Originally Posted by Qantas
This is a baseless claim that has never been substantiated
Jetconnect Fair Work Jetconnect transcript - Examine the Testimony of Mr Paul Daff and his lack of knowledge of its own accounting, despite being the CEO.
Alan Joyce admits Jetconnect does not pay for its own fuel.
Senator XENOPHON: But, again, Mr Joyce, I just want to get a clarification so I can understand this: in terms of aircraft operating variable cost, does that include fuel?
Mr Joyce : The operating aircraft cost we do covers fuel. We have to check it on this occasion, but it is irrelevant to the reporting of this segment, because this segment makes its reports. It is a wet lease provider and as part of the wet lease provision it provides that capacity to Qantas and the profitability of those operations are reported in the Qantas segment. The purpose of this is not like Jetstar in Asia—
...
Senator XENOPHON: But Mr Joyce said a minute ago that it does include fuel or it does not include fuel.
Mr Joyce : Aircraft operating variables, we usually report those, but we are checking on this one because it may not include fuel in Jetconnect's case.
...
Senator XENOPHON: I am just trying to sort this out—and I am not suggesting anything improper. Regarding the revenue from operating activities of NZ$73.4 million in 2011, you have manpower and staff related costs of $37 million, aircraft operating variable costs of $23.9 million and 'other' costs of $5.3 million. That is $66 million. And you had some other revenue, so it is $77 million in revenue, $66 million in expenditure and profit before related income tax expense of $11.2 million. Is fuel not included in that?
Mr Joyce : No, it is not.
Who pays for the fuel, because some entity is? Could it be Qantas International, or perhaps another entity within the business? Therefore, by Mr Joyce's own statements, is this not cost shifting between entities within the group?