beware the CEO/Board crying poor
agree -but this thread is really about the bigger picture.
- tracking pax movements (all airlines int & domestic) shows an aggregate increase, as does the number of operators and routes flown.
However..... overlaying yeilds, the economic logic goes south with an average 60% reduction (12 month mvt in std J & Y). To summarise, more poeple are flying with more operators to more places but are generating far less profit.
The reality of this is that the effects of rising oil prices ( although let's not all cry as a few hedged profitably) and the GFC have been accelerated by the opening up of the market, to (sometimes very undercapitalised) entities. These entities include those who are/were reliant on various concessions from State & Fed govts as well as so called "start up" dispensations and exemptions or the 'panama flag' of a foreign AOC.
These players, together with the established operators also have sought to take advantage of the adverse economic conditions to disproportionately drive down working T&C's.
For all pilots, CC and anyone working in aviation, the challenge is to sensibly provide an IR partnership that seeks to generate profits by doing other than just slashing pay & conditions as a knee jerk reaction to today's all ords index (or to preserve a CEO's bonus.)
At the same time we all need to seek greater accountability from government in relation to granting further access to Australian markets and in the granting of dispensations and exemptions.
Equally, airlines have to be placed under more scrutiny in relation to 'stat building stunts' like $39 fares.
QF's NAV & capitalisation shows that red rat tails will be perenials at the gates, albeit with a few more orange stars in between.
Reporting season ahead.