Originally Posted by
mulisector
By that logic ... Tiger has a zero profit margin ... Jetstar has a significantly positive one .. so JQ pilots should be paid more than Tiger?
also ROI (return on investment) is the highest at JQ of any of QF groups, so for every dollar QF board invests in this Business unit, it returns them back the MOST profit.
There’s clearly room to close the Pay gap.
Given the complete opaqueness afforded Fort Fumble under the lax accounting standards it is almost impossible to quantify exclamations made by over zealous management about JQ and its alleged performance.
That the Jetstar business lacks any yield premium ought concern management, for a footprint (fleet and ASK size) it lacks any ability to deliver a substantial yield premium; It simply cannot generate revenue.
Thus, as T-Vasis says reliance on mother Qantas for capital equipment, beneficial leases and the like keeps the "Cost base" low.
A layman would call that subsidisation, but in accounting terms subjective allocations of cost will prejudice one segment in favour of another.