Is it time for Alan Joyce to fall on his sword?

25 replies

woganfan

Qantas - Qantas Frequent Flyer

Member since 13 Sep 2011

Total posts 72

Is it time for Alan Joyce to fall on his sword? Qantas consistently turning in poor financial performance and now further "enhancements" that are basically pissing off customers, surely his leadership has to be questioned seriously now?

whipper

Member since 17 Feb 2012

Total posts 50

Get your facts straight - tor the past 10 out of 11 years Qantas has turned a profit.  The mindless Qantas bashing is getting old. 

woganfan

Qantas - Qantas Frequent Flyer

Member since 13 Sep 2011

Total posts 72

I never mentioned profit.  I mentioned poor financial performance.  QF international in particular.  Nor is it qantas bashing, it is a question of customer loyalty been eroded yet again.

spinoza

Member since 01 Feb 2012

Total posts 218

Yes, loyalty has been eroded yet again. But there is no realistic expectation that it would be any better under another CEO. 

Over the years I've had a lot of poor service from Telstra, as I'm sure others have. I've never heard anyone call for the CEO's head on that basis. It's quite interesting why Qantas is so unique.

woganfan

Qantas - Qantas Frequent Flyer

Member since 13 Sep 2011

Total posts 72

Consistently poor financial performance together with erosion of loyalty.  If all loyalty goes and their is no return financially, surely the strategy will fail and the company is doomed.  

whipper

Member since 17 Feb 2012

Total posts 50

'Consistently poor financial performace' is garbage - they have made profits for 10 out of the past 11 years.  Get your facts straight.  Targeting high-revenue flyers is a winning strategy - targetting the bottom feeders is not a profitable proposition - they belong on Jetstar or Virgin...

curly

Qantas - Qantas Frequent Flyer

Member since 07 Mar 2014

Total posts 22

Whipper

"Targeting high-revenue flyers is a winning strategy" - By this do you mean targeting those paying cash for premium classes or targeting those who make the decisions to contract their staff to fly QF?

Either way we dont know whether QF would make more profit by having 14 in F SYD - LHR and 1 person in Y, or 1 person in F and having Y 99% full. I don't believe that someone who pays a certain amount for their J class fare will automatically mean more revenue for the airline than having several of the "bottom feeders" on board. 

Two examples would be the recent reconfig of QF A380 for additional economy seats and also the profitablity of budget carriers globally.

Got to be money in economy somewhere.

whipper

Member since 17 Feb 2012

Total posts 50

'Consistently poor financial performace' is garbage - they have made profits for 10 out of the past 11 years.  Get your facts straight.  Targeting high-revenue flyers is a winning strategy - targetting the bottom feeders is not a profitable proposition - they belong on Jetstar or Virgin...

hutch

Member since 07 Oct 2012

Total posts 761

Let's not get too excited. Joyce hasn't been in charge for the last 10 years. He has been there around 5-6. And whilst QF has made profits in all but one of those years, I recall several of those 'profits' are made up of one-time payments (like sale of assets and compensation for the A380 incident).

But more importantly, past performance is not an indicator of future performance and there is no doubt that the short-term profit of the airline looks grim. Very grim.

This 'bottom feeder', I might only average a spend of 5k a year on QF flights, but I also earn QFF through CC's which I will no longer need.

During the GFC, the thing that kept airlines going were the bottom feeders when on the premium traffic dissappeared... harder to get us back when we are gone.

woganfan

Qantas - Qantas Frequent Flyer

Member since 13 Sep 2011

Total posts 72

One time payments also included $120m in compensation from Boeing for delays in the 787 deliveries.  In a year that Qantas posted a profit of $110m .  

 

Good point about the premium traffic as well. So the old saying look after the pennies, the pounds will look aftert themselves  springs to mind.

nmalon

Qantas - Qantas Frequent Flyer

Member since 11 Jan 2013

Total posts 179

Disagree. Over the last decade main line Qantas has suffered at the hands of JQ expansion. The financial performance has been poor. Margins have been eroded because QF "must maintain 65% market share". its great they made profits in 10 of the last 11 years but look at the underlying numbers and they tell a different story! Domestic and international yields have been under pressure for years. Shareholder returns have been negative since 2009, they stopped playing a dividend, credit rating is under pressure . an p.s. targeting high revenue ff's has not worked.. take QFi as an example!

Any business person knows the goal of management is to enhance shareholder returns.. the prices has fallen from nearly $6 down to a price of $1.09 today!

As for the original question, i agree.. changes to loyalty schemes will make it harder to retain the premium traveller. it will be to the detriment of the most profitable part of the business - QFF.

 

charlieg

QantasFF Platinum

Member since 16 Feb 2012

Total posts 133

Noteworthy consideration:   Check how much your annual spend in with your telco (Telstra) vs. how much your annual spend is with Qantas!

brobro

Member since 02 Jan 2013

Total posts 66

Im not going to even comment on this but Whipper.....calm down mate!

nmalon

Qantas - Qantas Frequent Flyer

Member since 11 Jan 2013

Total posts 179

Totally agree Broderick

woganfan

Qantas - Qantas Frequent Flyer

Member since 13 Sep 2011

Total posts 72

Qantas international is performing poorly.  Some of the profits you mentioned have come from compensation from Boeing, if that hadn't come through there would have been another loss here and also what you need to remember is that the market value oft he company is one third what it was when Joyce took over.  As I said, it's not about just profit, that is poor financial performance.

also, no need to refer to people who are not high revenue flyers as bottom feeders.  A little bit harsh.

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