Companies

Dec 8, 2011

Asian airlines throw spanners into Qantas works

Events during the past 24 hours are not proving kind to Qantas' ambitions in Asia. Vietnam Airlines and Malaysia Airlines have thrown spanners in the works.

Ben Sandilands — Editor of Plane Talking

Ben Sandilands

Editor of Plane Talking

Events during the past 24 hours are not proving kind to Qantas’ ambitions in Asia.

8 comments

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8 thoughts on “Asian airlines throw spanners into Qantas works

  1. Oscar Jones

    Anyone who has confidence in Joyce who believes losing tens of millions of dollars in custom and even more in bad PR with his world-wide cancellation of flights is a brilliant strategy needs their head read. Qantas shareholders will rue the day they voted him his bonus.

  2. Mack the Knife

    My old man used to say ‘if a thing aint broke don’t try to fix it’.

  3. kennethrobinson2

    if a board hires a Leprechaun to run QANTAS, then what can you expect, maybe the whole board should go with him.

  4. Bill Williams

    When Jetstar Pacific Vietnam entered into a fuel price hedging contract which saw it lose $31 million, Alan Joyce was the head of Jetstar and on the board of Jetstar Pacific, and Qantas was the “trading agent” for the fuel hedging contract. The contract was put together by former Qantas executive Tristan Freeman with key documents related to the contract signed by another former Qantas executive Daniela Marsilli.

    The Australian view about all of this is that Marsilli and Freeman were treated badly after being separated from their families, barred from leaving Vietnam for 6 months and interrogated for their part in the fuel hedging losses incurred by Jetstar Pacific…..and that the fuel hedging contracts were normal, but “bad luck” for Jetstar Pacific.

    The Vietnamese probably see it differently. Since Qantas only owns 27% of Jetstar Pacific, and the Vietnam government owns the rest (through the State Corporation for Investment and Capital)….it was the the Vietnam Government who effectively were hurt most by the deal. Rightly or wrongly the way they most likely see it is their new partner , a Qantas subsidiary, put them into a bad fuel hedging deal…..and one with a fishy smell since Qantas was also the trading agent for the contract. There also remains some question as to whether the (former Qantas) Jetstar executives who signed key documents related to the contract had the right to do so under the Jetstar / Pacific Airlines partnership agreement.

    Just because the Australian Jetstar Pacific executives were never charged with any crime doesn’t mean the Vietnamese were admitting fault or didn’t feel they were on the wrong end of fancy Qantas accounting…… the poor Vietnamese senior executive, Luong Hai Nam, was jailed for “neglect”! Vietnam would have been well aware of the bigger picture of Vietnam’s overall “brand” as an investment destination. [Actually nobody knows what brought about the freedom of the two Australian executives….they aren’t talking about it.]

    The fact that Vietnam discontinued its action against Jetstar Pacific’s Australian executives doesn’t mean Alan Joyce is well regarded by the Vietnamese…..or that Vietnam will co-operate with his Qantas Asia plans where Vietnam is involved.

  5. MangoMania

    I constantly hear about the Qantas shareholders getting the rough end of the pineapple in regards to the Joyce payrise.
    I am certain that many do not understand that Joyce is a majority shareholder and therefore voted HIMSELF the payrise. Call it branch stacking in the corporate world if you will, but it is not a rare occurrence by any means…. see Limited News Corp’s recent re-election of the Chairman et al.

    The way Qantas – read Joyce – treated his customers shows just how pathetically pissweak the attitude of the upper management is – and any person who gambles flying with them is an A class idiot.

  6. AR

    I’ve just been offered $1,700 return to London in February 2012 on BA/Qantas. That’s fewer dollars than I paid 20yrs ago as a helluva lot less in real money. I’m tempted, despite Qantas’ woeful service in the past decade or two.

  7. FatCat

    AR – so long as it’s a codeshare on BA metal, the service will be good. Unfortunately, I have found it much better than Qantas in the recent past which is a turnaround.

    All of this sounds like Qantas has caught the disease of making grand announcements, rather than getting on and achieving something.

  8. ronin8317

    In Vietnam, it is a crime for a state-run enterprise to operate at a loss.

    Jetstar Pacific is finished. It remains to be seen what Qantas can salvage out of it.

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