This all sounds a bit strange to me.
How is it that QF can make such a good profit and VA such a huge loss when one considers that both have about the same load factors , terminal costs, fleet costs etc. etc.( in proportion of course.)
Is it some very clever accounting methods used by QF?
One should remember this;
Qantas shocks with $2.8bn full-year loss, analysts call for management spill
By business reporter
Michael Janda
Updated 28 Aug 2014, 2:56pm
RELATED STORY: As it happened: Qantas posts record $2.84 billion loss
Qantas has shocked everyone with a record $2.84 billion headline loss, around three times as bad as expected.
It is a vicious negative turn from last financial year's wafer-thin $1 million profit.
And then the very next year it s this:
Qantas’ underlying profit before tax of $975 million was
a turnaround of $1.6 billion compared with 2013/2014 – including the best second half performance in our history. I’m incredibly proud of our people, who have driven the Qantas Transformation program forward with passion, skill and determination. Without their hard work this outstanding result would not have been possible.
This massive turnaround strikes me as being a very clever bit of accounting !!
Some critics have said that VA have paid their Executives huge salaries and this makes a difference but what about the colossal salaries paid by QF to their top brass?, doesn't seem to have hurt their profit margins at all!!
There does not seems to be much logic in this huge difference between the profits/ losses between the two Airlines .
Sure there are inefficiencies in VA but surely not that much to make such a big difference.
Puzzling methinks ???
I would like to think a fair bit of this difference and VA's huge loss is a factor of Accounting to some degree.
It seems a bit like it to me.
One can only hope that VA does turn things around as I have found their product to be so much better than Qf.
It would be a shame to see VA slip back to a budget Airline and let QF have the cream of the travelling public to themselves.
We would not have the same high quality of service if there is no real competition.