After the week that was, it is prudent to circle back and consider where we are as a 'Respected Profession' in the greater
Scheme-of-Things (Pun Intended)
Let's first consider the QF Group's 0-0-3-3% Wages Policy and the impact it has already had on the entire pilot body as a whole, but with specific reference to the poor souls as referenced by AFAP below.
AFAP Update for Qantas Group Pilots
Sunstate and Eastern Pilot Councils
...junior FOs receiving less remuneration than they would receive under the safety-net Award.
Network Aviation
In 2022, approximately 62 pilots were paid below the minimum Award equivalent, with the majority experiencing a shortfall of around $7,200. This number increases every year a new enterprise agreement is delayed.
Express Freighters Australia
As time went on more and more EFA pilots started to receive less remuneration than they would be entitled to under the Award.
In contrast to the above, here are some real beaut's extracted from the
Qantas Group FY23 Appendix 4E and Preliminary Final Report as well as the
Qantas Group FY23 Investor Presentation.
Fact #1
Contrary to popular belief, Qantas did
not buy back $400 Million in shares as was initially reported:
Qantas shares soar on surprise buyback as demand returns - 25 August 2022
Is the $400m buyback a good thing for Qantas shares? - 29 August 2022
‘Reckless’: Analyst slams Qantas buyback - 7 September 2022
In fact, during FY23 the Qantas Group bought back
$1 Billion (yes $1 000 Million) of its own shares with another $500 Million planned for 1H24.
Qantas Group FY23 Appendix 4E and Preliminary Final Report
During the year, the Group completed $1 billion of share buy-backs at an average price of $6.19 per share. With all pillars of the Group’s Financial Framework met, the Board resolved to distribute further surplus capital to shareholders, announcing a further on-market share buy- back of up to $500 million.
Fact #2
Net Debt was reduced to be significantly below the Net Debt Target Range to the extend of ▲21.9% or ▲37.2% depending on whether you measure against to upper or lower band of the Net Debt Target Range.
Qantas Group FY23 Investor Presentation
Balance Sheet Strength: Net Debt at $2.89 Billion, materially below the Net Debt Target Range of $3.7 Billion to $4.6 Billion with Net Debt/EBITDA of 0.6x
Fact #3
FY23 Domestic Operating Margin is 42.2% higher than FY19 (pre-COVID) while FY23 International Operating Margin is 165.9% higher than FY19 (pre-COVID).
Qantas Group FY23 Appendix 4E and Preliminary Final Report
Qantas Domestic Operating Margin: FY23 18.2% versus FY19 12.8%
Qantas International Operating Margin: FY23 11.7% versus FY19 4.4%
Fact #4
Qantas Group FY23 Investor Presentation
Top quartile TSR performance across ASX100 and ranked 1st amongst global listed airline peer group through post-COVID recovery FY21-FY23
Fact #5
Qantas Group FY23 Investor Presentation
$340 Millionof benefits in recovery boost payments and RRP shares across 21 100 employees plus > $20 Million in staff travel credits.
Benefits based on 30 June 2023 closing share price of $6.20
Considering that at best,
every employee received the fabled $5 000 bonus plus 1 000 Shares at $6.20 per share = $11 200 per employee.
$340 Million divided by 21 100 employees = $16 113.74 per employee
Where did the ▲$4 913.74
per employee go...?
Similarly, considering that every employee received the $500 Staff Travel Credit:
$20 Million divided by 21 100 employees = $947.87 per employee
Where did the ▲$447.87
per employee go...?
So what is the purpose of this all - Well, while the CEO and others were able to defer their Share Bonus allocations until the company turned a profit, the individuals in a so-called 'Respected Profession' were left with no choice but to accept a 0-0-3-3% Wages Policy that will amortise these wage losses over the length of their careers, as well as those that follow in their footsteps via future EBA's.
Not a good look for a company that received record taxpayer support, made record profits and distributed record bonuses to but a select few
