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Fujipyjama
Fujipyjama
Travel agents commissions on the line - Qantas
Source: MELBOURNE, May 31 AAP
Published: Monday May 31 2004, 5:32 PM
Qantas Airline`s executive general manager John Borghetti believes the day is coming when the carrier will have to "adjust" commissions paid to travel agents.
The once sacrosanct relationship is likely to be discussed in a strategy meeting of the airline`s executives in Sydney tomorrow, along with a proposal to relocate 400 cabin staff overseas to save costs.
The airline is focused on cost cutting to meet its three-month-old target of stripping $500 million in expenses - on top of the $1 billion it has already earmarked for the chop.
While the airline is in an aggressive growth phase, high fuel costs and an expected rise in the US dollar will place further urgency on its cost cutting regime. advertisement
advertisement
Mr Borghetti said today neither the commission paid to travel agents nor the relocation of staff had been decided upon.
But with passengers increasingly using the internet to bypass travel agents, he said commissions, which are believed to cost Qantas up to $100 million a year, were being "constantly reviewed".
"We have no plans to reduce commissions at this stage but having said that, I think it would be a very brave man or woman to suggest commissions would never be reduced in this market," he told journalists at the Australian Tourism Exchange.
"I don`t know of any airline in the world that still pays five per cent domestic commission, for example.
"I think at some point in the future we have to accept the fact that commissions will be adjusted - when that will be I can`t tell you.
"(But) as each day goes by it gets closer and closer."
Mr Borghetti said the plan, floated recently by chief executive Geoff Dixon to save $20 million by relocating 400 staff overseas, also had not been signed off on.
He said there has been much misinformation generated by unions about the proposal.
"I think the story got a bit carried away by people making comments without knowing the facts," Mr Borghetti said.
"The facts are that: No.1, it has not been approved, No.2, yes it is possible, and number No.3, if we did do it we would offer (the jobs) to Australians.
"So more than likely you would have those 400 positions filled by Australians."
Mr Borghetti said salaries were not the issue in considering relocating staff overseas, with savings made in hotel accommodation and productivity.
"Qantas has close to 60 per cent of our assets on our overseas markets yet we have 94 per cent of our 35,000 staff employed in Australia," Mr Borghetti said.
"If we did move 400 people overseas, the 400 people would not make much of a dent on that 94 per cent.
"It`s not as dark as everybody would like to think ... but it`s just one of many options."
Video News
Afternoon Market Wrap
Jim Parker wraps up Monday`s trade
AFR 04:43 p.m. May 31
AFR Multimedia Archive
Source: MELBOURNE, May 31 AAP
Published: Monday May 31 2004, 5:32 PM
Qantas Airline`s executive general manager John Borghetti believes the day is coming when the carrier will have to "adjust" commissions paid to travel agents.
The once sacrosanct relationship is likely to be discussed in a strategy meeting of the airline`s executives in Sydney tomorrow, along with a proposal to relocate 400 cabin staff overseas to save costs.
The airline is focused on cost cutting to meet its three-month-old target of stripping $500 million in expenses - on top of the $1 billion it has already earmarked for the chop.
While the airline is in an aggressive growth phase, high fuel costs and an expected rise in the US dollar will place further urgency on its cost cutting regime. advertisement
advertisement
Mr Borghetti said today neither the commission paid to travel agents nor the relocation of staff had been decided upon.
But with passengers increasingly using the internet to bypass travel agents, he said commissions, which are believed to cost Qantas up to $100 million a year, were being "constantly reviewed".
"We have no plans to reduce commissions at this stage but having said that, I think it would be a very brave man or woman to suggest commissions would never be reduced in this market," he told journalists at the Australian Tourism Exchange.
"I don`t know of any airline in the world that still pays five per cent domestic commission, for example.
"I think at some point in the future we have to accept the fact that commissions will be adjusted - when that will be I can`t tell you.
"(But) as each day goes by it gets closer and closer."
Mr Borghetti said the plan, floated recently by chief executive Geoff Dixon to save $20 million by relocating 400 staff overseas, also had not been signed off on.
He said there has been much misinformation generated by unions about the proposal.
"I think the story got a bit carried away by people making comments without knowing the facts," Mr Borghetti said.
"The facts are that: No.1, it has not been approved, No.2, yes it is possible, and number No.3, if we did do it we would offer (the jobs) to Australians.
"So more than likely you would have those 400 positions filled by Australians."
Mr Borghetti said salaries were not the issue in considering relocating staff overseas, with savings made in hotel accommodation and productivity.
"Qantas has close to 60 per cent of our assets on our overseas markets yet we have 94 per cent of our 35,000 staff employed in Australia," Mr Borghetti said.
"If we did move 400 people overseas, the 400 people would not make much of a dent on that 94 per cent.
"It`s not as dark as everybody would like to think ... but it`s just one of many options."
Video News
Afternoon Market Wrap
Jim Parker wraps up Monday`s trade
AFR 04:43 p.m. May 31
AFR Multimedia Archive
MELBOURNE (Dow Jones-VWD)--Die Qantas Airways Ltd, Mascot, gibt laut einem Zeitungsbericht den Plan auf, ihr Inlandsterminal am Flughafen Sydney für 500 Mio AUD zu verkaufen. Die Offerten hätten den Vorstellungen des Unternehmens nicht entsprochen, schreibt die "Australian Financial Review" in ihrer Freitagsausgabe. Somit stünden der Fluglinie weniger Mittel als erwartet für den geplanten Ausbau der Flotte für rund 6 Mrd AUD zur Verfügung.
Dow Jones Newswires/11/11.6.2004/mi/chr
Dow Jones Newswires/11/11.6.2004/mi/chr
Qantas: Sitzladefaktor fällt im Mai auf 69,8%
SYDNEY (Dow Jones-VWD)--Der Sitzladefaktor der Qantas Airways Ltd, Mascot, ist im Mai im Vergleich zum Vorjahresmonat um 0,3 Prozentpunkte auf 69,8% gesunken. In den 11 Monaten bis Mai sei der Sitzladefaktor dagegen im Vergleich zum Vorjahreszeitraum um 0,7 Prozentpunkte auf 78,3% geklettert, teilte die Fluggesellschaft am Dienstag mit.
Dow Jones Newswires/29.6.2004/ll/cn
Fujipyjama
SYDNEY (Dow Jones-VWD)--Der Sitzladefaktor der Qantas Airways Ltd, Mascot, ist im Mai im Vergleich zum Vorjahresmonat um 0,3 Prozentpunkte auf 69,8% gesunken. In den 11 Monaten bis Mai sei der Sitzladefaktor dagegen im Vergleich zum Vorjahreszeitraum um 0,7 Prozentpunkte auf 78,3% geklettert, teilte die Fluggesellschaft am Dienstag mit.
Dow Jones Newswires/29.6.2004/ll/cn
Fujipyjama
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Qantas kaufenswert?