Originally Posted by
ECAMACTIONSCOMPLETE
Let’s see how Rated De rebukes this one...
Assuming you asked with a genuine desire to understand how Jetstar is far from a saviour, it is worth remembering statements like Mr Evans are impossible to test. Mr Evans knows that. If Mr Evans wishes to open the company to scrutiny, invite investigation and stand behind such an assertion, then there are simple things he can do:
1
. Segment Jetstar International as a separate operating segment.
After all the parent who needed saving is reported separately from FY12. (i.e. QF International and QF domestic) Presumably he is happy to do this to show the value add?
2.
Detail precisely what rate Jetstar pays to Qantas for the A320, 787 and A321 aircraft.
Qantas retains ownership of the aircraft, ‘leasing’ them to Jetstar. It is highly probable from our figures that the rate is nowhere near a commercial rate, therefore it remains an effective subsidy which advantages Jetstar.
Inherently, Jetstar ought to meet the requirements of a reportable segment, probably ought exceed the qualitative and quantitative thresholds in AASB 8 Operating Segments. Even if they don't senior management can ‘choose’ to report a segment anyway
if they believe doing so would be of benefit to investors. Ask yourself why they do not?
Whilst discounted leases are in no way illegal, they do hide an effective subsidy, which is material to any assertion made by Mr Evans and he knows this.
The Air Transport Licensing Authority (ATLA) decision regarding Jetstar Hong Kong detailed specifically that ownership and control of the aircraft resided with Qantas, not Jetstar Hong Kong.
This was a central tenet of the rejection of the application.
When Little Napoleon ascended the throne, Jetstar had a fleet less than 40, now their fleet (with their associates) is larger than the parent. Despite this scale and flying some 48% of the ASK of the parent they cannot generate more than 30% of the revenue.
Total group revenue in the year before Little Napoleon's coronation was 12% higher in real terms than today. Qantas group, in a decade went backwards in real terms.
Let not actual facts get in the way of a good story.
Qantas need a new fleet.