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 ???
There is a big difference. Qantas ‘Group’ has double the aircraft as Virgin. Revenue is times 4. As is passengers. They have a loco as big as Virgin domestic itself. There is a half a billion dollar frequent flyer program. Has long term business contracts signed. Will always have the corporate edge due to International network.
The Virgin Domestic fleet has an EBITA of $400-$500m, these numbers are evident back in the early Virgin Blue days, which in return didn’t have all the extra baggage and reported global record profit margins. This is then eroded away to nothing by VA International, Tiger ongoing writedowns and poor fuel management.
A lot of cash on the domestic front once they wipe away the cost base.