QAN,
Re Cost of Capital, a study of the period 1992-1996 (when the Cost of Debt was much higher) found the cost of capital to be 8-9%. Also,
this recent study from 2008 calculated Continental's cost of capital to be 6.82%.
But let's suppose you are right and it is 10.5%. That means that the Qantas Group hasn't returned its cost of capital once in the last 10 years. Why are we only hearing about it now?
Also, none of our competitors seem to be returning cost of capital either.
CX : have exceeded 10.5% in 3 out the last 10 years
SQ : couldn't find historical figures, but last year - 5.4%
Those LCC geniuses at Air Asia X : 7.2%
Maybe we just shouldn't have airlines?
Neither of us know what is in the $200m figure and not much point in speculating
As a shareholder I would have expected you to be demanding a clear and transparent breakdown of this loss, particularly when it is being used to justify significant and radical changes to the company.
Borghetti seems to think he can create a successful FF program without having any significant international network which suggests they should be considered independent
Ok, how profitable do you think FF would have been if there was no QF Intl?
Apart from this, the other points I raised don't concern you?
Anyway, off to work for a few days, happy to continue when I get back.
PS. Skyscanner, Emirates loads - 66% was from the DOIT International Airline Activity 2010 report, pg 24. Were you looking at one of the monthly reports?