Keg you are living in a dreamworld! The only reason Qantas is making money is creative accounting and low fuel prices! The revenue at the moment is coming from mainline. Nowhere else. Cost of operation of a B789 is 17.8 cents per kilometre and the B744 is 79 cents per kilometre. Why is any planet you care to mention would you spend a cent more on Jetstar? Even the B788 should be back in mainline routes yesterday. Big mistakes have been made by this board and they are covering it up before any personnel changes can occur.
busdriver007. WTF? Yeah. I know Qantas is making money because of low fuel and I agree there's probably been some creative accounting along the way- including accelerated depreciation of assets to create a big loss.
The increased profit is also due to things like more efficient use of aeroplanes, more capacity into Asia, more focus on mainline (e.g. OOL, HMI, advertising, etc). These are things that many here on PPRUNE and Qrewroom have been talking about for years.
I'm not sure how all that accounts to 'living in dreamworld'. Qantas has been quite open about the time frame for 787s for mainline and the various hurdles. I suspect that one of AJ's KPIs is the share price. He knows that tanks if he announces a deal for 40-50 aeroplanes. Therefore he's ordering 8. Then he'll order another 8 every year for another 5 as 'market conditions continue to hold' or whatever corporate speak they choose to use to justify the decision.
The cost to operate the 787s may be the amount you quote (I wouldn't know so I'll take your numbers) but the cost to finance the jet is quite high also- and that's just the $$$ without taking into account the affect on share price, cash flow, etc. On the other hand the 744s are fully depreciated (or significantly so) and only cost the amount to operate.
I agree that big mistakes have been made. I also agree that these mistakes are being nicely hidden by a lower fuel price. However AJ et al are the only game in town. It helps to read between their lines to understand what the future may hold.
Did someone mention fuel surcharge , thieves
Is there still a surcharge? I thought they got rid of it and wrapped it all up within the ticket price?
Happy New Year all. 2016 is at least shaping up as a better year for some of us than 2015 was!