Originally Posted by
busdriver007
It appears that Qantas have just enough cash to keep buying shares until just after June 30. I wonder why? Nothing to do with Bonuses that are based on the June 30 share price. So what happens after that? Code Share all flying? What will happen to the share price when the fuel price goes up 30%? I suspect there will be no floor. As one Manager said "Can someone tell me what has been transformed?" he lost his job within a year! Can't wait for the Royal Commission but that will be after the event. Speaking of Consultants Alan doesn't go to the toilet without a Consultant!
In FY15 the 'transformation year' fuel price falls saved Qantas $597 million.
The other component of the 'transformation' was the long overdue fleet write off in FY14 (CGU -International fleet) reduced depreciation in FY15 by $326 million.
A few odds and ends is the balance of the 'transformation' profit. The writing and vesting dates of the millions of executive options was curious..A regulator would in fact be interested in this. The previous occupant of ASIC and indeed the incumbent more of the empty suit variety.
Only an extremely poor executive management would beleive that they engineered a transformation, when in actuality they got lucky. One day luck runs out.
Qantas need a new fleet.