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Old 30th Nov 2007, 23:15
  #101 (permalink)  
Going Boeing
 
Join Date: Jun 2001
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Thumbs down J* subsidy

The only reason that J* is making money on their Japan routes is because QF mainline has a contract leasing all the freight capacity on the flights. This is guaranteed income on every flight despite the fact that few flights carry any freight. This is just a way of subsidising and keeping the paperwork look right.
Also, Qantas catering divisions were instructed on what price they would tender for the J* intl contract - well below normal commercial rates and below cost.
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