Originally Posted by
a_pilot
It is very clear that you have no idea, and that you just like to distort and exaggerate the facts to rubbish JQ as much as you can.
If you bother to read the FY18 report, you will see that JQ generated 23% revenue (which contributed to 28% of the profit for the whole QF group) with only 32% of the ASK, and not 50% as you falsely stated. Compare this to QF INTL which made less profit for the group, at only 24%, but flew 45% of the ASK. Your statement actually seems more correct for QF INTL and not JQ.
JQ also have a much better operating margin of 12.2, compared to only 9.2 for QF (DOM and INTL). QF INTL only has an operating margin of 5.8.
Isn't it better business sense to direct towards something with a better operating margin ?
I'd just observe that QF INTL provides feed to DOM, so some of that DOM contribution is a result of INTL contribution - hard to determine INTL true contribution/return without knowing how the costs are allocated - INTL has also suffered from fleet renewal lagging behind JQ and DOM so there's also the factor of increased operating costs due to that. JQ has a key role in the QF Group but so do INTL and DOM mainline - they are full service carriers so the costs will be slightly higher and the returns lower but they have brand value which flows onto JQ as part of it's traffic would come from the fact it is QF owned or perceived as such. I don't think it's as clear as it's all been portrayed. I have old Annual Reports that in the 90s were touting the lopsided contribution that INTL made to over group ROI - yet the current management painted a picture not so many years ago that INTL had not met it's cost of capital since the early 90s... were they lying or was management at the time lying... I think the 'facts' were just manipulated to serve a purpose.
Having said that, JQ, QFD and QFI all have a role to play, QF Group just needs to get the balance right so that QFI and QFD are not cannibalised by JQD/I