PPRuNe Forums - View Single Post - Network aircraft to be crewed by JQ pilots
Old 18th Mar 2018, 06:10
  #69 (permalink)  
Rated De
 
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I agree QF need some investment in heavy metal beyond the 8 x 787’s. However capital expense of the magnitude required will drive the share price down in the interim, so it must be segregated and stagnated.

If you want to blame someone or something, look at capitalism and the share market. Business is now looking to be the new far left.
Capitalism? What passes as modern markets are not capitalist. With interest rates at 5,000 year lows and over 10 trillion Government treasury bonds negative yielding debt and risk are not priced correctly.

Thus management prefer to buy back shares rather than invest in 'new metal' when 'share price' can be juiced by leveraging the company with cheap debt. Bonus prizes as the very same management incentives hit the stratosphere...

With Qantas using nearly TWO billion of shareholder's funds to reward themselves and boost the EPS with share buy backs, that 'new metal' you talk of is nowhere to be seen.
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