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Old 1st Dec 2007, 19:21
  #103 (permalink)  
QFinsider
 
Join Date: Jan 2005
Location: Stralya
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GB,
There are many facets of the J* business that are puzzling and the lack of transparency in the accounts only hightens my interest. I suspect the industrial aims of J* make it almost impossible to see any real numbers. I do hear persistent rumours about members of the executive not convinced about J*/J* Asia/J* Int however it appears the elephant scrotum wins the day.
Many elements of the group are paid below market rates for "services contracted" to J*. It begs the question of transfer pricing??
  • Freight
  • Catering
  • Maintenance
  • IT support
  • Flight Planning
  • Personnel transfers
  • Ground Handling
  • Fuel
  • Spares
  • Aircraft purchases
  • Simulator training
  • EP and Cabin crew training



If these transactions were disclosed, both from a taxation and accounting perspective we could more accurately gauge the contribution margin. My hunch is that it performs well below the spin eminating from the mouth of Joyce or Dixon.
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