Had a interesting conversation with the Qantas CFO a few years ago.
He admitted that Qantas International had indeed shrunk as we all know.
What he did say is that it had shrunk to the smallest size it could be as it was needed to feed Frequemt Flyer, QF Domestic, and the favourite children Jetstar Domestic and the Pan Asian Jetstar’s.
The CFO made the point that if Qantas International was to be any smaller, then all the other entities were at massive risk.
Qantas would not and could not outsource the international flying any more than it had already been.
Tony Webber the ex Qantas economist said that pilot costs were 1-2% of the operation. IATA also make mention of this. Even the 30% pay cut on the 787 flying long haul makes 0.3% difference. What did any executive sacrifice to help the business case?
If the numbers are that tight then don’t buy the jets.
It was Ideology more than economics. You can get more to fly a 737 in China.
Seeing as fuel is 40% plus of the cost and that’s rising then Rated D is correct.
Qantas International has bought only 8 new aircraft.
Bonuses and Share Price are high due lack of spending on renewal,however the next poor CEO will have to do something once the CEO leaves with his $100 million in remuneration.
Moody’s and Bloomberg reported exactly the same thing.
I don’t personally believe Qantas will ever grow substantially. They will have to replace the fleet at some point as every other global airline has done.