast, there is still hope.

Given their return on equity, I'd argue you're better off holding cash in a term deposit...

 

[Bintang]

Not so fast, there is still hope. Did you know they are teaming up with Emirates next year? Code sharing, frequent flyer points etc.? (do your own research of course).

I think this might save them. I don't own any stock in QAN but I fly heaps and Emirates have got a good business happening, far better than QAN and seems as though QAN will get the better benefit through their partnership, cheers.

If you are right that might help them with their international business but what about domestic? They've had domestic business class to themselves since Ansett disappeared but now it looks like Virgin might give them some stiff competition.
I never considered using Virgin myself until this week when I got 'customer is always wrong' attitude from someone in Qantas reservations. Then I discovered the price difference. I have yet to take the flights and sample the service so may I should keep some judgement in reserve but Virgin would have to do a lot wrong to make me return to the flying kangasaurus.

 

[Boggo]

I never considered using Virgin myself until this week when I got 'customer is always wrong' attitude from someone in Qantas reservations. Then I discovered the price difference. I have yet to take the flights and sample the service so may I should keep some judgement in reserve but Virgin would have to do a lot wrong to make me return to the flying kangasaurus.

This is an example of the QF domestic approach, they don't even directly employ flighties anymore...
http://www.mam.net.au/default.asp
I will be surprised if you are dissapointed with Virgin Bintang, below is my activity this FY and I head for Sydney with them tomorrow.