ABC Inside Business on TT grounding, Australian aviation, Qantas restructure

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  1. thewinchester
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    thewinchester Silver Member

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    The ABC program Inside Business spent over 15min looking at Australia's aviation industry today, specially in light of the grounding of Tiger Airways Australia (TT), industrial relations pressures facing Qantas (QF) and the concerted efforts of Virgin Australia (DJ) to grab a stable foothold in the corporate market.

    A lengthy interview was also had with QF CEO Alan Joyce on these topics, the carriers international restructure planned for 24 August, and the pressures its facing during industrial negotiations with various aviation unions which it feels pose a threat to the airlines continued viability.

    You can view the full video online at (15min combined). Transcripts for each of the pieces are also available from here (Wounded Tiger) and Here (Qantas benefits from Tiger woes).

    Now for the highlights...

    In Australia, TT accounts for about 5% of the total DOM aviation market, with TT stating that 30k+ pax have been affected this week alone from its grounding. QF Group estimates that it has picked up over 10k+ of these pax between QF and Jetstar (JQ), with the remainder either going to DJ or as they predict not even flight at all due to the price sensitivity of pax at that end of the market.

    In light of the TT groundings, the share prices of both QF and DJ have received a good shot in arm, picking up part of the gains lost after both dropping nearly 1/3 as a result of the GFC, fuel price rises and natural disasters affecting their ability to do business.

    Some of the highlights from both pieces:

    DJ CEO John Borghetti, obviously taking a stab at his former employer (QF) said on industrial relations issues:

    Countering the views on the QF response to labour issues, John Guadagnuolo, an investment manager for Aviva Investors stated:

    Borghetti again, this time on feedback received on DJ's new business orientated hard product:

    QF also seems to be revelling in who the parents of TT are, not missing an opportunity to connect their long standing rival SQ back to them at every opportunity:

    On TT impact on fare pricing, Joyce stated:

    And when pressed on the pilots in respect of the industrial issues, Joyce didn't mince his words.:


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