webfact Posted January 11, 2014 Share Posted January 11, 2014 Moody's downgrades Qantas to 'junk'Australian carrier Qantas said it was facing some of its toughest-ever challenges as Moody's downgraded its credit rating to junk, with the airline battling intense competition and spiralling costs.Moody's cited "a sharp deterioration in the company's core domestic business" following the airline's shock profit warning and announcement of job cuts in December.This had already prompted Standard and Poor's to assign it junk status.Qantas is now rated Ba2 by Moody's and BB+ by Standard and Poor's, meaning it is considered a "junk" product by professional investors.It will increase the cost of financing for the carrier and restrict access for investors that do not put their money in lower-rated companies, deepening woes for the cash-strapped airline.The downgrades follow a dire forecast in December of a half-year loss of up to $300m and the decision to cut 1,000 jobs due to "immense" cost pressures.Qantas chief financial officer Gareth Evans said the news was not unexpected and underscored the difficulties faced by the company, which include record fuel costs and fierce competition from domestic rival Virgin Australia."Earnings conditions have deteriorated rapidly in recent months and we now face some of the most challenging circumstances in our history, including an uneven playing field in Australian aviation," Evans said in a statement to the Australian stock exchange."We continue to talk to the Australian government about options for resolving this situation," he added.Full story: http://www.eturbonews.com/41599/moodys-downgrades-qantas-junk-- eTN 2014-01-11 Link to comment Share on other sites More sharing options...
Popular Post jackr Posted January 11, 2014 Popular Post Share Posted January 11, 2014 That would be a most apt moniker for the Aussie national carrier. Awful service from a flag carrier, almost on par with AA. 5 Link to comment Share on other sites More sharing options...
Popular Post Gsxrnz Posted January 11, 2014 Popular Post Share Posted January 11, 2014 Time to buy now before the Aussie government bails them out and the share price skyrockets. Air New Zealand did the same thing about 20 years ago - got me a free house out of that fiasco. 4 Link to comment Share on other sites More sharing options...
Popular Post age4short Posted January 11, 2014 Popular Post Share Posted January 11, 2014 Used to be an excellent airline 20 yrs ago, now I avoid at all costs, rather pay more money on another carrier 3 Link to comment Share on other sites More sharing options...
Popular Post JoeThePoster Posted January 11, 2014 Popular Post Share Posted January 11, 2014 Perhaps Thai Airways can buy them out. 4 Link to comment Share on other sites More sharing options...
Popular Post chooka Posted January 11, 2014 Popular Post Share Posted January 11, 2014 One of the most expensive airlines in the world with the worst service and the rudest and most arrogant old trolley dollies. Thai airways if far better airline. 10 Link to comment Share on other sites More sharing options...
Popular Post Jay Sata Posted January 11, 2014 Popular Post Share Posted January 11, 2014 Rubbish airline with bad service and terrible cabin crew. The same as Thai and KLM. Avoid at all costs 3 Link to comment Share on other sites More sharing options...
Patje Posted January 11, 2014 Share Posted January 11, 2014 Rubbish airline with bad service and terrible cabin crew. The same as Thai and KLM. Avoid at all costs Yep, ever tried Aeroflot ? 1 Link to comment Share on other sites More sharing options...
Prbkk Posted January 11, 2014 Share Posted January 11, 2014 Rubbish airline with bad service and terrible cabin crew. The same as Thai and KLM. Avoid at all costs Yep, ever tried Aeroflot ? Even Aeroflot offers something better than a toasted sandwich in J on a 9 hour flight..... Link to comment Share on other sites More sharing options...
masuk Posted January 11, 2014 Share Posted January 11, 2014 I'd use QANTAS any day in preference to Garuda. Rated Garuda as 'worst meal' when I was given a warm Coke and a cold doughnut for my flight from Bali to Jakarta. Equal last was KLM, who issued newly boarded passengers on a flight from Singapore to Jakarta with a cheese sandwich. I was doubly p...d off as I'd purposely skipped dinner to have a repeat fantastic meal from JKT to SIN a few days earlier. I've been using AA the past three years, as I can afford to use them on my pension. Other airlines I'm afraid can't match their prices. Yes, I pay for every extra, but it's a saver. Link to comment Share on other sites More sharing options...
chrisrazz Posted January 11, 2014 Share Posted January 11, 2014 I'm not surprised at all. A couple of years back I was late for work by 5 days due to the management unilaterally shutting the airline down. Not only that, after years of loyalty on my behalf they changed the loyalty program, first by devaluing the points earned system, then later wiping off any points if you didn't fly with them or their affiliates within a certain period. Simply, they will not get any of my money ever again. There are cheaper and better airlines. 1 Link to comment Share on other sites More sharing options...
Trentham Posted January 11, 2014 Share Posted January 11, 2014 WELL !! So far I agree with everybody. Link to comment Share on other sites More sharing options...
jacko45k Posted January 11, 2014 Share Posted January 11, 2014 Moody Qantas customers did years ago! 1 Link to comment Share on other sites More sharing options...
Ulic Posted January 11, 2014 Share Posted January 11, 2014 No surprises here. Link to comment Share on other sites More sharing options...
weegee Posted January 11, 2014 Share Posted January 11, 2014 What do you expect from an airline that uses "Old bags and drags" to serve you....... 2 Link to comment Share on other sites More sharing options...
bushman1666 Posted January 11, 2014 Share Posted January 11, 2014 Perhaps Thai Airways can buy them out. Blind leading the blind (No offense intended to blind people) 1 Link to comment Share on other sites More sharing options...
Radar501 Posted January 11, 2014 Share Posted January 11, 2014 (edited) Mixed fortunes for The Flying Kangaroo. This week, AirlineRatings.com rated Qantas as the safest airline in the world. "Top of the list is Qantas which has a fatality free record in the jet era (since 1951)." Full story here: http://www.airlineratings.com/news/201/qantas-the-safest-airline Qantas can also boast that it has never had one of its jet aircraft destroyed in a crash. In September 1999, a QF 747-400 skidded off the runway at BKK Airport in a storm and fortunately came to rest on a sandy golf course. My understanding is the damage was in excess of AUD $100 million and should have resulted in a hull write-off, but Qantas insisted on repairing the aircraft to keep its record intact. Although Qantas has a fine safety reputation and a proud pioneering record, only time will tell if the carrier, in its present form, can survive in the medium term. Maybe the vultures are already circling. Just being a famous iconic aviation brand for well over half a century doesn't necessarily guarantee survival. Think Pan Am, Swissair, Ansett. Edited January 11, 2014 by Radar501 Link to comment Share on other sites More sharing options...
Popular Post thhMan Posted January 11, 2014 Popular Post Share Posted January 11, 2014 I miss TAA I wont be missing Qantas though 3 Link to comment Share on other sites More sharing options...
Benmart Posted January 11, 2014 Share Posted January 11, 2014 Time to buy now before the Aussie government bails them out and the share price skyrockets. Air New Zealand did the same thing about 20 years ago - got me a free house out of that fiasco. Congratulations on your "free house". However, someone must have paid for it in one fashion or another. Link to comment Share on other sites More sharing options...
ronrat Posted January 11, 2014 Share Posted January 11, 2014 They force people onto to Jetstar and closed a number of routes. Now they have ditched Singapore in favour of Dubai. Som nom nar 1 Link to comment Share on other sites More sharing options...
ozyjon Posted January 11, 2014 Share Posted January 11, 2014 Another airline goes under in Australia,, could this be the headlines in the papers in the near future, Tiger, Anset, they are gone, anyone miss them? Link to comment Share on other sites More sharing options...
Scott Posted January 11, 2014 Share Posted January 11, 2014 A homophobic remark has been removed. Link to comment Share on other sites More sharing options...
Konini Posted January 11, 2014 Share Posted January 11, 2014 Used to be an excellent airline 20 yrs ago, now I avoid at all costs, rather pay more money on another carrier Except you wouldn't - pay more that is! I agree that 20 years ago they were fantastic, but as the standards dropped the fares rose. And rose. Even if they were up to standard, I wouldn't pay more to fly them as other very good airlines. The fees and surcharges are at the ridiculous level and have been for a long time now. Link to comment Share on other sites More sharing options...
Popular Post marcusd Posted January 11, 2014 Popular Post Share Posted January 11, 2014 Junk?. Ever since Alan Joyce took over its been junk. Such a shame from an airline that once SET standards Sent from my RM-892_apac_laos_thailand_219 using Tapatalk 4 Link to comment Share on other sites More sharing options...
marcusd Posted January 11, 2014 Share Posted January 11, 2014 Time to buy now before the Aussie government bails them out and the share price skyrockets. Air New Zealand did the same thing about 20 years ago - got me a free house out of that fiasco. I think the government in now will let them fail Sent from my RM-892_apac_laos_thailand_219 using Tapatalk Link to comment Share on other sites More sharing options...
jaiyen Posted January 11, 2014 Share Posted January 11, 2014 Qantas has always tried to screw every other competitive airline that flew in Australia. They tried it with Richard Branson for many years and I remember him saying that it was his goal to eliminate Qantas. It seems his dream is getting closer but we will be well <deleted>**ed if Virgin ever rule the Aussie skies. 2 Link to comment Share on other sites More sharing options...
Scott Posted January 11, 2014 Share Posted January 11, 2014 An inflammatory post has been removed. Link to comment Share on other sites More sharing options...
sam sen Posted January 11, 2014 Share Posted January 11, 2014 Mixed fortunes for The Flying Kangaroo. This week, AirlineRatings.com rated Qantas as the safest airline in the world. "Top of the list is Qantas which has a fatality free record in the jet era (since 1951)." Full story here: http://www.airlineratings.com/news/201/qantas-the-safest-airline Qantas can also boast that it has never had one of its jet aircraft destroyed in a crash. In September 1999, a QF 747-400 skidded off the runway at BKK Airport in a storm and fortunately came to rest on a sandy golf course. My understanding is the damage was in excess of AUD $100 million and should have resulted in a hull write-off, but Qantas insisted on repairing the aircraft to keep its record intact. Although Qantas has a fine safety reputation and a proud pioneering record, only time will tell if the carrier, in its present form, can survive in the medium term. Maybe the vultures are already circling. Just being a famous iconic aviation brand for well over half a century doesn't necessarily guarantee survival. Think Pan Am, Swissair, Ansett. i know an engineer who works for them, they've always repaired aircraft to keep the safety record - doesnt seem to be doing them much good at the moment Link to comment Share on other sites More sharing options...
GAZZPA Posted January 11, 2014 Share Posted January 11, 2014 Qantas has always tried to screw every other competitive airline that flew in Australia. They tried it with Richard Branson for many years and I remember him saying that it was his goal to eliminate Qantas. It seems his dream is getting closer but we will be well <deleted>**ed if Virgin ever rule the Aussie skies. Why would it matter if Virgin or any other airline rule the Aussie skies if Qantas goes pop? Link to comment Share on other sites More sharing options...
RaoulDuke Posted January 11, 2014 Share Posted January 11, 2014 (edited) I'd use QANTAS any day in preference to Garuda. Rated Garuda as 'worst meal' when I was given a warm Coke and a cold doughnut for my flight from Bali to Jakarta. Equal last was KLM, who issued newly boarded passengers on a flight from Singapore to Jakarta with a cheese sandwich. I was doubly p...d off as I'd purposely skipped dinner to have a repeat fantastic meal from JKT to SIN a few days earlier. I've been using AA the past three years, as I can afford to use them on my pension. Other airlines I'm afraid can't match their prices. Yes, I pay for every extra, but it's a saver. There is not a single airline in the United States that will give you anything nearly as luxurious as a cheese sandwich on a 5-6 hour flight from New York to Los Angeles. The best you can hope for is a bag of chips, and I only know of one airline that does that. Some will even charge you for the Coke. I wish we could get a cheese sandwich or a donut. I would take Qantas or KLM over any North American airline any day of the week, and gladly pay a hefty surcharge for the privilege. Last year, I flew both Virgin Australia and Qantas on domestic flights in Australia, Qantas was infinitely better in every possible way compared to Virgin, which is a bare-bones economy airline. At least Virgin America has nice interiors and inflight entertainment to offer. Virgin AU offers nothing but a seat. Edited January 11, 2014 by RaoulDuke Link to comment Share on other sites More sharing options...
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