My guess is that Qf has no money for 787's (the completely different 'Gamechanging' ones to JQ's of course). That makes it A320's OR 787's. And even Alan can't seem to screw up the domestic quasi monopoly - despite his best efforts. Qf debt is 70-75% ADDITIONALLY, I understand they are buying JQ leases to get them on the books by the deadline so I think they are looking for scapegoats to avoid the difficult questions. IE: $2b on JQ and +/-$2b on share buybacks, but no money for desperately needed aircraft for the company that pays the bills. Nor any concern for it's longevity.
To explain the DE ratio to those that don't know, look at it like this. When you buy a house, generally considered 'safe as houses' you HAVE to have at least a 20% deposit. Businesses are FAR more risky than residential houses so have to have a lot more equity than a simple house. At 70-75% Debt to Equity, Qantas is starting to push limits. If Qantas had 50 Gamechangers or 50 777's (or both!) then I'd say that possibly makes sense. But it doesn't and that's where I see MAJOR issues. Alan might be able to keep the music playing, but it is looking like a house of cards to me.
For the people who think this is simply an anti JQ rant/attack, please provide some information to the contrary. Look at it this way, I don't mind making a fool of myself on here, but I do speak to people about what I see as a rolling disaster and when I do, I do NOT want to be easily written off.
Comments like 'business case' don't count because if there is no money there clearly is no business case. Too broad an approach.
Comments like 'performing strongly' don't count because that is likewise meaningless for (almost) the same 'Eddie the Eagle' reason.
Last edited by V-Jet; 27th Feb 2018 at 22:24.