Originally Posted by
Tuck Mach
[/I]Yes that is correct, Joyce did., with board approval 'pivot' to Asia.With the JQ Asia 'franchise' in its 13th year and no tangible profit, with JQ having more aircraft than QF does Where is the tangible financial upside?
Ever wonder why JQ is not De aggregated into two operating (domestic and international) segments like Qantas is?
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JQ Asia is only minority owned by the QANTAS group, as is all the other JQ "franchises". At the end of the day, they are all representing the JQ brand. Competition is tuff in Asia, yet the QF group is still making $200 million from such investments. What they are yielding is another matter entirely. Perhaps the long term game will see where it ends up, though it would be silly as, guess what, JQ Asia revenue is also climbing, albeit a lot slower rate than forecast, with manageable leveraging.
As for the whole QF Domestic and International being aggregated as opposed to JQ, one will find this is a hold over from the Australian Airlines almalgamation. And while they can use this segregation to leverage industrial and political opportunities, can you actually blame them for not combining these two parts of the business?
Interestingly though, if memory serves me correctly, JQ used to report international and domestic financials separately. Now they only report yields and RSK's as a percentage of change.