PPRuNe Forums - View Single Post - Fallacy or Fact - Qantas International losses
Old 27th Jul 2011, 20:36
  #96 (permalink)  
Sunfish
 
Join Date: Aug 2004
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QAN Shareholder:

I'm assuming you're serious here and not just grandstanding but what you are looking for is implausible. For an organisation as complex as Qantas it would take a qualified accountant with full access to all documents and finance staff weeks to get to the stage where they understand how it all operates. From your posts here it is apparent that you know as much about accounting and finance as I do about fixing planes hence 'the full picture' will always remain elusive.

If you really want to understand the source of the problems with Qantas international you could request the profitability for each of the international routes for the last few years. This is fraught with danger though since I suspect it would become apparent that there are routes that haven't made a profit for years and have no prospect of making an acceptable return anytime soon hence either routes or costs need to be cut. It is far easier to remain in ignorance and keep pretending that management are evil and corrupt.

Nice try, troll.

Unfortunately you are simply wrong and/or deliberately spreading disinformation. The basic mechanics of internal cost allocations between business units that the boys are talking about here are very easy, obvious and transparent. They have every right to ask questions and the answers they requested are easy to provide, since the account coding system will tell them the answers.

This is accounting 101, not rocket science and certainly not the "metaphysics" some forms of cost allocation involve. Its straight forward business costing that is applicable to any business, not just an airline.

Where it can get highly technical is where we start talking about costs charged per man hour/ block hour/ engine hour/ cycle, and how these are constructed, however we are nowhere near that subject yet.

What the boys have already found, in my opinion, is enough smoke and sparks to suggest that there really is a fire burning in the Qantas Accounting Department.

Any competent accountant should be able to produce a simple CONTRIBUTION ANALYSIS* in less than a week that will indicate the extent of the issue, or not. Translation: It ain't "too hard" at this level, but nice try.

As i have stated multiple times before, what is lacking in Australia is the independent forensic airline accounting skills to analyse and perhaps prosecute Qantas for predatory pricing under the Trade Practices Act, even if successive governments weren't so supine as to want to try. Don't expect the big accounting firms to produce "independent" analysis either - they won't, if they ever want Qantas business again.








* Contribution analysis = Total Revenue minus total direct costs of the respective operations (fuel, pilots and CC wages), maybe notional line maintenance hourly rate, but that would be the same for both Jetstar and Qantas). This figure excludes all overheads, so this is before the bean counters get to start fiddling and massaging the numbers.
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