Companies

Jan 10, 2014

Qantas junked? It’s too late to save the flying kangaroo

Australia's airline has been junked by two credit ratings agency. So what can Alan Joyce and the Qantas board do about it? It's probably too late to save the flying kangaroo now.

Ben Sandilands — Editor of Plane Talking

Ben Sandilands

Editor of Plane Talking

How does a company in as much trouble as Qantas rid itself of group CEO Alan Joyce and a board chaired by Leigh Clifford in order to reverse or remove a set of ruinously bad strategic mistakes?

16 comments

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16 thoughts on “Qantas junked? It’s too late to save the flying kangaroo

  1. Tristan Wilson

    It frankly amazes me that Alan Joyce still has a job. The man has done nothing for Qantas except to turn it from one of the best airlines in the industry, to an international laughing stock held together by good pilots and a lot of luck. I was on the last flight into Heathrow back in 2011 before the shut down. In fact, if we hadn’t left Hong Kong when we did, my brother and I would have been stranded there for who knows how long. Our entire holiday would’ve been ruined, just so Joyce could look tough in front of the strikers. As a result, I will not fly Qantas again, at least not until there’s a serious change in management there. Joyce should have been sacked for incompetence years ago.

  2. grubbidok

    Just imagine the QF that could have been if Borghetti had been given the reigns instead of Joyce. Bet shareholders are kicking themselves now.

    My personal prediction though, is that a private equity consortium will offer to ‘save’ QF, and it will be looked upon more favourably than it was 5/6 years ago, and they’ll probably be able to get it for a lot less than the $11b they offered last time.

  3. ianjohnno

    Perhaps a name change is in order. Ozymandias Air?

  4. bushby jane

    Joyce has made a submission to the govt’s Direct Action suggestion box advocating the funding of more fuel efficient aircraft. Doesn’t appear to be a priority presently with the current choices being made which I think was pointed out to him by the Pilot’s mob during the time of the union troubles.

  5. Bill Parker

    I hope that grubbidok’s predictions come to pass. But much moreso that the PEC will insist on removing Joyce.

  6. Dulong Ttil

    Japan has been applying an assertive Monetary Easing Policy, which drives the YEN downwards successfully. The immediate result shows that their Export and Tourism industries have picked up swiftly. Japan is now enjoying healthy export growth and has much more tourists visiting Japan.

    With the sound and robust stimulation by Japan’s Monetary Easing Policy (which in fact mainly injecting more printed notes into the market by their Central Bank), the Nikkei has soared from 10,398 to 16,291 just in 2013. Nikkei marks its best performance in forty years, and also the top performer among Asian markets in 2013. Analysts name this “Nikkei Ends Year on a High in Quiet Asia”. Can we see the power of an aggressive Monetary Easing Policy now?
    Australia can consider this as a viable option to improve our economy outlook and, our export can be improved instantaneously.

    A lower $A can help to improve our Export opportunities, save the Australian farmers and manufacturers and reduce our trade deficit. It can also help to improve our Tourism industry, which has been damaged due to high $A. When tourists increase, it can save Qantas as well.

    Another thought is a linked currency policy for constantly linking AUD:USD at e.g. A$1.00 : US$0.80. The well-known success case is the linked currency between HKD:USD in the past 25 years or more. This link has more detailed discussion: http://en.wikipedia.org/wiki/Linked_exchange_rate .
    Some other success cases of linked currencies in Europe can be found on this link: http://ec.europa.eu/economy_finance/euro/world/other_currencies/index_en.htm

  7. Suzanne Blake

    Glad I emptied by FF account before Christmas

  8. macca

    I what what Geoff Dixon, Singo etc are doing right now? Ready to pounce maybe?

  9. Frequent Fixer

    No measure of private equity or government investment can ever compensate for incompetent management. Destroying an International air service by giving away routes to Emirates and Jetstar means that there is no longer a comprehensive service offering. Using failed former Ansett executives to run anything can never work, like it didn’t work at Ansett. Qantas tracking along the Pan Am path by offloading capital assets to improve cash flow so Joyce can get his bonus. Qantas can succeed, but not with the current goons pushing the current strategy.

  10. Jimmyhaz

    Just hoping that after Qantas fails, none of the executives are ever put in charge of anything larger than their local lemonade stand.

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