What if...........

[Bob C]

With Virgin Australia going from strength to strength and QANTAS always in the news for the wrong reasons, I pose this HYPOTHETICAL.

What if John Borghetti had been chosen as the CEO of QANTAS instead of Alan Joyce. What could he have done or be doing to reinvent QANTAS ?

[Ryan K]

For a start, we may be seeing fuel efficient 777's with kangaroos on their tails flying around to places like SFO and BOM. There'd also be greater engagement with staff and a much happier workforce. But that's just my opinion.

[Rowan McKeever]

Seems to me it probably wouldn't look very different to the Virgin we're seeing at the moment... his goal with Virgin is to innovate and take the lead in the market which is precisely what Qantas needs.

777s were a great idea for Qantas, possibly a little too late to go there now with the shape things are in. I doubt 777s would've made a difference to the BOM situation though as there was a lot more at play there than the aircraft type.

[Dave Dale]

In relation to Qantas, I have read in a few articles over the last year that A380's aren't paying for themselves for some airlines. (I do not have any links to the articles). Would this be the case at Qantas? And if so, would the case for a 747-8I be more appropriate considering they are smaller and more adaptable to Qantas ultra long haul markets?

Dave

[Andrew P]

no unions
staff on lower wages
outsourcing increased

just for a starter

[Rob R]

Virgin staff do have unions.

[Adam J]

My feeling is that it wouldn't make a difference.

Joyce is following the wishes of the Board of Directors.

I think the question should be who is advising the Board??

[Sarah C]

Agree Adam - the board make the big decisions, the CEO goes along with it. If Borghetti was in charge, he may want to do things differently but the board would have the final say.

[Rowan McKeever]

The board would be advised by the CEO, CFO & COO who in turn would be advised by the various technical experts within the company. Just because the board has the ultimate legal accountability & authority doesn't mean the CEO isn't running the company. In fact in a well run business that is exactly how it does work.

I'm also curious to know what outsourcing you're referring to in terms of Virgin/Borghetti??

[Ash W]

For a start, we may be seeing fuel efficient 777's with kangaroos on their tails flying around to places like SFO and BOM. There'd also be greater engagement with staff and a much happier workforce. But that's just my opinion.

Oh you mean like the ones JB ordered for Virgin? Ooops sorry forgot they were ordered by previous management and JB cancelled the remainder of the 777's who then ordered the A330 for Virgin instead.

With the 777 I think many would agree that the models that would have been ideal for Qantas are the ones that have come out in the last few years at which point Qantas had made the decision to go for the 787 and A380. The earlier models didn't suit Qantas's network at the time, hence why they weren't ordered.

[Bob C]

Interesting comments about the QANTAS board and its influence on management or otherwise.

No doubt all the 12 members of the present board bring their vast knowledge and experience from many industries to QANTAS as in the case of other companies.

But from what I can ascertain, only three of the present members - Alan Joyce, James Strong and Patricia Ward have previous experience in aviation. I suppose four if you include General Peter Cosgrove as he worked with helicopters in Timor ad elsewhere.

Could the lack of aviation experience on the Board be a problem ?

[Ellis Taylor]

I don't think a lack of experience in aviation would have much bearing on the company. The board is really there to represent the interests of the shareholders, while the CEO works with the board to set strategy and run the day-to-day operations. Many other companies, especially those listed on the ASX, have boards with members who have cut their teeth in other industries, but in doing so may have a better understanding of corporate governance or be able to bring a wider perspective into the mix.

I might get flamed for saying this, but I think often airlines have benefited more from having senior management come in from outside the industry. Air NZ's turnaround under Ralph Norris is a good case in point. My perception (and I am open to being told it is wrong) is that with aviation being a pretty incestuous world that groupthink can set in among managers who have been around the industry a fair while, whereas those who come from outside can sometimes bring some new thinking and challenge set ideas. Sometimes that doesn't work out and can become dysfunctional, but sometimes it allows an airline to push forward.

[David Heath]

I'm sick of hearing the 777 Qantas thing. We all know way back when they were too big/heavy for the regional Asia routes and too small for the long haul. Ash W is absolutely right. The A330 is the perfect aircraft for regional and the A380 exactly what was needed for long haul (when the decisions were made). The 744ERs were also a better option than getting 77Ws. There was a really good article on this a couple of years ago that fully debunked the 777 nonsense (I can't find it again though). But yes, the 787 is the perfect replacement for the A330, better than the A350 for what Qantas will use them for, but they don't need them as urgently.