Qantas to ground entire fleet

[Kadachiman]

A sad day for air travel history in Australia as Qantas is an Australian icon.

Qantas has grounded its entire domestic and international fleets indefinitely and announced the lockout of all employees covered by the agreements that are currently in dispute.
http://news.ninemsn.com.au/national/8367129/qantas-will-lock-out-employees

[ArcherII]

Oh my! I knew they were grounding some 744s due to this lockout. But I've never thought that it would lead to this!

[Ansettaddict123]

QF estimated that they were losing $15M a week because of union action.
Grounding the entire airline is costing them $21M a day.

Now tell me, is our good friend Alan [endsarcasm]  justified in his decision?
With the unions declaring a ban on industrial action for the next 3 weeks, along with the massive cost of grounding the entire operation, I would like to see someone tell me he is.

This is a boon for Virgin Australia and I wish them all the best.

[slither360]

Qantas is going to be Ansett all over again.

Australia is cursed!

[alexgv1]

Australia is cursed!

Oh so that's why you're sending me there next game world then 

[swiftus27]

Oh so that's why you're sending me there next game world then 

People tell you where you have to play aws?

[slither360]

People tell you where you have to play aws?

No, he asked for advice as to where to go, and zilchster suggested Australia. He is under no obligation to go anywhere, or even enter a gameworld at all.

[Kadachiman]

QF estimated that they were losing $15M a week because of union action.
Grounding the entire airline is costing them $21M a day.

Disputes have been ongoing for 3 months, therefore the loss could be $180M (12 x $15M) depending on what version you listen too - Qantas or Unions.
With no resolution in sight which means the loses may have kept adding up.

Grounding the fleet will bring decisive action one way or another, so let's say max of 5 days @21M per day = $105M
So maybe it's not such a bad choice by Qantas

[alexgv1]

People tell you where you have to play aws?

No wrong end of the stick swifts. Bob is my alliance manager. We try to coordinate based to get global coverage. I asked where should I go (somewhere new) Oz was suggested and I liked the idea 

[Dave4468]

With my politics hat on I think its a brilliant move by Qantas.

If the unions don't back down from what I understand the Aussie government will force the issue to be solved. I think its throw a curve ball to all involved, all the unions, the government and the people are pretty gobsmacked it has happened. It may work out well for Qantas, it'll leave the unions in no doubt the action they will take.

And with my right wing politics hat it's great to see a company attacking a malicious union matter head on for a change.

[slither360]

With my politics hat on I think its a brilliant move by Qantas.

If the unions don't back down from what I understand the Aussie government will force the issue to be solved. I think its throw a curve ball to all involved, all the unions, the government and the people are pretty gobsmacked it has happened. It may work out well for Qantas, it'll leave the unions in no doubt the action they will take.

And with my right wing politics hat it's great to see a company attacking a malicious union matter head on for a change.

Actually, the government will just force arbitration. That could come out in the unions favor or not. there is no guarenteed result.

[alexgv1]

I think tables are against Qantas with the government and definitely with public opinion. They have got a lot of bad press in recent years, for example outsourcing maintenance while Virgin Australia opens maintenanc base in Oz making thousands of local jobs. The other carriers will definitely benefit the most.

[Dave4468]

http://www.bbc.co.uk/news/world-asia-pacific-15513219

Qantas have won the legal battle. The Australian government has ordered Qantas to start flying again but more importantly "The ruling requires the unions to return to the negotiating table and come to an agreement within 21 days or face binding arbitration." So basically the unions are now tied.

Makes a change to the standard response to malicious unions.

[JumboShrimp]

I just ordered something to be shipped from Autralia by DHL.  Does DHL still have their own aircraft or do they use airlines (such as Quantas)?

[Ansettaddict123]

QF estimated that they were losing $15M a week because of union action.
Grounding the entire airline is costing them $21M a day.

Disputes have been ongoing for 3 months, therefore the loss could be $180M (12 x $15M) depending on what version you listen too - Qantas or Unions.
With no resolution in sight which means the loses may have kept adding up.

Grounding the fleet will bring decisive action one way or another, so let's say max of 5 days @21M per day = $105M
So maybe it's not such a bad choice by Qantas

Yes, but what is the long term damage to the brand as a result of such extreme action?

Particularly coming up on the Christmas period, QF's actions have put Virgin at a distinct advantage.

[JumboShrimp]

Yes, but what is the long term damage to the brand as a result of such extreme action?

Particularly coming up on the Christmas period, QF's actions have put Virgin at a distinct advantage.

In my opinion, it is worse for the "brand" if you don't know what is going to happen, if you don't know what to tell your customers, if you tell customers one thing, and because of union action, you can't deliver.  A defninte yes or a definite no is better than maybe.  Who wants to be stranded at an airport, not knowing whether your flight will take off?  Or even worse, comleting 1 leg of the flight, with transfer flight cancelled...

I had some relatives flying BA during one of their periodic union / labor issues and the volcano in Iceland.  They understand the volcano, and sympathize with the airline.  A flight cancelled because of a strike? That is more infuriating, and damages the reputation more, IMO...

[swiftus27]

They are flying again.
http://www.cnn.com/2011/10/31/travel/australia-qantas/index.html?hpt=hp_t2

[slither360]

Good piece by Brett Snyder.

http://crankyflier.com/2011/10/31/qantas-goes-nba-locks-out-employees-and-shuts-down-over-the-weekend/