* International capacity reduced 3.3% during the reporting period
* Domestic EBIT down 1.7%
* 22% increase in domestic load since Ansett collapse
* Planned flying on both International and Domestic sectors to reduce from March 2003 to match downturn in forward bookings
* Gold Coast services to be served by single-class 767-300s
Questions: Has QFs domestic load only increased 22% following ANs collapse? According to the same report their domestic size (costs?) have increased by 50%. According to the QF website, all their 767-300s are currently configured as two-class, how many are to be reconfigured and on which other routes will they be used?
QF have shown that it is possile to turn a handsome profit despite the ongoing uncertainty of the industry.
Qantaspower From Australia, joined Aug 2002, 516 posts, RR: 7
Reply 3, posted (11 years 10 months 6 days 18 hours ago) and read 1628 times:
The following was also outlined at the media briefing:-
- 744 IFE ugrade complete within 6 weeks;
- 10 x 2 class 744's converted by June 03;
- 3 x orders for A330-200 converted to A330-300 (therefore there will 4 A332's and 9 x A333's)
- Australian airlines made small underlying profit of $2.4M in the 2.5 months that it was operating;
Qantaspower From Australia, joined Aug 2002, 516 posts, RR: 7
Reply 6, posted (11 years 10 months 6 days 17 hours ago) and read 1604 times:
What a load of nonsense. They do not have a monopoly in Australia. Virgin Blue operate on the 20 most busiest routes domestically in Australia and have up to 35% market share on the routes that they operate on.
Qantas also faces fierce competition from the Asian carriers on European and Asian flights.
And what are you talking about regarding New Zealand? Qantas has no ownership interest in Air New Zealand at this point.
And what would you know about competition anyway coming from the land of Air France.
Al From Australia, joined Jun 1999, 593 posts, RR: 2
Reply 11, posted (11 years 10 months 6 days 12 hours ago) and read 1553 times:
Erm, I think Qantas flies more than 20 routes within Australia, no? And for those 'non-Virgin' routes, I guess they have about 100% share? No?
No.............they don't. (100% on non DJ's) They also compete with Rex & Alliance on many Eastern regional & trunk routes that don't have DJ and on some routes there are now 3 carriers operating & competing.
Despite that, the fact that DJ has any market share at all means there is no monopoly as you originally stated - (much as I'm sure QF would like there to be !! )
I don't think there will ever be a Kangaflot, and the fact that DJ keeps gaining domestic share in micro jumps from QF will keep ensuring that for the forseeable future.
Of the "major" centres/routes in the country, the Alice is the only one that comes to mind that is 100% reliant on QF service. The East coast centres are well covered with options with probably Newcastle sticking out as one that is without effective competition, as is Mt. Isa in outback Queensland. Kalgoorlie is similar to the Isa in the west.
On the whole, most population centres of any decent size do have a choice of some sort.
QF is a very "dominant" force without doubt, but certainly not a monopoly.
Mx5_boy From , joined Dec 1969, posts, RR:
Reply 12, posted (11 years 10 months 6 days 12 hours ago) and read 1540 times:
Great news for QF, if they keep up their service changes and improve their quality to AN'esque style we may have a national airline to be proud of.
Unfortunately the market didn't like QF's annoucement today with mixed results, one of the most volatile trading days in the history of QF listed on the exchange.
Certainly affected our portfolios at work! Where we are value market weighted in QF.
DJ is no competition for QF, both of which have benifited in the demise of AN.
And with NZ pulling out of SYD / LAX and UA looking very shakey could provide more revenue opportunities for QF in the wake of a war.
QF must be one of the few airlines in the world with a capex of so much, and with domestic travel where they are supposedly losing out to DJ in some cases is an incorrect statement. DJ has stimulated air travel on these points sp the market share is skewed slightly.
And don't forget the corporate yields and full fare economy that QF are pulling in, something DJ cannot do. The scale would show QF receiving more *full fare* flights than Virgin as most people who would fly DJ go for the lowest fare they can. Whereas my organisation, whilst restricting 'J' travel is happy to book full economy fares with QF.
Being in the finance sector I'm not sure why QF shares were so volatile, I asked my local brokers why today and they said people are just taking bets on the actual performance QF can withstand with a war in the Gulf.
The newspaper reports of QF slashing 1,500 to 2,500 jobs are pure folly, QF intends to use attricion and forced leave at first, but if they have to retrench, they have to retrench, it's a fact of life.
Good luck QF, and keep up the good work with improving you product with leaps and bounds. Your *my* airline now and I want to be proud of you.
Singapore_Air From United Kingdom, joined Nov 2000, 13745 posts, RR: 19
Reply 13, posted (11 years 10 months 6 days 10 hours ago) and read 1524 times:
Qantas shares have dived 11.58% to A$3.36. Isn't this just a total over-reaction by the market? Considering the results, I think that some of you in Australia and maybe abroad should buy into the stock. It's bound to go up tomorrow... doesn't it?
"The earnings rebounded from a 42-percent slump in net profit to $90.5 million in the same period last year, which Qantas blamed on a steep decline in international tourism following the September 11 terror attacks in the United States and a rise in fuel costs" - CNN
"The Australian airline ranks among the 10 largest carriers globally, and is one of the most profitable thanks to its dominance of the Australian domestic market and a number of strongly performing international routes." - CNN
"We expect to improve our margins going forward as we continue to roll out our strategy to operate all-economic class aircraft on leisure routes that have little or no demand for business travel." - Geoff Dixon
"Forward bookings for the next 16 weeks have slowed considerably in some markets, including Japan, Europe and the United Kingdom. All carriers appear to be affected" - Geoff Dixon (not all carriers say they're affected)
"If things stay as they are, taking into account the drop-off we've seen in forward bookings over the next 16 weeks, we're still on track to meet the profit forecast. But, if they deteriorate further, things will change." - Geoff Dixon
"Management is swilling champagne at first class while cabin crew are looking for a seat in economy, and they've just relegated us to cargo." - Troy Warner of the Flight Attendant's Association
"Qantas - which is 17% owned by British Airways - saw its shares fall by Aus$0.46 to Aus$3.34, their lowest level since just after the September 11 attacks on the US." - BBC
"That's a concern as this half year result really seems to have been propped up by the international division." - Bruce Low, ABN AMRO.
"Some analysts were alarmed by a 1.7 percent drop in overall domestic earnings before interest and tax A$197.9 million, and an 11 percent drop in earnings on trunk routes." - Reuters
"... they have a reasonably good chance of meeting our expectations for this year, and given where the share price is and our expectations, the current sell down is a buying opportunity." - Simon Gresham, Merill Lynch
"The company is operating surprisingly efficiently in the very volatile environment, however conditions can change very quickly." - Simon Gresham, Merill Lynch
Must be something about Darwin - longest runway in Australia not long enough or something?
Saw Dixon on ABC's 7.30 Report tonight. Class act that bloke. Can't half tell that he has Mining and Government in his background. Almost made me cry to know that he actually has to work for his share options. Oscar material that performance - Fred Oscar that is - the tightarse ratbag down the road.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 15, posted (11 years 10 months 6 days 10 hours ago) and read 1502 times:
Also interesting from Geoff Dixon this morning:
Dixon also said Virgin Blue, the no-frills domestic rival to Qantas, has about 30% of the market. This is above the 25% estimated by Virgin Blue and industry analysts.
"They will get a third but I don't think they will get too much more," he said.
Tsv From Australia, joined Nov 1999, 1641 posts, RR: 5
Reply 16, posted (11 years 10 months 6 days 9 hours ago) and read 1495 times:
"Whatever happened to the 25% line in the sand"
Yes interesting that too. That quietly went bye the bye some time ago (suspect it was dropped as part of Dixon's share issue conditions also when it was obvious it couldn't be achieved) and was replaced by something like "so long as the market continues to expand and we continue to reduce costs". Flexible Management MBA Unit 101.
(You know just like Change Management MBA Unit 302 produced Australian Airlines)