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Old Feb 28, 2014, 10:19 am
  #1  
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Should I be worried...

... about booking overseas travel on Qantas this summer?

Been reading a lot of the news posted here, and it's making me just a bit concerned about my flight plans for August — specifically the following:

  • QF107/108 JFK to LAX and back
  • QF94 LAX to MEL
  • QF15 BNE to LAX

I understand that anything's possible, but are any of these flights more (or less likely) to be pulled than others?
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Old Feb 28, 2014, 10:58 am
  #2  
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Originally Posted by acurrie
... about booking overseas travel on Qantas this summer?

Been reading a lot of the news posted here, and it's making me just a bit concerned about my flight plans for August — specifically the following:

  • QF107/108 JFK to LAX and back
  • QF94 LAX to MEL
  • QF15 BNE to LAX

I understand that anything's possible, but are any of these flights more (or less likely) to be pulled than others?
I think QF just made their announcements and that should be it for a while. So I personally would book any of those flights in a heartbeat.
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Old Feb 28, 2014, 11:26 am
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Qantas isn't going bust. (well, not for the time being anyway)

It's reacting like a business that is trying to look towards a future, much like all the US airlines did who have the benefit of Chapter 11 protection - except Qantas doesn't.

There's no mention of the routes you mentioned here. So unless something materially changes, I'd say sit back, relax and enjoy the flight.
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Old Feb 28, 2014, 3:37 pm
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To quote AJ: "But you don't know the route profitability of Qantas. And can I tell you that every route that's left generates cash for us. ... ".

So I suspect those routes aren't going anywhere for the reasonable future ...

Last edited by serfty; Mar 1, 2014 at 2:24 am
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Old Feb 28, 2014, 4:45 pm
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The real question is whether the remaining routes will remain on QF metal or go to Jetstar. Want to book J seat to bangkok for early next year but won't until i know i am not going to be stuck on Jetstar
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Old Feb 28, 2014, 9:26 pm
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Booking flights on any airline is always a risk.
I just booked a J class LHR SYD on Virgin Atlantic they have just pulled out of HK so now I have to travel Qantas or CX.
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Old Mar 1, 2014, 12:32 am
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Originally Posted by serfty
To quote AJ: "But you don't know the route profitability of Qantas. And can I tell you that every route that's left generates cash for us. ... ".

So I suspect those routes aren't going anywhere for the reasonable future ...
I found that a bizzare statement. As long as you have one paying passenger then the flight generates cash.
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Old Mar 1, 2014, 1:20 am
  #8  
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Originally Posted by goback
I found that a bizzare statement. As long as you have one paying passenger then the flight generates cash.
I think Joyce was trying to distinguish betwen the Jetstar Asia fleet that is grounded and doesn't generate cash
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Old Mar 1, 2014, 2:26 am
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Originally Posted by goback
I found that a bizzare statement. As long as you have one paying passenger then the flight generates cash.
I don't believe that was what was meant in the context of the conversation. See below for context - he was basically stating that the remaining routes each make an overall profit.
... (Qantas chief gives no guarantees on keeping jobs in Australia - 27/02/2014)
SARAH FERGUSON: ... the response of many analysts today is that this announcement of yours was not strong enough. If we look, for example, just at the international arm, part of the business which is losing huge sums of money, you haven't taken the hard decisions to cut the loss-making routes. Why should you get handouts if you're not prepared - you and your board are not prepared to take those decisions?

ALAN JOYCE: But we have. I mean, if you think of the routes that we have taken out, we've withdrawn two of our services to London, we've withdrawn from Frankfurt, we've withdrawn from Auckland, LA. I could keep on listing...

SARAH FERGUSON
: Yes, but you haven't attacked the big loss routes in South America, in South Africa.

ALAN JOYCE: But you don't know the route profitability of Qantas. And can I tell you that every route that's left generates cash for us. ...

Last edited by serfty; Mar 1, 2014 at 3:50 am
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Old Mar 1, 2014, 2:55 am
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Originally Posted by goback
I found that a bizzare statement. As long as you have one paying passenger then the flight generates cash.
No, he is saying that the revenue generated by the flight yields more then the cost to operate that flight.
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Old Mar 2, 2014, 12:26 am
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Guys...

If all of Qantas's remaining routes make a profit, why is Qantas losing money as a whole? Especially considering the profit that QFF makes.

Sure, Joyce's statement encourages us to believe that each of Qantas routes individually makes a profit but it simply can't be the case. There must be significant costs that aren't being attributed to operating a route and yet are required to operate a route. The cost of owning aircraft, for example. Qantas can reduce overall expenditure by reducing the number of aircraft it owns, but that in turn means it needs to either reduce frequencies or cut routes entirely. Either way, the lesser performing routes are on the chopping block whether or not the books can be cooked to claim they are "profitable".
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Old Mar 2, 2014, 1:09 am
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Originally Posted by ButFli
If all of Qantas's remaining routes make a profit, why is Qantas losing money as a whole?
Why did QFi pay for the 787s while JQ gets the profit for their use?
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Old Mar 2, 2014, 9:54 am
  #13  
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Originally Posted by ButFli
If all of Qantas's remaining routes make a profit, why is Qantas losing money as a whole?
You don't even need to look at QF as a whole. QFi is losing money, and worse than before.

I thought that the most significant part of what he said was the use of the phrase "generating cash". He might just as well have said this:-
But you don't know the route profitability of Qantas. And can I I'm not going to tell you. But what I will tell you that every route that's left generates cash for us.
I'm neither an accountant nor an investor. But even I know that there's often a difference between making a profit and generating cash.
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Old Mar 2, 2014, 9:58 am
  #14  
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What I want to know are:

1) Did they know that their financial results would be a mess before they changed the uniforms to something far worse than before?

2) If they did know, why did they go ahead and spent more money?

3) If they didn't know, isn't it a bit worrying?

(On an aside it probably wasn't that expensive. A crew member from another airline told me that the tailor's shop in one of the Asian cities (I can't remember where although he told me) was full of QF crew bringing in their new uniforms to be altered because them fitted them very badly).
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Old Mar 2, 2014, 10:02 am
  #15  
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Originally Posted by LTN Phobia
1) Did they know that their financial results would be a mess before they changed the uniforms to something far worse than before?
Of course they knew.

Originally Posted by LTN Phobia
2) If they did know, why did they go ahead and spent more money?
Shiny new uniforms will reduce labor disputes and increase revenue.

Originally Posted by LTN Phobia
3) If they didn't know, isn't it a bit worrying?
They did know. And this is also a bit worrying.
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