Originally Posted by
TimmyTee
But wouldn’t a lot of that “management” to get through the past 18 months come from the government subsidies to both airlines, and their employees? If they dried up this next FY, it could potentially be a different outcome. How would have they gone without that assistance? Sort of like REX claiming a profit, with almost the entirety of that profit coming from a Gov handout.
Qantas picked up $588 million in JobKeeper for the year and probably around $30 million from the International Aviation Support program. All of that comes in on the Revenue line and straight back out on the Manpower expense line; it's essentially a pass through.
They benefited about $97 million from the Australian Airline Financial Relief package (the Government foregoing fees and charges). Qantas probably got $70 million in benefits from the Tourism Aviation Network Support Program last FY and $35 million from the Regional Airline Network Support Program. Call it $200 million in grants, although both TANS and RANS require services to be flown so neither are straight out "gifts".
On top of that there was some $200 million from the various iterations of the Domestic Aviation Network Support Program. Again, DANS required services to be flown so that while $200 million went to the Revenue line, there would have been costs associated with the provision of those services.
There was also some $200 million paid for freight flights under the Domestic International Freight Assistance Mechanism and around $1.2 million for repatriation flights; again there would have been costs associated with the provision of those services.
So, leaving aside JobKeeper and IAS, you could say that some $500 million of Qantas's $5.9 billion in revenue came from government programs and they shaved nearly $100 million from their $7.9 billion expenses line thanks to AAFR. In the total absence of any government support they would likely still be able to manage their way through another year like the last one given their current net debt and liquidity position.