Companies

Feb 16, 2012

Qantas ditches share dividend again — and 500 jobs

Qantas CEO Alan Joyce this morning delivered what he conceded was a poor half-year-to-December 31 performance by the company, while leaving considerable uncertainty hanging over jobs and services.

Ben Sandilands ā€” Editor of Plane Talking

Ben Sandilands

Editor of Plane Talking

Qantas CEO Alan Joyce this morning delivered what he conceded was a poor half-year-to-December 31 performance by the company, while leaving considerable uncertainty hanging over jobs, services and the future of an Asian premium carrier plan.

It was a subdued performance, which leaves shareholders will no dividends for a third straight year, after a six-month period in which the statutory profit after tax collapsed from $241 million in the previous corresponding half to $58 million (and lower at $42 million if controlled entities are included).

Free Trial

Proudly annoying those in power since 2000.

Sign up for a FREE 21-day trial to keep reading and get the best of Crikey straight to your inbox

By starting a free trial, you agree to accept Crikey’sĀ terms and conditions

14 comments

Leave a comment

14 thoughts on “Qantas ditches share dividend again — and 500 jobs

  1. Brix-Nielsen Leslie

    The only airline – of similar size – to post an 83% profit drop !!! . . . Alan Joyce is obviously one of the all-time corporate incompetents ! . . . . Shutting down the London route just before the Olympics start in London !!! Unbelievable !! . . .Is he working for John Singleton and Jeff Dixon – or is working for some other airline in order to destroy QANTAS from the inside . . . and the three of them buying the wreck ??? . . . . . ADD: The Gillard government, a major shareholder – is asleep at the stick !!

  2. David Lilley

    Qantas are making an ‘economic’ decision, albeit a short-term one, which is essentially the right decision. It has to compete on a global scale and to global economic conditions. But what if we take this thinking to its logical conclusion and export all our jobs overseas because it’s ‘cheaper’. There’d be no one to buy the products and services these companies want to sell. There has to be a balance.

    We can’t keep putting short-term economic gain ahead of long term economic (and social) prosperity and wellbeing. The issue is therefore much bigger than Qantas or the banks or any other industry. It’s a problem of all our making and one which will take a solution of all our making. The only problem with this is that this should be lead by the government, however they (and the opposition) are so consumed with themselves and the other side and so focused on the here and now, we don’t have a chance to have these ‘bigger’ conversations.

  3. Gavin Moodie

    I think – hope – that the Qantas board and management are changing the airline’s strategy for a medium and long term gain. The current pain is surely due as much to the previous board and management’s poor decisions as to recent mistakes.

  4. tinman_au

    So let me get this straight, Qantas was sold to private enterprise because government isn’t any good at running businesses (or so “they” say), yeah?

    Did Qantas ever do this bad under government ownership? How are the state run airlines doing?

  5. Mark from Melbourne

    When are people going to wake up to the clear evidence that QANTAS has been a very poorly managed business for many years and the current management inherited this near basket case and are doing their best to finish the job?

    How you ask? Well the actions over the last few months seems purpose built to alienate its main customer base – Australians.

    And you have to ask – what is the point of QANTAS as a company if it is just another low cost Asian airline? Is it really going to make shareholders any money? It’s hardly what you would call a growth industry or without competitive disadvantage.

    And those peopel saying it’s the governments fault – how about a reality check.

  6. Owen Gary

    “Apprently the new A380s dont need much maintenance”, even though they have been fraught with problems before even entering their designated hangars.

    I will remember Allan Joyces comments when he has to inform the dead passengers relatives of what went wrong.

    We will definitely see planes falling out of the sky in pusuit of corporate profits Vs aero maintenance!!

    Everybody already knows that Qantas was very profitable before they starting funnelling profits through to “Jetstar” to make them look like the coporate pin-up.

    What a crooked & crazy world we live in, madness begets even more madness!!!

  7. Bohemian

    When are shareholders going to pressure boards to select executives who have an emotional commitment to the country their company purports to represent? Or is that the point of the current hiring pattern; select someone who isn’t going to be emotionally manacled and puts money before people without fear that their mother will be ringing them up and abusing them!

  8. redpath

    Am I missing something here: “underlying profit-before-tax dropped from $417 million to $202 million, a result that included the effects of a $194 million cost from industrial action and the grounding of the carrier”. So if Mr Joyce had not grounded the fleet the profit before tax would be $396 million – a couple of percent down on last year but not bad for an era of high fuel costs, reduced tourism and subsidising Jetstar.

    Doesn’t this suggest the problem is Alan Joyce, not the high costs of a quality service?

  9. Steven Warren

    What a crock.

    It’s already been well established that Qantas pays for Jetstars fuel, check-in staff and baggage claim, storage and is also subject to all sorts of other highly dubious money transfers like Qantas paying a premium giving them cargo-space on Jetstar flights which they pay whether they actually use the space or not.

    Them paying out that terrible return was a direct result of them hiding their profits from their shareholders.

    Someone take Joyce out the back and shoot him.

  10. AR

    Joyce is as perfect an example as could be imagined of a corporate creature with no sense of the real world. The sort who sees trained staff with a corporate ethos as merely more expensive than some O/S contractor – sack ’em!
    Spare parts – pfahh! In house expertise? – gotta be a call centre somewhere that is cheep cheeper!
    The irony is that such bean counter, asset strippers usually manage a short term dividend & share price rise – this gombeen has failed even that execrable low hanging fruit.

Share this article with a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details

Sending...