Feb 27, 2014

Qantas shocker: $252m loss, 5000 jobs cut, shares slump … over to Abbott

Qantas has lost $252 million in the last six months and will soon lose 5000 more jobs. But CEO Alan Joyce keeps his job. Crikey's business editor examines the wreckage.

Paddy Manning

Crikey business editor

The main thing the federal government would consider when deciding whether to grant Qantas its hoped-for loan guarantees, federal Transport Minister Warren Truss told the ABC this morning, was the market reaction to today’s first-half profit announcement. Well, the initial market reaction is in — and the thumbs are not up.

Qantas shares slumped more than 7% to $1.18 after it confirmed 5000 jobs would go over the next three years in a brutal $2 billion round of cost cuts designed to restore the airline to profitability.

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21 thoughts on “Qantas shocker: $252m loss, 5000 jobs cut, shares slump … over to Abbott

  1. zut alors

    How comforting it is to know the man who escalated the demise of Qantas is the same CEO to devise a ‘turnaround’ plan – with the support of the same board.

    If one of the Oz cricket team performed this badly they would be sidelined pronto. Joyce & the board must be replaced as a matter of urgency before the airline is worth peanuts.

    To produce this result from an airline with the world’s best safety record takes outstanding incompetence.

  2. klewso

    How much are they paying Joyce – and they still get monkeys?
    He’s taking a 3% pay cut while some workers are taking a 100% cut?

  3. Michael James

    On one hand Joyce rails against foreign government owned airlines, while handing vast swathes of Qantas’ profitable international business to Emirates.

    Want to fly to London, Emirates will get you there.

    Perth to Johannesburg? Emirates all the way, via Dubai.

    That is, the parts that he hasn’t handed over to Jetstar.

    Sydney to Honolulu? Can’t get there on Qantas, you have to fly Jetstar.

    Pretty soon it will be the same for Perth to Singapore.

    As it is, when I had to fly to Singapore from Sydney recently, the vast majority of Qantas flights flew from Sydney to Melbourne, required several hours in the transit lounge, the a long flight to Melbourne.

    In fact there were almost as many direct flights on Jetstar as there were on Qantas that day, and Joyce wonders why international services are losing money?

    Joyce is an idiot of the worst caliber, back by a board of fools who have supported everything Joyce has done, including no dividends for years, all the while signing him and themselves ever greater pay packets.

  4. Phillip Gray

    Is QANTAS becoming a poorly told Irish Joke??

  5. Bo Gainsbourg

    Am I right in saying that since Joyce has been at QANTAS he has presided over a massive destruction of shareholder value? Also that no viable airline in the world proceeds these days without government backing? All governments make decisions, ours have been making decisions that they don’t want an Australian national airline. Its the politics my friend.

  6. db

    If someone had a desire to drive down the sale price of an airline to sell it off to Emirates or similar for some sort of personal advantage how much would it differ from the way Joyce is running Qantas?

    Whether it’s deliberate or not it does not look good.

  7. Venise Alstergren

    Alan Joyce has all the leadership values, charisma and foresight of a small town English bank manager. Admittedly a series of QANTAS boards of directors have always been dominated by a post colonial collection of Colonel Blimps. A quality our Prime Minister-an anglophile of the first order-would naturally be drawn to.

    A CEO who axes five thousand jobs and, at the same time, settles for a THREE PERCENT cut in his own wages is all heart (joke) and no brains. I must be becoming senile because I have these gaps in my mental state. Gaps where I hear the ghostly refrain of Joe Hockey’s voice saying the era of entitlements is over??!! Over for whom?

  8. Patrick

    I think Joyce realises he will never get another job. So he is going to ride this one for as long as he can until the sun finally sets. Now are the board & shareholders happy for that to happen?

  9. colin skene

    How is this **nt still in a job? And, someone tell us what his pay out will be when he finally realises he has presided over a monumental c**k up. UNFATHOMABLE!!!!!!!!

  10. colin skene

    How is this joke of a CEO still in a job? And, what will be his payout when enough people realise he has presided over a massive c**k up of our (supposed) flagship carrier. His remaining in charge is comnpletelt UNFATHOMABLE!! Moreover, do you think he cares?

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