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Qantas in Crisis – Announces $2.84 billion loss!

August 28, 2014

art-alanjoyce1-420x0

Qantas has announced a staggering $2.84 billion dollar this morning, shocking market analysts who were anticipating losses of around $800 million.

It is the worst result in the airline’s history.

Qantas CEO Alan Joyce called the result “confronting.”

“There is no doubt today’s numbers are confronting, but they represent the year that is past,” Mr Joyce said.

“We have now come through the worst. With our accelerated Qantas Transformation program we are already emerging as a leaner, more focused and more sustainable Qantas Group.”

However, the positive spin is something that Joyce has spruced before.

At the Qantas AGM in 2013, Joyce announced that Qantas had a “clear strategy” that was “delivering results”, yet just seven weeks later, seemingly out of the blue, announced an expected loss of up to $300 million.

In the months before Joyce took over as Qantas boss in November 2008, Qantas posted a record $969 million profit.

Joyce earns an annual salary package of $5 million.

Qantas is already cutting 5,000 jobs over the next three years to try to rein in costs.  Today’s results will likely increase these numbers. 

 

 

 

 

 

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63 Comments leave one →
  1. August 28, 2014 9:06 am

    Only $2.84 billion….?

    Gee, any higher and people might start to question Alan Joyce’s judgement.

  2. Tom R permalink
    August 28, 2014 9:16 am

    Perhaps stranding your entire client base for base political purposes isn’t a canny management tactic after all?

    Mind you, imagine how many people they get to sack now. Does this mean joyce can get another lazy $mill in salary?

    With our accelerated Qantas Transformation program we are already emerging as a leaner

    So, is this what hockey was talking about ❓ 😉

  3. August 28, 2014 9:18 am

    LOL…. 🙂

  4. Walrus permalink
    August 28, 2014 9:21 am

    “There is no doubt today’s numbers are confronting, but they represent the year that is past,”

    ROFLMAO

    And so will be his Bonus when shareholders hear about it

  5. Walrus permalink
    August 28, 2014 9:24 am

    Mr Joyce said Qantas was expected to return to an underlying profit before tax in the first half of the financial year

    Read more: http://www.smh.com.au/business/aviation/qantas-posts-confronting-28b-loss-after-hefty-writedowns-20140828-109ba6.html#ixzz3BdbMwHLa

    Wayne Swan used to say something like that……………………….in fact he and Gillard said it 500 times

  6. August 28, 2014 9:40 am

    Alan Joyce: “We’re making our business smarter”…… LOL!

  7. Walrus permalink
    August 28, 2014 9:47 am

    Making our business smarter ?

    Bullshit……………………….it was only a matter of 6 months ago that they were still in a capacity war with Virgin adding an extra 2 flights everytime Virgin added 1.

    That’s fucking dumb

    It appears $2.6 B of the loss was from writing down the value of all their fleet of Boeings but not the Airbus Fleet.

    I bet Joyce didn’t see that coming.

    #ExternalauditorswreakhavoconJoycefuture

    #Neverbuysharesinanairline

  8. August 28, 2014 9:49 am

    Joyce: “We have clear evidence of a brighter future..”

    ROFLMAO

  9. Tom R permalink
    August 28, 2014 9:51 am

    Hunt has clear evidence of a brighter future..”

    If the education minister went to university under his own deregulated system, he would be paying off his debts until the age of 64. Who would willingly sign up for such a scheme?

    http://www.theguardian.com/commentisfree/2014/aug/26/the-maths-on-university-fees-are-in-its-checkmate-for-christopher-pyne?CMP=twt_gu

    Well, I guess it’s ok if you can find someone to waive fees for you.

  10. August 28, 2014 9:53 am

    Alan Joyce: “We’re making our business smarter”…… LOL!

    Small in stature , small in ability, small in share price.

    Why the fuck is this fucktard still running this company? Was he installed by a consortium of the competitors?

  11. Tom R permalink
    August 28, 2014 10:13 am

    Why the fuck is this fucktard still running this company?

    Because he is taking it exactly where his betters want him to. Off a cliff.

    Can’t have Government owned enterprise making money.

    Aus Post is next on the agenda.

  12. Tom of Melbourne permalink
    August 28, 2014 10:15 am

    Lancing the industrial relations boil at Qantas was necessary.

    But it is now time for Joyce and Clifford to step aside and allow some fresh people to reestablish a viable commercial operation.
    ======
    ‘government owned’? Not for about 20 years.

  13. TB Queensland permalink
    August 28, 2014 10:19 am

    Its the UNIONS dope!

    ToM told me last year … or was it the year before last … when I blamed JOYCE poor MANAGEMENT!

    How much does this twit get paid?

    And just WTF is an underlying profit

  14. TB Queensland permalink
    August 28, 2014 10:21 am

    But it is now time for Joyce and Clifford to step aside and allow some fresh people to reestablish a viable commercial operation.

    Now??? It was time years ago … as I said …

  15. Walrus permalink
    August 28, 2014 10:21 am

    And the share price increases 6% to $1.37

    Go figure………………………..Apparently it was better than expected LOL

    Don’t buy shares in airlines

  16. Tom R permalink
    August 28, 2014 10:24 am

    lolz @ yomm

  17. Walrus permalink
    August 28, 2014 10:28 am

    “”…………And just WTF is an underlying profit …………..””

    Put simply (since I realise who this is for LOL) he’s talking about profit from the airline operations plus the loyalty program ignoring any massive writedowns due to poor business decisions of previous years throwing the Company back into Loss.

    $2.6B of this years loss was due to purchasing Boeings when they were bought at AUD$0.68 which with the AUD now at 92c means were until the auditors got to them being valued too highly in the accounts.

    They are now at a more appropriate value.

    International still made a Loss I see

    Yeah I know………………………Zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz !

    Wake Up…………………….Wake Up

  18. Walrus permalink
    August 28, 2014 10:30 am

    “Can’t have Government owned enterprise making money.””

    ROFLMAO…………try and keep up TomR

  19. Tom of Melbourne permalink
    August 28, 2014 10:34 am

    Qantas is a high cost traditional airline. About a dozen unions have coverage, the officials love their coverage, it gets them on regular junkets and provides upgrades.

    The management position during the dispute with the ALAEA was generally supported by the other maintenance unions. The ALAEA is seen as a prima donna union that doesn’t allow the trades to develop their skills and careers. The ALAEA dispute involved their claim to have Qantas build another high cost maintenance facility!

    Most commentators don’t really bother to understand the complexity of IR in Qantas.

    However, Joyce did some hard work in reform, it’s best he moves on now.

  20. Tom R permalink
    August 28, 2014 10:55 am

    ROFLMAO…………try and keep up TomR

    my bad, Aussie owned. Government restricted.

  21. Tom R permalink
    August 28, 2014 10:56 am

    Qantas is a high cost traditional airline.

    joyce has made sure of that.

    Trying to blame it still on hte unions is ludicrous.

    Not that that will stop you 😉

  22. Tom of Melbourne permalink
    August 28, 2014 11:10 am

    I’m not ‘blaming unions’ – but it’s no use people constantly criticising Joyce on IR when the majority of unions recognised the need to get the ALAEA under control.

    If unions allowed Qantas the flexibility and cost structure of (say) Virgin, it would be far more viable. I’ve never heard a Qantas critic address that issue.

  23. Neil of Sydney permalink
    August 28, 2014 11:12 am

    Some Unions do cause trouble. But if they get above award wages for their members i guess the workers are happy. But wages at Qantas do look high. I guess that is why they started Jetstar. Still good wages but not over the top like they are at Qantas. Baggage handlers are well paid.

    http://www.theaustralian.com.au/opinion/letters/its-hard-work-being-a-qantas-baggage-handler/story-fn558imw-1226165298654

    I THINK the travelling public should have some idea of just how poorly off our Qantas baggage handlers are.

    For starters, they get paid upwards of 20 per cent above the industry rate and earn between $70,000 to $85,000 a year including penalty rates but not overtime. Overtime is paid at double time as are any public holidays and if you happen to be rostered off on a public holiday you get a day off in lieu later on……………………..They get five weeks’ annual leave, generous sick leave conditions and a well managed and flexible superannuation fund.”

    I guess with overtime Qantas baggage handlers could be on $100,000/year.

  24. Tom R permalink
    August 28, 2014 11:26 am

    I’m not ‘blaming unions’
    …………….
    If unions allowed Qantas the flexibility and cost structure of (say) Virgin, it would be far more viable.

    😆 😆 😆 😆 😆 😆 😆 😆 😆 😆 😆

  25. August 28, 2014 11:35 am

    🙂
    🙂
    🙂

  26. Tom of Melbourne permalink
    August 28, 2014 11:45 am

    Qantas would achieve an operating profit if it had the employment cost structure of Virgin.

  27. Tom R permalink
    August 28, 2014 11:50 am

    Qantas would achieve an operating profit if it had the employment cost structure of Virgin.

    Or didn’t have an incompetent nutcase as CEO

  28. August 28, 2014 12:07 pm

    Apparantly Joyce used to work for Ansett too.

  29. August 28, 2014 12:13 pm

    Alan Joyce is to Qantas what Caligula was to the Roman Empire,” says Senator Nick Xenophon. “You can’t believe a word he says.”

  30. Walrus permalink
    August 28, 2014 12:27 pm

    Perversely a couple of stockbrokers have upgraded QAN to a “Buy””

    Never Buy Shares in a Fucked Up Airline

  31. August 28, 2014 12:55 pm

    Qantas would achieve an operating profit if it had the employment cost structure of Virgin.

    They need to start at the top not the bottom…. Joyce is incompetent and clearly its not “Tall” poppy syndrome… how much further will he tank the share price before they ass him ?(metaphorically speaking of course) He must have nasty pictures of someone important in a compromising position.

    Some Unions do cause trouble.

    Yeah its all their fault Joyce is just a pawn in their evil master plan to put the company that they work for out of business…

    Is that one of your “here are the Facts moments”? , quoting from the UN..Australian..that oligarch masturbation tissue Murdoch keeps on life support as an instrument for such propaganda…. what a dross driveling dick

    FUCKTARD 🙄

    Alan Joyce is to Qantas what Caligula was to the Roman Empire,” says Senator Nick Xenophon. “You can’t believe a word he says.”

    Yeah pretty much like Sqweal is to the reality of truth…:-)

    Still waiting….Answer the Question with a straight answer you fact retardant thread diverting dickwad
    Is Abbott a good leader…?
    Is he a good PM?
    What are his enduring intellectual and affable attributes?
    What is his parliamentary legacy?
    What legislation has he championed and written that has benefited Australia?

  32. August 28, 2014 5:30 pm

    (Lost.? Pigs Arse. As any Personal Fluffer or Corporate-Pet will tell`ya; if you leave two point eight billion dollars layin around on the waiting-room coffee table; of course the onions will knock it off.)

  33. August 28, 2014 5:50 pm

    l see our Personal Fluffer is making excuses again for failed boardroom management. As an excuse the onions are blamed claiming `flexibility`(which is bullshit, lts dollars) but fails to explain why joyce should be getting the money he gets for failing, which by the way, is more than what 3-or-4 other `profitable` airlines are paying their ceos COMBINED #teabags

  34. Neil of Sydney permalink
    August 28, 2014 5:54 pm

    “which by the way, is more than what 3-or-4 other `profitable` airlines are paying their ceos COMBINED #teabags”

    Exactly. Same thing most probably goes for the workforce as well. It was management that agreed that Qantas baggage handlers get $100,000/year. They are both in it together.

    Same most probably goes for Ford, Holden and Toyota.

  35. TB Queensland permalink
    August 28, 2014 7:00 pm

    I’m not ‘blaming unions’ –

    What can anyone here say … chuckle …

    If unions allowed Qantas the flexibility and cost structure of (say) Virgin, it would be far more viable.

    You mean that Pommie billionaire is a better negotiator than the Irish Dickhead® that you support – constantly …

    ++++++++++++++++++++++++++++++

    Never Buy Shares in a Fucked Up Airline

    Or – never buy shares in airlines – period … or anything that you have to feed or paint …

    +++++++++++++++++++++++++++++++

    Same most probably goes for Ford, Holden and Toyota.

    Kneel, you may not have noticed but no-one is actually listening to you anymore … this has been a community announcement …

  36. Neil of Sydney permalink
    August 28, 2014 7:03 pm

    Fine but i will still post. Anyone is free to scroll past.

    It was management that gave workers at Ford, Holden, Toyota and Qantas wages way above everybody else.

    Well goodbye Ford, Holden, Toyota and Qantas.

  37. TB Queensland permalink
    August 28, 2014 7:09 pm

    It was management that gave Ford cars that didn’t sell in Oz …

  38. Neil of Sydney permalink
    August 28, 2014 7:20 pm

    I thought you said nobody listens to me.

    We seem to agree with one thing. It is managements fault.

    My opinion is that management bent over and gave the Unions whatever they wanted. Most probably because they voted themselves excessive salaries for management.

  39. Tom R permalink
    August 28, 2014 7:33 pm

    And it wasn’t wages that made them unaffordable.

    It was a Government not prepared to have them playing on a level field. Every country subsidises their automotive industry in some manner.

    Except, now, us.

  40. Neil of Sydney permalink
    August 28, 2014 7:38 pm

    We were subsidising the car industry. After Ford left the remaining companies wanted even more money.

    It wages high wages that made making cars in Australia unfordable.

    It is people like you that will cause us to lose whatever manufacturing we have left. We have gone from making almost everything in the 1970’s to importing everything now.

    And every manufacturing plant that has left says the same thing- it is too expensive to make things in Australia.

  41. August 28, 2014 7:41 pm

    Alan Joyce has terrible teeth. If I was earning $5million a year I’d at least go to the dentist occasionally….. #justsayin #qantas

  42. August 28, 2014 8:12 pm

    ”””this has been a community announcement””” 😉

  43. armchair opionator permalink
    August 28, 2014 8:39 pm

    Meanwhile over at Air NZ it’s a different story :

    http://tvnz.co.nz/business-news/air-new-zealand-profit-more-than-doubles-5547408

  44. Neil of Sydney permalink
    August 28, 2014 8:48 pm

    I would be interested to see the wages Air NZ pays its CEO and staff.

  45. August 28, 2014 9:02 pm

    ”””””””””Air New Zealand has more than doubled its profit for the 2013 financial year with the company’s best result in five years placing it among the best performing airlines globally.
    http://tvnz.co.nz/business-news/air-new-zealand-profit-more-than-doubles-5547408
    ””””””’via”armchair””’

    its amazing what an airline can accomplish in five years without alan joyce #teabags

  46. Neil of Sydney permalink
    August 28, 2014 9:35 pm

    Qantas appears to be a high cost airline because of Unions. And no CEO can change that.

    Jetstar seems to be doing OK because the wages are lower but still OK.

  47. egg permalink
    August 28, 2014 9:52 pm

    Qantas may need to cut off its international wing to remain viable.

  48. August 28, 2014 11:46 pm

    Fine but i will still post. Anyone is free to scroll past.
    Squeal seems to post a lot but wont answer any questions?… I think he;s a bit sheepish about his choice in men….

    Still waiting….Answer the Question with a straight answer Union hating sycophant dickwad
    Is Abbott a good leader…?
    Is he a good PM?
    What are his enduring intellectual and affable attributes?
    What is his parliamentary legacy?
    What legislation has he championed and written that has benefited Australia?
    Are you a member of a Union?

  49. August 28, 2014 11:51 pm

    airline related, this weeks aircrash investigation(repeat) was `alaska-261`,

    http://en.wikipedia.org/wiki/Alaska_Airlines_Flight_261

    it is probably my `favorite` aircraft related teabag disaster, which managed to kill 88 people for the handsome cost saving/cutting of 3-cents worth of grease and 20-minutes labor, making the grand saving of 0.00034 cents per life on the grease.(20min-labor_don`t-know)

    alaska had 6 more planes in the same condition, ready to drop from the sky, and the kicker in the alaska-261 story is, the faa/ntsb had been alerted by one of alaskas own engineers/tradies and he was suspended for `whistle-blowing, it is a wonderful example of happy teabags are to kill(murder) people by `incident` for such tiny financial amounts, and Govt captured by big-biz #teabags

    #or maybe the onions did it

  50. Tom of Melbourne permalink
    August 29, 2014 9:20 am

    TB, I’m surprised that you think the difference between Qantas and Virgin employment conditions has something to do with ‘clever negotiating’

    Qantas has all the baggage of a traditional airline-
    *Its maintenance heavy base in metropolitan Sydney
    *It has a dozen unions jockying for coverage and relevance- about 10 in engineering & maintenance
    *Provides in house catering
    *Maintains direct employment of most services

    The direct employment model provides high cost pay and conditions.

    Virgin has its heavy maintenance performed in low cost countries. It contracts out many of the airline services. It pays people less.

    This cost structure isn’t available to Qantas through ‘clever negotiation’.

    Change of this magnitude would probably require closing the airline for a while, and that seems to annoy some people.

  51. TB Queensland permalink
    August 31, 2014 10:13 am

    Virgin has its heavy maintenance performed in low cost countries. It contracts out many of the airline services. It pays people less.

    And has fkn awful slop food …

    Change of this magnitude would probably require closing the airline for a while, and that seems to annoy some people.

    ‘Tis a poor workman that blames his tools … Joyce needs changing …

  52. armchair opinionator permalink
    August 31, 2014 10:30 am

    Why does Alan Joyce hate his own employees?
    He has carried out open warfare on his own people.

  53. Tom of Melbourne permalink
    August 31, 2014 11:57 am

    AO, Joyce didn’t ‘declare war on his employees’

    The ALAEA represents a relatively small number of very highly paid employees. They are prima donnas who stymie training and career paths of trade qualified employees. The other 8 or 9 engineering & maintenance unions weren’t involved in the action. They would prefer a less self interested ALAEA.

    It isn’t just Joyce who thinks that union needs a little less control.

  54. Tom of Melbourne permalink
    August 31, 2014 2:19 pm

    Turf wars in Qantas…

    http://www.lawchat.com.au/index.php/unions-denied-exclusive-coverage-of-qantas-engineers/

    …unions argue about their coverage while they help run Qantas into the ground.

  55. September 1, 2014 2:11 pm
  56. September 2, 2014 1:28 am

    Seems our Personal Fluffer overlooks

    ””””’Posted on August 30, 2012 by Anne Wardell
    http://www.lawchat.com.au/index.php/unions-denied-exclusive-coverage-of-qantas-engineers/
    ”””””””””””’

    is 2-years old. Pretty-sure joyce hadn`t offered-up his 50% pay-cut back then. For some reason our Personal Fluffer seems to think everybody-else should be pay-clipped even before there is any problem declared by boardroom. #teabags

  57. September 2, 2014 1:42 am

    ””””*Its maintenance heavy base in metropolitan Sydney””””

    Let`s face it, the teabags wet-dream is to have the heavy-maintenance-base `off-shore` in some `slave-labor` location, just as footwear and textile have. In fact, teabags in all industries desire this, and lobby like all fcuk to do so. Teabags prefer to `trickle-down` on their consumer/workforce, believing that keeping them `poor` is good for the economy.

    .

    Too bad Seattle, Washington is the boom-town of teh-usa. #teabags

  58. Tom of Melbourne permalink
    September 3, 2014 3:01 pm

    Terry McCrann makes some reasonable points abut Joyce and Qantas…

    http://www.heraldsun.com.au/business/joyce-cops-false-rap-over-qantas-massive-loss/story-fni0d8gi-1227044388847

    … you need to also understand the exact nature of the two quite separate tsunamis that have been coming at Qantas, and how Joyce has — in my judgment, both boldly and effectively — crafted a sophisticated and integrated operational strategy to respond to them.
    ————-
    But the calls for Joyce to be sacked in consequence, or even just to be “preparing” his departure, say, next year, are not only unfair but show a yawning ignorance of the domestic and international aviation realities, and in truth, Qantas’s actually pretty impressive success in responding to them.
    ————-
    …critically and really fundamentally, there was no alternative to what Joyce did — starting with his controversial grounding of the airline to force some reality into industrial relations negotiations. Without which he really would have had no choice but to ground international, permanently.
    —————
    While it is Virgin, which lost around $60 million on domestic, that has been forced to call for peace. But just maybe too late. It will struggle to get back into the black, while Qantas group domestic could very well surge.
    In sum and in short, Joyce has actually steered the airline through some pretty tough times. But more than that, he has also been crafting an effective — crucially, integrated — long-term growth strategy.

  59. TB Queensland permalink
    September 3, 2014 3:06 pm

    Terry McCrann still around is he … chortle …

  60. armchair opinionator permalink
    September 4, 2014 10:24 am

    http://m.smh.com.au/comment/qantas-chief-alan-joyce-has-many-questions-to-answer-20140827-108wov.html

    …If you believe the Qantas spin machine (and believe me, it will be in frenzied overdrive) it’s everyone else’s fault, except, of course, that of Qantas.
    Its excuses over the years have included an unlevel playing field, higher fuel costs, difficult unions, a high or low Australian dollar (Qantas has blamed both in recent years) to name but a few. Qantas’ excuses for abysmal performance and grand plans for a turnaround just don’t stack up…

    …What sickens me the most is the impact on the rapidly shrinking workforce of 30,000 Qantas employees, whose loyalty has been rewarded with mass lay-offs. Those Qantas workers, together with the 117,000 small investors in Qantas (holding 10,000 shares or fewer) will bear the brunt of decisions made by management…

    …When I asked Qantas in a Senate inquiry this year whether institutional investors received special access to information, the answer was that such briefings were “commercial in confidence”. This is an insult to every small investor in the country. In a sharemarket, all shareholders should have equal access to information about a company’s future…

  61. Tom of Melbourne permalink
    September 4, 2014 2:06 pm

    Touching on an even more critical airline issue…

    Just as a matter of interest, is anyone else following the debate about reclining seats on aeroplanes?

    I find people that recline their seats immediately after take-off to be demonstrating the height of rudeness, it will continue to cause ugly arguments between passengers unless airlines adopt some guidelines for passengers, such as – don’t recline seat unless the flight is over 3 hours and at a time when people can be expected to sleep.

    Here’s the link for making this type of suggestion to Qantas –

    http://www.qantas.com.au/travel/airlines/customer-care-feedback-form/global/en

    (…and yes, it’s dreadful – I travel economy on domestic flights!)

  62. Tom of Melbourne permalink
    September 4, 2014 2:08 pm

    AO, I quite like Nick X, but he’s a dunce when it comes to running an airline, and probably any other business for that matter.

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