I was told the reason why no more 787’s were coming in the near term was because of FIRS16 accounting rules and Qantas is busy paying out all of Jetstar’s financial alchemy inspired leasing arrangements in order to be compliant prior to next financial year . Only so much cash flow available apparently ?
Should be interesting to see how different sections of the group are portrayed as the financials transition from GFR to FIRS Standards.
The standard to which you refer is IFRS16.
Operating leases previously have given a dubious benefit of implied ownership on balance sheet, without the corresponding liability of the capitalised lease amount or indeed debt. The change to the standard requires the 'asset' to be 'balanced' against the debt supporting it. Further there is a requirement that the asset be reported where the benefit accrues. This is a big concern for Low Far Airlines like Jetstar. Qantas has in the past been reasonably consistent with the capitalisation of leases, the activity reported by other posters suggestive of a change in policy. ( A change ruled out under the rule change)
Further it would appear that the company is now
beavering to establish the narrative and extend the grasp of the skilled shortage 457 Visa potential. The 'stream leader' and the cohort will be active in their pursuits to preserve the Qantas labour unit cost.
Qantas management will thus likely
consider all kabuki theatre necessary to demonstrate the 'severity of the shortage' The shortage can be solved, for all markets clear at a price. Qantas will do everything to not increase remuneration.
- Pushing Q400 against the fence provides a nice optic.
- Regional flight cancellations allow the company to use their implied public service obligations to access elements of Essential Services Act 1988 No 41 Part 4 (Preliminary)
One would need to have a special class of nearsightedness to not see where this is going, either that or a nefarious motivation.