Thursday, February 27, 2014


It was fascinating today watching Sky seeing the media dissect the Qantas announcement.   Bottom line is that the Company is a basket case.   An airline living off a reputation long gone.    An airline with weak management too scared to make the changes necessary for it to remain competitive until the decision was forced upon them.

Qantas was an airline hamstrung and dragged down by a bloated workforce enjoying gold-plated conditions that could not be sustained.    Qantas was an airline bleeding from low cost domestic airfares ($49 Melbourne to Sydney) which saw the Company loosing money on every flight.     It was a plane crash waiting to happen and now it has and there will be casualties.   5,000 of them plus an indefinite wage freeze for those employees still standing plus an asset sell off plus reductions in both routes and capacity.

And the Union reaction was to threaten strike action.    Just what the Company needed.

It would have been through gritted teeth that had one industry analyst say that all Qantas needed to do was to look at Air NZ to find out what it takes to make a profitable airline.  


Anonymous said...

I fly them to Hong Kong every now and then. Great schedule ex Wellington, cheap and I've found the service great with friendly cabin staff. I hope they can fix it.

The Veteran said...

'cheap' appears to be one of the problems.

Adolf Fiinkensein said...

I think it will be good politics for Mr Abbott to appear to be helping Qantas, after giving the cold shoulder to Holden and SPC, both of whom have wealthy parents.

He should have the gummint buy the new aircraft Qantas needs and lease them to the airline, thereby obviating the need for borrowing with its potentially deadly gummint guarantee. A condition of such assistance should be the immediate reversion of all staff to award pay rates.

Then watch Labor and the unions squirm. The result will be that the unions will not agree, so no assistance will be given, so Qantas goes broke.

Which is as it should be.

One day, Australians might just wake up and realise unions are killing off their country.

cribble said...

Not all the Unions' fault. Qantas has suffered a number of years of truely idiot strategy (particularly around its offshore ventures).

"...It [QANTAS] once used the Qantas Sale Act to advantage to sell the merits of its overseas cash for shares equity raising. Now it has blown its long term unsecured debt ratings from investment grade down to junk. It has very poor standards of timely and accurate guidance to the markets, as shown in the incredibly late June 2012 and December 2013 financial outlook reversals. It is enraged at Virgin Australia trying to do with foreign investors in Australia what it is trying to do, with far less success, in Japan, Hong Kong, Vietnam and Singapore, and it has given away for nothing parts of its international network to the world’s largest government owned carrier, Emirates..." (Ben Sandilands,

Watcher said...

Interesting to read the report.
In all instances the layoffs will be by voluntary redundancy.
I guess the unions did their job well.

Adolf Fiinkensein said...

Cribble. No, not all but a very large part. The common factor in Holden, Ford, SPC, Toyota and Qantas has been sweetheart deals between weak management and aggressive unions, resulting is process workers at SPC, for example, being paid $30k over the ward rate and Holden receiving $50k tax payer subsidy for every job at it's plant.

In all cases, had award rates been paid, all companies might have remained profitable.

If you count the job losses in support industries I'd guesstimate so far in the last yer some 200,000 jobs have gone or are about to go.

The age of corporate 'entitlement' appears to be over.

The Realist said...

I understand Quantas involves 17 unions and when things turn to shit they threaten strike action!!

Angry Tory said...

Tony Abbot should do what he was elected to do - get those econo-terrorist Unions out of Oz.

A condition of such assistance should be the immediate reversion of all staff to living wage pay rates.

that's more like it.

Noel said...

Adolf said
"He should have the gummint buy the new aircraft Qantas needs and lease them to the airline"

That wont work. The report clearly spells out that it will be retiring aircraft early and delaying the purchase of new aircraft that will be impacted on the reduction in routes."

So you want Abbot to buy more aircraft for Quantas whilst it has many now on the ground at some airports with no work to do.


Paulus said...

Last time I flew Q International was Friday night flight Singa to Syd , business.
The worse flight I have ever undertaken (not quite I once flew night flight Pan Am, LA to Pago)
It seems that the b class passengers only want to drink themselves to oblivion before getting home to wifey, and bugger all the other full paying passengers. Crew could not do nothing but full them up with drinks in the hope they collapse - disaster all round.

Adolf Fiinkensein said...


No, not strange. Try thinking and you may just figure out the answer.