Originally Posted by
theozguru
QF Group have a lot of B787 options. They are replacing the remaining 747's with 787's frame for frame and then the rest go to JQ for international expansion.
JQ isn't reported as two Operating Segments for a reason. Any guess why?
Qantas
management chose to report QF Domestic and QF International as two operating segments as permitted in AASB 8. At the time the narrative of 'terminal decline' was their industrial play. Showing just how 'bad' Qantas International was suited their purpose. JQ International does not make any money and likely is nowhere close to the Quantitative threshold to ever be exposed. It was after all JQ CEO Mr Buchanan who tried to tell the board JQ International was a wreck. He was promptly shown the door.
Mr Joyce has a carefully constructed hero myth, with JQ the centre piece. His ego needs it. To actually expose JQ to further scrutiny adding aircraft is not something they will allow. For an airline flying 48% of the ASK of Qantas, yet only capable of delivering 22% of the revenue, more air frames makes complete sense from an industrial perspective, but is nuts from an economic perspective.
JQ International is luckily hidden in the JQ 'group' segment, quietly being supported from Coward Street. Of course not illegal, but the less scrutiny the better