Alan Joyce: alliance with Etihad vs Emirates like

Alan Joyce: alliance with Etihad vs Emirates like "being offered a bike before a BMW"

Qantas Group CEO Alan Joyce has compared an alliance with Etihad ahead of Emirates as "being offered a bike before a BMW".

Joyce delivered the colourful zinger today at Sydney's Australia Pacific Aviation Summit, barely 24 hours after Etihad Airways CEO James Hogan stood on the same stage and outlined his own airline's ambitions for the Australian market.

As Joyce tells it, Etihad Airways proposed an alliance to Qantas almost a decade ago but "the numbers didn't stack up".

Etihad is now partner and part-owner of Qantas challenger Virgin Australia, with plans to ramp up its Australian presence in 2014 including new premium airport lounges, more flights plus Airbus A380 services to Sydney and Melbourne.

In 2010, following Etihad's approval from Australia's competition regulator to enter an alliance with Virgin, Joyce observed that  "we looked at the numbers (of an Etihad partnership) and we didn't believe it could be economic."

In today's speech Joyce re-iterated his focus on bringing Qantas' international operations back into the black, with the aim of returning to profitability in 2016 after last year's $450m loss for the overseas arm.

That's timed for the introduction of Boeing's 787-9 Dreamliner into the Qantas fleet, following this year's debut of the 787-8 with low-cost offshoot Jetstar.

Read: Qantas, Jetstar and the Boeing 787 Dreamliner: what you need to know

"The problem child always gets the maximum attention" Joyce joked of QFi, although he proudly added that Qantas is one of the few airlines in the world which flies to every continent.

Rising fuel costs remain one chink in the Red Roo's armour, however, with Joyce reporting that Qantas' fuel bill "was $4 billion last year, and we're a $16 billion business".

But you can't get everything right the first time, Joyce admitted. "My management strategy is to get it right 80% of time, admit when you get the rest wrong, fix it and learn from it".

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David Flynn
David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
 

13 comments

  • eugoose

    eugoose

    8 Aug, 2013 04:50 pm

    So if Etihad is a bike, and Emirates is a BMW...what does that make Qantas?

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  • PLATY

    PLATY

    14 Aug, 2013 06:05 pm

    A pennyfarthing - all the show of a big wheel, surveying the world from way on high, but highly inefficient, unstable and destined for quirky antique status!

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  • abudhabi1

    abudhabi1

    25 Mar, 2014 02:33 pm

    To answer that a Holden Caprice or a Public Tranport Bus LOL.

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  • kim

    kim

    8 Aug, 2013 05:10 pm

    a skate board

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  • TheRealBabushka

    TheRealBabushka

    8 Aug, 2013 05:24 pm

    LOL! Good one kim!

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  • Mal

    Mal

    8 Aug, 2013 05:40 pm

    I honestly think that comment is a cheap shot that's unworthy of Alan Joyce or any CEO of a major airline. No matter what you think of Joyce or Qantas, I might expect to hear this kind of 'trash talk' from RyanAir. I know Joyce is actuallty taking a swipe at Virgin via Etihad, and he is probably thinking Emirates' Tim Clark will be grinning too, but the "bike instead of a BMW" line is just cheap and makes Joyce and by extension Qantas look unprofessional.

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  • Charles

    SteveCF

    8 Aug, 2013 07:51 pm

    I agree with you there, it was a cheap shot that doesn't look good from QANTAS as that hasn't been there style in the past.

    That sort of talk usually motivates your competitor more than anything, so bad move in my opinion.

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  • Warren Davis

    Warren Davis

    8 Aug, 2013 07:43 pm

    Another reason why Alan Joyce is a tool, his comment is about the same level as his skill for industrial relations and staff morale.

    I avoid flying Qantas wherever possible now (previously they had 100% of my travel)  and gladly give my business to business to the Virgin (Group) and their partners...ie those that value clients 

     

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  • Mont80

    Mont80

    8 Aug, 2013 11:38 pm

    He who laughs last laughs loudest!!!.......

    Alan Joyce should think before he opens his mouth. VA has manged to establish a 'virtual' network without the significant overheads that their international competitor have to suffer as a result of thier commitment to a significant fleet ownerhirship. I think it very unlikley Q will be be back in the black in a little under 2 years.....

    Watch this space Qantas...

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  • moa999

    moa999

    9 Aug, 2013 09:25 am

    A virtual network that means VA flies nowhere, and adhoc loungearrangements... as well as codeshare fares that are way more expensive than booking direct with the real carrier.

    Anyhow appearas QF is shrinking back to almost a virtual intl carrier.

    But to be honest with high labour charges, expensive airports where you need to base your fleets, and poor depreciation policies, who would want to operate an Australian international airline.

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  • TheRealBabushka

    TheRealBabushka

    9 Aug, 2013 08:09 am

    Has anyone ever considered this faux rivalry between Qantas and Virgin is just a show for the public and the ACCC?

    They both need each other to justify their strategy and existence. We get taken for a ride unless we actively pursue options that challenges their duopoly.

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  • Southland

    Southland

    12 Aug, 2013 10:39 am

    Dont BMW make bikes. I hear thery are really good at the Dakha Rally and go well in the desert.

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  • PLATY

    PLATY

    13 Aug, 2013 07:53 pm

    Sounds like Joyce is full of it (as usual). For starters where was he a decade ago. Just joined Jetstar? And how can the economics of 10 years ago be relevant to the current context? QF actually had an international airline back then, Etihad had yet to experience its growth phase, etc.

    What a dumb and derogratory and ridiculous comment.

    Glad I was out of the environs of the SYD Four Seasons before the dopey one made his appearance and onto the delights of a weekend of quick fire travel of Emirates A380 first (impeccable), Air New Zealand business 777-300 (excellent) and a domestic VA (great value).

    Cue the usual pro-Qantas personal attacks...

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26 May, 2019 07:25 am

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