Originally Posted by
bazza stub
Are the QF profit figures inclusive of the numerous domestic sub-operations who wear the red and white and who contribute to the overall QF revenue?
An interesting question.
Effectively yes, with certain caveats.
That is under AASB 127 whereby control is presumed to exist where certain conditions are met.
Something like Cobham, where a contractor in which QF does not have a controlling interest (although owns the aircraft-assuming there is lease charges) ought not be included in a consolidated segment. As stated a few caveats exist.
Allegedly, so the story goes , when the smartest guys in the room created the Terminal decline myth in order to destroy the share price (only genius’ could achieve that with high load factors ,apparently !)
Then locking in future performance bonus’ at the created depressed price , they got a bit nervous about a potential hostile takeover due to the now favourable price / equity ratio for such an attempt.
Apparently there was a group , the same old suspects , Dixon,Gregg, Carniege , Singo et al ,alledgedly trying to borrow Dubai money to finance a hostile takeover.
Some months after this group started circling , old Clark from Qantas’ mates ? at Emirates came a calling with a summons for the Wee One to meet at their Hidden Valley resort , in the Blue Mountains.
From that meeting Qantas ended up with the Emirates /Qantas overlord alliance ?
Low and behold the hostile takeover group faded away .
Yes blown.
The terminal decline narrative emerged from nowhere. It required at the core a controlling shareholder, in effect somebody with a substantial enough shareholding to block hostile activity, control the foreign ownership restrictions, but be closely aligned with management.
Taking the share price south was risky. Is it any wonder that the interests referred to above are no longer substantial interests?
Little Napoleon's options were rather 'amazingly' issued right at the low water mark.
Interestingly in confronting the 'biggest loss in Qantas' history, he (Little Napoleon) with conviction in his voice, incredibly predicted that the
very next year, Qantas would be profitable...Incredibly it was. What dates did those very cheap options vest?
Amazing set of coincidences isn't it?