I found the discussion on J* Asia interesting.
Senator X asked was JQ Asia insolvent, or was JQ Asia loosing money.
Gareth Evans responded. The JQ Asia GROUP consisted of Newstar, Orangestar, Jetstar Asia and Valuair.
GE stressed that within the JQ Asia GROUP they provided an "interactive" finance. He further explained the TRUE VIABILITY was in the JQ asia GROUP and not the individual business of one entity (Jetstar Asia).
Reinforcing Newstar were profitable.
Compare this to the previous argument provided by Joyce.
Stating that its NOT about the QF GROUP performance, but the performance of individual business units.
Shouldn't they provide the same logic to the Qantas Group as the do the J* Asia group?
If you look at past history of the combined frequent flyer, QF Domestic & QF International in TOTALITY the group was profitable.
GE also stated that after the removal of the Perth -Singapore route. All international routes were generating revenue to cover the cash costs of the business of operating the routes.
Further he & Joyce explained that although the international routes were covering the cash costs, that it was not sufficient to cover the recapitalization of Qantas international.
So my question is?
Joyce previously stated he wouldn't reinvest in Qantas International until it returned to profitability.
Has it reached the point where it is now profitable? They have stated it is covering the cost of operating the routes, which is different to covering the costs of reinvesting in a new fleet.
MC.