I dont know if we could really compare the qantas result
to the virgin Howard.
I am neither Q nor Dj (and I hope both do well for everyone working at both) but from an outsider who views many trading companies I would have to say this is a very good result under the current ecconomic conditions.
Virgin isnt/hasnt pretended to be the size of qantas at any stage.
For a company that didnt EXIST 4 years ago, Now has 50 odd aircraft, 4000 odd employees, 34% of the australian domestic market, has made a $62 million dollar profit in the first six months and is on coarse to reach the $140 odd million doallar forecast it said by the end of the year (X-mas rush to come), it isn't bad.
There are not many companies in the world in any industry that have grown 400% in three years and stayed in the black.
Also lets not forget Qantas too operate on a much higher knife edge. As an investor I am much more worried about how Q results will fare if the open skies agreements really do open up.
I.E If singapore start running to LA which Q have a virtual monopoly on and make much of there profit as well Vigin Atlantic and others start getting more rights through to OZ from the UK and other europe ports.
As long as DJ look at each route and continue to make decisions based on route profits I think they should be find.
Especially now they are clearing out the dead wood management. I am sure Corrigan is only biting time until Godfrey is sailing into the sunset.
Well done to the guys and girls there. I hope you continue to prosper
