Sydscott
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QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 10:39 pm

QF have reported first half results today. A Statutory net profit of $111 million and an underlying profit of $223 million.

http://www.asx.com.au/asxpdf/20130221/pdf/42d51vs93fkymf.pdf

Segment results include;

- $91 million loss for QF International, an improvement of $171 million;
- $218 million profit for QF Domestic, down from $328 million if first half of 2012.
- $128 million from Jetstar, down from $147 million in first half of 2012;
- $137 million from QF Loyalty, up from $119 million in first half of 2012
- $22 million from freight, down from $38 millin.

$3.5 billion of cash on hand.
 
fiscal
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 10:43 pm

Things seem to be improving then.....
 
Sydscott
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 10:43 pm

http://www.asx.com.au/asxpdf/20130221/pdf/42d525lvtqds0y.pdf

QF have also announced a major refurbishment of the A330 fleet and will acquire 5 additional 737-800's for QF Domestic.

That means that all 10 A330-300's and 20 A330-200's will have flat beds in business class. So the A332's coming back from JQ will be significantly upgraded.
 
zkokq
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 10:45 pm

Things are looking good for QF! Lets hope the momentum will continue.

Well done to Alan Joyce and the team at QF.
 
Mikey86
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 10:49 pm

Sad to see the 767 go   But a much needed retirement for QF.
mikey86 - Greenslopes, Queensland
 
jetblueguy22
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:04 pm

Glad to see QF is turning things around. It should be interesting to see how much the EK partnership helps. I've only flown them a couple of times but I enjoy their service quite a bit.
Pat
All of the opinions stated above are mine and do not represent Airliners.net or my employer unless otherwise stated.
 
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EK413
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:24 pm

Bloody fantastic result considering the position QF was in same time last year...

Well done AJ and QF!!!

Bring on DXB!!!

EK413

[Edited 2013-02-20 15:25:04]
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Bobloblaw
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:27 pm

Their improvement is all international. What is happening in the domestic market that has caused a reduction in profits.
 
jrfspa320
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:27 pm

Will the a330 have the new Y, any chance of putting in Y+?
 
zkokq
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:28 pm

Quoting bobloblaw (Reply 7):

Maybe the war after the grounding and the switch to another airline? People searching for a better price, ie using Tiger?
 
RyanairGuru
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:31 pm

Quoting Sydscott (Thread starter):
$91 million loss for QF International, an improvement of $171 million;
- $218 million profit for QF Domestic, down from $328 million if first half of 2012.
- $128 million from Jetstar, down from $147 million in first half of 2012;
- $137 million from QF Loyalty, up from $119 million in first half of 2012
- $22 million from freight, down from $38 millin.

Overall very impressive! It's great to see that International is improving, and that Loyalty - the unsung hero of the Group - is still performing strongly. We knew the Domestic was going to take a hit given the fair war that VA unleashed, but hopefully that should stabilise during 2013. Perhaps the biggest concern is freight. Does anyone know why that aspect is performing weaker this year?

Reading the media release in #2, I find it interesting that it looks like the 332s are going to be 100% domestic and the 333s 100% international. I guess that sort of makes sense, but I wonder if 10 A330s is enough for their Asian network? I'm counting BNE-HKG (1), MEL-HKG (1), BNE-SIN (1), MEL-SIN (1), SYD-SIN (1), PER-SIN (1), SYD-CGK (1), SYD-MNL (1), SYD-BKK (1), SYD-PVG(1) = 10, no spares, and this assumes that SYD-NRT remains a 747.

Also I'm saddened to see that the 734s will be gone by the end of this year   As I am CBR based, virtually all of my flying is on 734s (or Q400s if going to SYD). While they are showing their age, they have wormed their way into my heart. I'm going to miss my pet Kookaburra (i.e. VH-TJE)
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aussie747
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:38 pm

Quoting bobloblaw (Reply 7):
What is happening in the domestic market that has caused a reduction in profits.

Probably the bloodbath that domestic is at the moment
- Tiger is ramping up
- QF forced to lower yeilds esp in business class to compete with VA
- VA increase its corporate share of the market

All of the above is squeezings QF bottom line.
 
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qfvhoqa
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RE: QF First Half Result - AUD$223m Profit

Wed Feb 20, 2013 11:54 pm

These results seems to bolster Alan Joyce's plans for QF. Though I am questioning that all A332's are going domestic. Might be tough to fill an A333 to all their Asian destinations. And with no slack in the A330 fleet for the refurbishments, perhaps another destination will go - MNL?

It was very interesting that since the EK partnership, bookings to some EU destinations are way up compared to the BA partnership. "We sold 4 times the number of seats to BCN, 13 times more to MUC, 14 times more to CPH and 17 times more to MXP."
Qantas 2012/13 Half-Year Results - CEO's Address
 
vhebb
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 12:18 am

I assume the A333 and A332s will be getting the same cabins so they can be interchanged between international and domestic.
 
Sydscott
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 12:39 am

Quoting vhebb (Reply 13):
I assume the A333 and A332s will be getting the same cabins so they can be interchanged between international and domestic.

I assume that as well. Interestingly enough there is no mention of Skybeds in media release or supplementary materials however they have distinctly said "flat bed". I wonder if this means a totally new seat which is standard for Domestic and Regional flying? That would certainly make sense.

Quoting QFVHOQA (Reply 12):
"We sold 4 times the number of seats to BCN, 13 times more to MUC, 14 times more to CPH and 17 times more to MXP."

And this is only the first initial burst of bookings, there are still alot more destinations and combinations to come which will add to QF's bookings. It's definitely a step in the right direction though!
 
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legacyins
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 12:45 am

According to this article, $125m was from compensation from Boeing for the 787 delay.

http://sg.news.yahoo.com/qantas-wins...rofit-rises-222922736--sector.html
 
Sydscott
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 1:58 am

Quoting RyanairGuru (Reply 10):
SYD-CGK (1), SYD-MNL (1)

Don't forget that neither of these are daily flights. SYD-CGK and SYD-MNL are both 4 weekly at the moment so you have spare capacity in these two routes.

Not forgetting that with the A332 having lie falts, HNL was finally have a QF mainline aircraft with lie flat seating installed. So that'll be an improvement!
 
tullamarine
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 2:16 am

Quoting Sydscott (Reply 14):
I assume that as well. Interestingly enough there is no mention of Skybeds in media release or supplementary materials however they have distinctly said "flat bed". I wonder if this means a totally new seat which is standard for Domestic and Regional flying? That would certainly make sense.

I believe it will be different seating. As I understand it, the Skybed is heavier and less space efficient than "off-the-shelf" J class seating like the Weber seats used by VA and SQ on their A330s.
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RyanairGuru
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 2:22 am

Quoting Sydscott (Reply 14):
I wonder if this means a totally new seat which is standard for Domestic and Regional flying? That would certainly make sense.

Yep, that's what the press release that you linked said: "a new flat seat in business class"

Quoting QFVHOQA (Reply 12):
It was very interesting that since the EK partnership, bookings to some EU destinations are way up compared to the BA partnership. "We sold 4 times the number of seats to BCN, 13 times more to MUC, 14 times more to CPH and 17 times more to MXP."

I can only speak from one personal example: my mother. She takes several business trips per year to the USA, China and the UK.

She has been loyal to CO, and then UA, since 1995 when CO launched MAN-EWR. At the time we lived in the UK, and all her business travel was to the USA so it made sense. But she has stuck with them (and by extension SQ to Asia/UK) until now.

Given that her business in Asia is in China/Hong Kong - and never SE Asia - we had discussed the benefits of moving to OW for CX. Also, given that she lives in BNE, she has to connect in SYD or AKL to go to the USA. Obviously QF15/16 or QF8 are significantly more convenient. After the EK announcement she has finally decided to take the plunge and move over to QF. In the past 6 weeks she has already booked two business trips to the UK, which would have gone to SQ just a few months ago.

She is UA 1K [MileagePlus goes Silver, Gold, Platinum, 1K] so she is a pretty significant passenger to pick up, and QF snagged her because of EK. I'm sure she isn't the only one...
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Lufthansa
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 3:13 am

Quoting RyanairGuru (Reply 18):
She is UA 1K [MileagePlus goes Silver, Gold, Platinum, 1K] so she is a pretty significant passenger to pick up, and QF snagged her because of EK. I'm sure she isn't the only one.

Nope I'm hearing the same thing. That this FINALLY gives them the option of enabling them to stay loyal to one scheme for all their travel. I have a friend with family in Scotland that was thrilled. He easy does 100K a year and usually J long haul, sometimes F but never in Y unless it's domestic. I myself have friends in CPH, that split their time between Australia and Denmark. They used to use Thai. Not anymore, its now EK/QF!

Regarding the seat, I wouldn't be surprised to see the thompson vantage suite turn up.
http://www.thompsonaero.com/index.php/products/vantage-suite

It doesn't take up anymore room than lie flat at an angle seats, and has had a lot of success on the A330/A340 at Swiss, Finnair and Delta soon (and they're happy with one offering 1 seat less abreast on the 767). It's pretty much an off the shelf product that will just require some QF styling (shouldn't be too hard swiss tarted it up nicely but Finnair and delta left it looking a tad boring).
 
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qfvhoqa
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 3:40 am

Quoting Lufthansa (Reply 19):
Regarding the seat, I wouldn't be surprised to see the thompson vantage suite turn up.
http://www.thompsonaero.com/index.php/products/vantage-suite

The EADS Sogerma "Solstys" seat seems to be all the rage at the moment. But maybe QF will go with it's partner AA's new J seat? The one borrowed from CX?
 
RyanairGuru
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 3:52 am

Quoting QFVHOQA (Reply 20):
EADS Sogerma "Solstys" seat seems to be all the rage at the moment
Quoting QFVHOQA (Reply 20):
maybe QF will go with it's partner AA's new J seat? The one borrowed from CX?

The "problem" (if you want to call it that) is that those seats are too "different" to the SkyBed. I think that QF would want to keep an element of continuity between their J products.

Delta is one airline that has virtually chosen every design of J seat on the market, meaning that their long haul fleet is a bit of a mixed bag. United is another, although in that case it is because of different seat decisions by PMUA and PMCO*

Singapore Airlines, though, does have a 2 tier long haul/regional product, so I guess QF might go down that route.

Quoting Lufthansa (Reply 19):
Regarding the seat, I wouldn't be surprised to see the thompson vantage suite turn up.

I personally agree. That or the BAE Diamond: http://www.beaerospace.com/products/seating_business_class.htm
(most notably of CO and the new AA flagship product)



*somewhat bizarrely UA and CO actually use the exact same seat (BAE Diamond) but you would never actually know that, for a start UA's are installed omni-directionally.
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mariner
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 4:26 am

Quoting fiscal (Reply 1):

Things seem to be improving then..

You wouldn't know it if you only read Ben Sandilands over at Crikey, but those who are less determined to be a smart-arse than he is think that yes, they are improving.

Although even he, fairly gracelessly in my view, admits that times are (and have been) tough.

mariner

[Edited 2013-02-20 20:49:44]
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EK413
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 5:04 am

Quoting QFVHOQA (Reply 12):
And with no slack in the A330 fleet for the refurbishments, perhaps another destination will go - MNL?
Quoting Sydscott (Reply 16):
Don't forget that neither of these are daily flights. SYD-CGK and SYD-MNL are both 4 weekly at the moment so you have spare capacity in these two routes.

Let's not forget the 2 routes mentioned have received from time to time a B763 sub due to low demand so perhaps this is the plan too... I'm sure QF can sacrifice either a International OR Domestic B763 to operate MNL or CGK...

EK413
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Sydscott
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 5:35 am

Quoting EK413 (Reply 23):
I'm sure QF can sacrifice either a International OR Domestic B763 to operate MNL or CGK...

For relatively short routes, I'm sure the new Domestic A332's will be fine. If it's good enough for HNL at almost 10 hours, MNL and CGK shouldn't be an issue. That would free an A333 frame for something else.
 
qf15
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 5:44 am

BNE-SIN is staying 744 for the forseeable future, so there's 1x free A333.
 
Lufthansa
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 6:10 am

Quoting QF15 (Reply 25):

BNE-SIN is staying 744 for the forseeable future, so there's 1x free A333.

Yep and later in the year QF5 reverts back to 744 according the the current schedule (I checked for August!) so there is another A330 free. (SYD-SIN) Also nobody mentioned Bangkok in the earlier list!
 
Lufthansa
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 6:10 am

PS - well done to QF. this is a good result considering the challenges.
 
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EK413
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 6:47 am

Quoting Lufthansa (Reply 26):
Also nobody mentioned Bangkok in the earlier list!

TG you better watch your back as QF is coming after you with a 9:30am departure I'm confident QF will steal a few passengers from TG...

EK413
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smi0006
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 6:52 am

Good to seem the improvement in both international and domestic products. Although end of 2014 when they will start to be seen is a long log way a way. The flexibility to swap around the A330s would help add huge flexibility.

What seats do QR use in their 787s looks like a product to me. I prefer the look to that if the CX seats.

Hope we see an announcements regarding the refit of new overhead lockers and PTVs to the 738 next.

Concerning to see such a drastic drop in domestic yield, I wonder how VA is fairing.
 
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 7:35 am

Quoting smi0006 (Reply 29):
Hope we see an announcements regarding the refit of new overhead lockers and PTVs to the 738 next.

I know of atleast one aircraft with new 738 interior (without PTV's) but new bulkhead, dividers and overhead lockers. All of the 'old' builds will move to this look at the moment.
 
Sydscott
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 11:05 am

Quoting smi0006 (Reply 29):
Concerning to see such a drastic drop in domestic yield, I wonder how VA is fairing.

We will find out next week.  
Quoting airnewzealand (Reply 30):
I know of atleast one aircraft with new 738 interior (without PTV's) but new bulkhead, dividers and overhead lockers.

I tend to assume that the older 738's won't be getting PTV's but instead will receive IPAD's in the same way the 763's have. It'll be interesting to see what QF does on the A330 refit because it would be handy to have a consistent in-flight entertainment product throughout the Asia/domestic fleet.
 
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 12:28 pm

Quoting RyanairGuru (Reply 10):
Overall very impressive! It's great to see that International is improving

Is it a case of stemming the losses (through the reduction in routes since last year) or are things actually improving for QF International?

IMO, the real indicator will be the results this time next year when the QF-EK partnership will have contributed 9 months to the P&L.

Also how did QF snag $125m from Boeing a result of them cancelling their order for 787's? Were these actual penalties for the continued delays or did QF get their deposits back from the cancellation?
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qf002
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 12:53 pm

Progress!

QF will have made a remarkable transformation once these initiatives (plus others like the new uniforms, upgrades to J service, new international lounges etc) take force.

Knowing QF though, there will probably still be A330s flying around with a circa-2003 product come 2020...
 
Auchmithie
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 1:24 pm

Quoting RyanairGuru (Reply 18):
"We sold 4 times the number of seats to BCN, 13 times more to MUC, 14 times more to CPH and 17 times more to MXP."

Without figures this statement from Mr Joyce is a nonsense. Could be they've sold 4 and not 1 seat to BCN etc etc.......
 
airnewzealand
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 6:42 pm

Quoting qf002 (Reply 33):
QF will have made a remarkable transformation once these initiatives (plus others like the new uniforms, upgrades to J service, new international lounges etc) take force.

Qantas is moving in a cycle in regards to cabin upgrades/service 'enhancements'/soft changes.
The Business Service changes are still not complete, and look for more news around dining options later on in the year (around March) Expect more options/less structure around eating, appetisers, glassware, plates...

Perth Cityflyer is currently under review (been like this for 6 months now) and expect something new before years end.

The next cabin to get transformed is First (2013) followed by Main Cabin (2014) then back to Premium Economy. This is the current plan.

'soft' changes = Glassware/blankets/duvets/service structure/amenity kits/pyjamas etc...

Quoting sydscott (Reply 31):
I tend to assume that the older 738's won't be getting PTV's but instead will receive IPAD's in the same way the 763's have. It'll be interesting to see what QF does on the A330 refit because it would be handy to have a consistent in-flight entertainment product throughout the Asia/domestic fleet.

The were talking about moving to a consistent hard product amongst the entire fleet in 2010 (seat covers, PTV's, procedures) however, for whatever reason it was placed on the back burner, most likely due to cost. I can see this is starting to gain motion now, with the honeycomb decor, leather, inflight entertainment and now the announcement of the A330 reconfig, granted it will take years (they really needed the refurb last year).

SO what will the fleet be then?

30 A330 interchangeable between Domestic and International (they are currently doing this now so nothing new)
12+2 (14) A380
9 + ? 747-400 (reconfigured)

Interesting times ahead, look forward to VA's and AirNZ's numbers,
 
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 6:49 pm

Quoting Auchmithie (Reply 34):
Without figures this statement from Mr Joyce is a nonsense. Could be they've sold 4 and not 1 seat to BCN etc etc.......

If they have sold four seats instead of one, the statement is still true.

Barcelona is one of my favourite cities in Europe, but I can't imagine there are too many that want to fly from Oz straight through to BCN at the best of times. But every little helps.

mariner

[Edited 2013-02-21 10:52:38]
aeternum nauta
 
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 8:07 pm

Congrats to QF.   

Quoting jetblueguy22 (Reply 5):

Glad to see QF is turning things around. It should be interesting to see how much the EK partnership helps. I've only flown them a couple of times but I enjoy their service quite a bit.
Pat

The EK partnership should boost revenue and cut costs nicely.

Quoting bobloblaw (Reply 7):
What is happening in the domestic market that has caused a reduction in profits.

Besides the competition, how is the Australian domestic economy doing?

Quoting aussie747 (Reply 11):
Probably the bloodbath that domestic is at the moment
- Tiger is ramping up
- QF forced to lower yeilds esp in business class to compete with VA
- VA increase its corporate share of the market

Ouch... bloodbath seems right for such a small market.

Quoting QFVHOQA (Reply 12):
It was very interesting that since the EK partnership, bookings to some EU destinations are way up compared to the BA partnership. "We sold 4 times the number of seats to BCN, 13 times more to MUC, 14 times more to CPH and 17 times more to MXP."

I'm not surprised there is a jump. MUC was a decent sized market, so this implies that QF's competitors lost business. I personally wouldn't fly to LHR and backtrack to any of the listed cities... I see no way QF doesn't come out ahead with the EK partnership.


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Sydscott
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 10:01 pm

Quoting mariner (Reply 36):
If they have sold four seats instead of one, the statement is still true.

Barcelona is one of my favourite cities in Europe, but I can't imagine there are too many that want to fly from Oz straight through to BCN at the best of times. But every little helps.

And I think Alan Joyce was referring to a particular booking week as well when he made that statement. It's an example, and a pretty powerful one, of the benefits that QF can derive from moving its connecting hub from LHR to DXB. More to the point these are pax that were flying other carriers to get there as well.

Quoting airnewzealand (Reply 35):
Perth Cityflyer is currently under review (been like this for 6 months now) and expect something new before years end.

If I could have a rant here, the last time I did SYD-PER, (a couple of weeks ago), I was somewhat surprised that QF had taken the Cheese and Crackers off of the Economy meal plates and had made them a separate service item after they had cleared the meal away instead of an ice cream. I don't know about anyone else, but I always liked the ice cream. LOL
 
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qfvhoqa
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 10:36 pm

Quoting sydscott (Reply 38):
And I think Alan Joyce was referring to a particular booking week as well when he made that statement. It's an example, and a pretty powerful one, of the benefits that QF can derive from moving its connecting hub from LHR to DXB. More to the point these are pax that were flying other carriers to get there as well.

I think it shows that people are willing to book QF for status/points reasons, as all these flights were already available as EK flights. I doubt many would switch from EK to QF coded flights (anecdotal evidence suggests QF prices are higher for the same flights). Might be that SQ was the main target of the QF-EK alliance, but also TG, EY will likely lose these pax.
 
Auchmithie
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 11:46 pm

Quoting mariner (Reply 36):

Quoting Auchmithie (Reply 34):
Without figures this statement from Mr Joyce is a nonsense. Could be they've sold 4 and not 1 seat to BCN etc etc.......

If they have sold four seats instead of one, the statement is still true.

Yes. However the Qantas revenue share of 1 seat on QF metal to LHR and then a BA codeshare LHR-BCN may well exceed that of 4 seats to BCN if flown entirely on EK metal....
 
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mariner
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RE: QF First Half Result - AUD$223m Profit

Thu Feb 21, 2013 11:58 pm

Quoting Auchmithie (Reply 40):
Yes. However the Qantas revenue share of 1 seat on QF metal to LHR and then a BA codeshare LHR-BCN may well exceed that of 4 seats to BCN if flown entirely on EK metal....

Indeed, and I assume some may fly Emirates all the way. I doubt all of them will.

For myself, I like to swap airlines whenever I can, experience as many as possible on one ticket. You should see some of my itineraries.  

mariner
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fiscal
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 12:04 am

Quoting mariner (Reply 36):
Barcelona is one of my favourite cities in Europe, but I can't imagine there are too many that want to fly from Oz straight through to BCN

Barcelona is an up and coming cruise port, and Aussies do like a cruise.

Quoting sydscott (Reply 38):
I don't know about anyone else, but I always liked the ice cream. LOL

I second that, and when they are well frozen, all the better, (just have to be careful not to break teeth)
 
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mariner
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 12:20 am

Quoting fiscal (Reply 42):
Barcelona is an up and coming cruise port, and Aussies do like a cruise.

Sure, and now they can get there. But they can also take cruises from many other ports in the UK and Europe.

Don't get me wrong - Barcelona was a considerable shock to my system when I first went there, I fell in love with the city (although I know others who have had a bad experience there - a bit "Bohemian" - LOL) and it's the gateway to a lovely coast, starting at Sitges.

I know many others, especially the well-heeled crowd, who prefer the Italian Riviera, Rapallo and Portofino (gorgeous but verrrry expensive) or the Amalfi coast, and others, also well-heeled, who prefer the good ol' French Riviera.

I'm not sure why Barcelona has become a bit of a cause. Keep the Aussie cruise ship crowd away, I say.  

mariner

[Edited 2013-02-21 16:31:31]
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Gemuser
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 12:28 am

Quoting Auchmithie (Reply 40):
may well exceed that of 4 seats to BCN if flown entirely on EK metal....

I read the statement that QF has seen the four fold increase, not EK. To me that means the pax flew QF to DXB then EK, otherwise the new arrangement makes no sense. And that's the point those pax did not fly SQ/TG/MH/CX/KE/ETC instead they flew QF as far as DXB. I'll bet QF sees more of the fare for SYD/MEL-DXB than they ever did via LHR, BECAUSE those extra 3 pax did not fly QF at all.

At least that's my assumption.

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Sydscott
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 12:30 am

Quoting mariner (Reply 43):
Keep the Aussie cruise ship crowd away, I say

If only we could get them out of Sydney as well.....................but then that's what we have Jetstar for.  
Quoting Auchmithie (Reply 40):
Yes. However the Qantas revenue share of 1 seat on QF metal to LHR and then a BA codeshare LHR-BCN may well exceed that of 4 seats to BCN if flown entirely on EK metal....

I would seriously doubt that although we have no proof either way. If that was the case QF may as well have stuck with BA.

Quoting QFVHOQA (Reply 39):
I think it shows that people are willing to book QF for status/points reasons, as all these flights were already available as EK flights. I doubt many would switch from EK to QF coded flights (anecdotal evidence suggests QF prices are higher for the same flights). Might be that SQ was the main target of the QF-EK alliance, but also TG, EY will likely lose these pax.

Remember what Tim Clark said about the QF Frequent Flyer progam being a primary motivator for EK to get into bed with QF? Again, this provides some evidence to back his assertion about its power and effectiveness. And I'd say that SQ, TG, EY and every other airline flying between Europe and Australia is a target for QF-EK. For EK, this is all about expanding their DXC hub and mining the QF domestic FF scheme. For QF, this is all about recapturing lost customers through more direct services.
 
RyanairGuru
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 12:33 am

Quoting Auchmithie (Reply 40):
However the Qantas revenue share of 1 seat on QF metal to LHR and then a BA codeshare LHR-BCN may well exceed that of 4 seats to BCN if flown entirely on EK metal....

You are missing the point.

Very few people (including loyal QF passengers) were prepared to go through LHR to get to FCO or ZRH, for example. You are overflying your destination by 2 hours, connecting in LHR (which is no-one's favorite pastime), and then flying two hours back again. Therefore people were flying SQ, EK, EY etc.

Let's say that those 4 passengers to BCN previously flew SQ or EY and built up miles/status with KrisFlyer or Etihad Guest. Guess who they are going to fly domestically or to the USA, QF mainline's two profit centres.

QF were, in all likelihood, NEVER going to make a profit flying to Europe, with the possible exception of LHR O&D. Receiving no (or very limited) revenue on an EK ticket is better than negative revenue (!) on a QF/BA one. QF has now cut the 'liability' of flying to Europe, while significantly expanding their European network. In doing so they hope to draw SQ, CX, EK and EY passengers to Qantas (which by some personal accounts are proving successful in) so that they fly QF where the money is.

This is less about flying to Europe than not flying to Europe, while drawing passengers onto the rest of the network. It's an incredibly smart strategy (and I give a lot of credit to Borghetti for pioneering it at VA)


Turning back to aircraft utilisation...

Quoting Lufthansa (Reply 26):
Also nobody mentioned Bangkok in the earlier list!

If you were referring to my list in #10, then I draw you attention to

Quoting RyanairGuru (Reply 10):
SYD-BKK (1)

 

While BNESIN is staying 747 for the time being, I would expect it to revert back to an A330 at some point, perhaps the beginning of the northern winter. SYDSIN might well remain a 747, so that would free up some slack in the 333 fleet. With MNL and CGK being less-than-daily (I wasn't aware of that) then that would leave 2 spares.


Looking at the 747 fleet, we know that there will be 9 frames staying in the fleet. They would be: BNE-LAX (2), SYD-LAX-JFK (2), SYD-DFW (2), SYD-NRT (1.5), SYD-JNB (1.5) = 9, no spares. Now, the two A380s coming next year will most likely go onto QF7/8, freeing up two 747s. One could do SYD-SIN, leaving one spare.

This would leave them with 2 spare A333s and 1 spare 747. Given that SYD-NRT and SYD-SIN could be subbed with 333s, this could effectively give 1.5 spares per fleet, a realistic number.

The bigger question is what happens during the A330 refurbishment program. The 767s are leaving "by mid-2015", only 6 months after the 330s start to be refurbished "beginning in late 2014". Therefore they obviously aren't planning to cover the lost capacity by keeping HNL on the 76, and possibly backfilling MNL and CGK.

The obvious question therefore becomes, when are they planning to retire the non-remaining 747s by? If that was, say, 2016, that would allow routes such as BNE-SIN and MEL-SIN to be upgauged on the short term so that 330s can be taken out of the system. The other option would be the draw 332s from domestic. Out of interest, could anyone guess how many 332s would be needed for PER + SYD-MEL/BNE? Given the significant increase in capacity over the 767, they would probably use fewer 332s on the East Coast than they do 767s, i.e. 1 x 332 + 1 x 738 = 2 x 767. In light of this, they might be able to spare 332s to cover for 333s going through re-fits.

We shall see...
Worked Hard, Flew Right
 
qf002
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 12:49 am

Quoting airnewzealand (Reply 35):

Cheers! Looking forward to hearing about some more of the changes.

Quoting airnewzealand (Reply 35):
30 A330 interchangeable between Domestic and International (they are currently doing this now so nothing new)

What they're doing at the moment using international aircraft on domestic flights. They're moving towards a fleet where they can do more to respond to changes in demand (ie they could swap 10 A333s for 10 A332s internationally if there's a big drop in regional demand in 5 years).

Quoting Auchmithie (Reply 40):
Yes. However the Qantas revenue share of 1 seat on QF metal to LHR and then a BA codeshare LHR-BCN may well exceed that of 4 seats to BCN if flown entirely on EK metal....

But QF now has an extra seat to sell to LHR, which should generate at least as much revenue/profit as it does today. Whatever they do get from EK (and it won't be much if the trip is EK all the way) is just additional money on top of that.

What I would be interested to see is what the impact on EK bookings has been. It's great if QF is seeing a 17x increase into MXP, but EK won't be happy if that correlates to a 17x decrease in their bookings from Australia to MXP.
 
Auchmithie
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 1:14 am

Quoting qf002 (Reply 47):
Yes. However the Qantas revenue share of 1 seat on QF metal to LHR and then a BA codeshare LHR-BCN may well exceed that of 4 seats to BCN if flown entirely on EK metal....

But QF now has an extra seat to sell to LHR, which should generate at least as much revenue/profit as it does today.

Provided that they sell that seat when they now only have London O&D to do it.

With Mr Joyce's claim that there's now up to 17 x the number of non O&D passengers wishing to get onto the SYD/MEL-DXB sectors in order to connect onto EK metal, Qantas is going to need to find an awful lot of DXB-LHR pax in order not to lose on DXB-LHR what it makes on SYD/MEL-DXB.
 
Sydscott
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RE: QF First Half Result - AUD$223m Profit

Fri Feb 22, 2013 2:35 am

Quoting Auchmithie (Reply 48):
Qantas is going to need to find an awful lot of DXB-LHR pax in order not to lose on DXB-LHR what it makes on SYD/MEL-DXB.

When this all comes out in the wash, it'll be interesting to see what QF/EK do to maximise the use of the combined LHR slots. It makes no sense for QF to be flying half empty A380's to LHR so I'd say they will rejig the schedule to fill the QF capacity and maybe there will be a temporary reduction in EK service to LHR? If QF is truely picking up additional pax, EK will need additional lift into Europe anyway so this may not be a major issue.