This guy is basically narrating the Qantas press releases and alan joyces speeches in his own annoying voice. He's not a journalist, there's nothing journalistic about what he is saying. In fact thats exactly what is wrong with journalism today, the fact that they are just repeaters of the official
PR spin that comes from all companies.
If he actually researched what he planned on saying, he'd see that Jetstar has lost money big time in Singapore, lost money in vietnam (which caused 2 qantas executives to be prevented from leaving the country and that operation in vietnam is currently milking qantas for more cash at the moment), jetconnect and jetstar have lost money in new zealand.
In fact the 2010 annual report says, in relation to NZ and SIN ops
UNRECOGNISED DEFERRED TAX ASSETS
Deferred tax assets have not been recognised with respect to the following items because it is not probable that future taxable profit will be available
against which the Qantas Group can utilise these benefits:
to the tune of $15million for NZ and $25million for Singapore.
Also as per the 2010 annaul report, to say that Qantas doesn't enjoy lucrative tax breaks in Australia would be an understatement.
Due to their excellent accontants and Australia's convoluted taxation system
-in 2009 Qantas was able to keep $1149million CASH and
-in 2010 Qantas was able to keep $1307million CASH
from their EBITDAR whilst paying $62million TAX.
To say Qantas needs to go offshore to survive, they already are offshore. Most of Jetstar's maintenance is offshore. Their aircraft are offshore. Their flight attendants are offshore. Jitconnect is offshore. Qantas's long haul has numerous offshore flight attendant bases. Jetstar pilots are offshore in NZ and Singapore. Qantas is sending a380 reconfigs off shore when the workforce in AVV is capable. A380 maintenance is offshore. Spare part supply is offshore.
Another interesting tidbit is where Qantas derives its revenue from. The figures have been removed from the 2010 annual report for some reason but they're in the 2009 report.
Australia $9760million
UK/Europe $1102million
Japan $384million
SE/NE Asia $668million
Americas/Pacific $948million
New Zealand $329million
Others $358million.
Segment Revenue
Qantas $10784million <-100%UK/Europe, 25% Japan, 90% Americas/pacific, 25% SE/NE Asia, remaining Australia
Jetstar $1646million <-75% Japan, 50% NZ, 75% SE/NE Asia remaining Australia as a total guess
Now I dare say, if the company is deriving a VAST majority of its income in Australia, where it was founded, its based (for now), its charging Australia prices (ie very high) to Australian passengers, it would hardly be considered very Australian to want to offshore most things.
The want to have their cake and to eat it too, to pay 3rd world rates of labour which is the main issue these days whilst still charging the full 1st world fares in possibly one of the most expensive air travel regions in the world really says something. Nevermind the fact that Australia is still a cosy duopoly with guaranteed income, there is NO threat at all to virgin and qantas from anyone. The corporate world these days which rewards complete total disregard for morals at the pursuit of the dollar is a very sad world to be involved in..
I know its cliched but if this is the plan, does the executive committee and the board have 3rd world rates of pay in store for them, or do you need to pay $12million for a CEO to attract the best, like old mate GD?
Now a critical thinking journalist is something I'd like to see. Currently in aviation we have, Ben Sandilands........ and thats it. The rest are
PR repeaters.