Originally Posted by
wheels_down
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.
Sure QF has double the fleet etc. but as I said " ( in proportion of course.)
This is what puzzles me is the difference in revenue profit/ loss given the proportional size of the fleets etc.
Also Doesn't explain the unbelievable $1.6 billion QF magical turnaround in revenue / profit in 2015.