Thanks for the insight moa999.
Any analyst/ investor worth their salt in airlines always effectively brought leases back on balance sheet anyway. (same with the big retailers who often have long term leases)
Qantas uses selective metrics to weave fanciful tales of JQ..Nothing wrong of course with Qantas buying the aircraft and leasing to JQ The interesting quesiton is what JQ pay for the leases..Again Qantas can do what it likes, however to use it industrially (if the leases as mate's rates) is disingenuous. .No depreciation helps a lot carry the narrative when the depreciation sits almost entirely in the Qantas segment; an important distinction when comparing use and control of assets.
The stunning 'transformation turn around' consisted of when I read the P and L:
- Fuel down $597 million (due lower fuel prices)
- Depreciation down $326 million (bought about by fleet impairment the previous FY)
- A few sundry items
There is the stunning turn around 'profit', anything i missed moa999?