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A Dark Day for Qantas

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It was a dark day for Qantas today as their C.E.O.Alan Joyce announced a 6 monthly loss of $A252 million and the subsequent slashing of 5000 jobs at the airline. (www.theaustralian.com.au) Mehr...

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Kem7
Kem7 2
CEO bashing seems to a favourite sport for Qantas employees and its unions. None of the past CEOs have been either popular or thought to have done the right thing according to some "expert" Q staff and union mouthpieces. Makes you wonder how Q can ever survive with such poor staff attitude to a company that is punching well above its weight in a seriously capital intensive industry. I've decided to become a loyal customer of Qantas to help them out - better support than a lot of their staff or unions. I'd hate to see China airlines get a leg up from all the negativity in this iconic Oz business. (incidentally, I do not work for Q or any or its suppliers so have no vested interest other than to wake up some very silly Australians).
Kem7
Kem7 2
And cunning rats like Virgin CEO know all the weaknesses of Q after years working at Q. So can exploit every opportunity to do Branson bidding. These poor Q staff seem to have been sucked in either by Virgin's "clever" tactics or by Labour politics via their union mouthpieces. They need to step back and see the big picture. Average Australians are happy with Q even if Q staff aren't. I, for one, want to help Q with market share contribution. Why can't each loyal Q staff member do the same? Or are they hell-bent on destroying the icon?
Kem7
Kem7 2
Sad sad staff of Q. Virgin tell us today that they even make a $80m loss with $300m injection from O/S government backers. I have no service issues with Virgin. Just feel they have got into your company's territory like a Trojan Horse and all you and your union mouthpieces can do is bash your CEO. Like you're going to find another one out there that will give you a break - wake up and go to virgin if you think it is better! Would you trust the Virgin boss?
I am just a customer and we march with our feet. After speaking to my baby-boomer friends, they think we need to back Q to give them a fair go - wonder why you guys are so bent on killing your food-chain? What have your mouthpieces been telling you? Do you think for yourselves? Sorry I'm not normally disrespectful but you seem unwilling to listen to a customer perspective.
PhotoFinish
PhotoFinish 1
A breakdown of costs and profits should be done by division, to help determine:

1. Whether the Jetstar divisions are hurting Qantas profitibility, no impact, or whether they are performing better than Qantas's legacy division

2. If Joyce is a bad manager, or not?

3. If Qantas legacy division is the actual cause of the great losses?

Then you'd have your pick of whether: The regulations that don't allow even competition between Qantas and its' largest competitor are the cause for the big losses? Or if the foot dragging by the unions that are having the largest impact on the losses the operation is making?

Or we can just keep blaming Joyce for making the hard decisions that whoever was the helm would have to make.

Anyone have more info or a more thorough analysis, to answer any if the above questions? Blaming the CEO is fashionable. But in the challenging environment in which Qantas finds itself, just blaming the guy having to make the tough decisions is overly simplistic and disingenuous.
preacher1
preacher1 2
Let it just suffice to say that the Australian government is undertaking just such an analysis, behind the scenes as we speak, and a full report will be done in about a month. That doesn't mean it will be made public, but it will be done and presented in about a month. It may not be released to the public as it will be very frank and concise and could lead to some embarrassment of some in power, even those that ordered it. It is being done by an American firm well experienced in such matters.
Andrewaltitude
Andrew Young 1
Obviously action from the top down is required. I like the JAL approach when they went bankrupt. Would this be too much to ask? http://www.wdrb.com/story/9283503/japanese-airline-president-and-ceo-shares-the-pain
PhotoFinish
PhotoFinish 1
The JAL CEO's self-sacrifice had no material impact on the airline's finances.

What the CEO did was not insignificant, but it was merely symbolic, and motivational to get employees to buy into the sacrifices they were contributing to help the eventual survival of their airline.

While I commend what the JAL chief did for the benefit of the airline, it is not necessary. Other CEOs should not be measured against the sacrificial actions of this airline chief.

Each CEO should be measured by their individual results as a manager, no matter how they get there.
zurismith
Zuri Smith 1
Patt Watkins- just because I'm employed by government now doesn't mean that has been the case for the last three decades. From my point of view, THE SINGLE MOST IMPORTANT factor for the travelling public on deciding which airline to fly with should be safety. You would be scared s~£€¥*+s if you saw 1/2 the paperwork that I have seen. I can assure you, despite your obvious bias, you would only travel Qantas in Australia and a few select carriers overseas. My issue is that the left-wing media in Australia do not report any of these near-death events/incidents unless they involve someone they want to cut down ie tall poppy. This has been happening for years and must stop. The lack of disclosure has nothing to do with government but with media not wanting to report an Asian or Arabic airline has (yet again) lost one or more engines in flight etc. time to wake up, mate, otherwise you might not arrive at your destination.
Kem7
Kem7 1
Thanks Andrew for your interpretation of marketing and economics in the airline business (even if it is a tad insular – most businesses are pretty cut-throat today – try being in Telco or Mining). But the difference here is more a question of whether Australians want to see Q survive as an icon of Australia. My friends do – maybe a bit sentimental like they were about Vegemite and Arnotts that didn’t survive as Oz companies. If Q staff don’t want it to survive and are prepared to bung on a blue that will likely kill it, then it will surely go the way of those others and Branson will have won. Pity about your jobs but really no worse than Holden in my outsider view. You see I think the icon idea only survives because those who believe in the idea get right behind it. I’m contributing by giving my loyal market share. You’re contributing by bashing your CEO or maybe union action. Can’t quite see how you are behind the icon idea.
zurismith
Zuri Smith 1
Sorry to be blunt, but Kem7 is in desperate need of some wider reading / education.
I have worked in aviation safety for almost three decades. I am employed by government so I do not have an airline bias. Qantas runs circles around Virgin in terms of safety and experience. No ifs, buts or maybes. They simply have a superior product. If the media weren't so anti-Qantas, this would be obvious to every traveller.
Virgin have financial backing from overseas governments. That cannot be disputed but you seem to which makes your comments even more inaccurate. Furthermore, Branson does not know how to run Virgin in a fair way. All he ever does is kick the opposition while they are down. Virgin and their bosses are un-Australian. Plus their profits don't stay in Australia but go overseas! Remember that!! Despite my lack of allegiance, after what I have seen go on with Branson taking out newspaper ads against Qantas, I won't ever be booking Virgin again. Anyone who is a proud Australian should follow suit.
zurismith
Zuri Smith 0
My mistake!!! It is Patt Watkins that needs to be educated. Worked in the stock market??!! Really??!! I wholeheartedly agree with Kem7. Sorry mate!!
Kem7
Kem7 0
Sorry Andrew but you sound bitter and frustrated and I am sorry I have offended you. Customer loyalty is alive and I pay real money for airfares (not discount) because I get good product and it provides market share support for Q. I'll never fly virgin again after they took money from O/S backers to increase capacity while they were badly losing money on existing capacity. Virgin 11% increase and Q only 6% capacity - it's basic marketing - you've gotta follow the loss leader as best you can - look at Woolies and Coles.
kwu20001
kev wu 0
(Duplicate Squawk Submitted)

Qantas Airlines to cut 5,000 jobs

Calling recent financial losses "an unacceptable and unsustainable result," Qantas CEO Alan Joyce announced Wednesday the airline will cut 5,000 positions over the next three years.
Joyce also said the Australian-based carrier would sell or defer the order of 50 planes as it tried to realize $2 billion Australian in savings by 2017.
About 1,500 of the job reductions will be in management and nonoperational roles. Other cuts will come as the result of changes to the fleet of airplanes and as some routes are taken off the schedule.
"We have already made tough decisions and nobody should doubt that there are more ahead," Joyce said.

http://edition.cnn.com/2014/02/26/travel/qantas-job-cuts/

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