Aunty Roo and Jetstar

[Legal_Counsel]

Now analysts would agree there is something fishy going on in the reporting of financial data when Aunty Roo tells the world its sibling has a comparitively low cost per available seat kilometre to its competitor, but then fails to disclose its own. Are the figures embarrasing or is it because it has no idea. Let's not go down that path.

So what a success Jetstar has been. At least Aunty thinks so. But has it been?

When Jetstar was born, it clearly was with a silver spoon in its mouth. Aunty Roo made sure it never had to work hard for its routes so it got instant market share with Aunty's help. Very lucky because without that help Jetstar would be gone today.

And so we read in our beloved press what a great success story this is, with all the numbers, with all the support from Aunty Roo for Jetstar to do what ever it likes to continue this wonderful story. And we believe it don't we?

Well maybe all is fair in love and war. Jetstar got Aunty Roo's help and Virgin Blue got help from Ansett. But which success story would you chose as the real success?

:rolleyes:

[404 Titan]

J* were created to scr*w DJ and to scr*w QF employees. Nothing more, nothing less. If one looks at it from this angle I would say they have been very successful wouldn’t you?

[Sunfish]

Agree with 404, however the chances of the ACCC ever nailing QF for predatory pricing are next to zero. I don't think they have anyone at the ACCC who would know the difference between an engine hour, block hour, cycle or seat mile (as a matter of fact I've forgotten too).

Then of course there is the question of a set of reasonable assumptions about cost allocations, let alone provisions for heavy maintenance, initial provisioning of rotables, spares leasing agreements etc.

There are a million ways to pull the wool over the ACCC's eyes and it is unlikley they would ever even guess they were being dudded.

For example, what spare engines does j* use (OK I know you don't replave them as a unit these days) does J* have access to QF's spares inventory? Even things like tyres and brakes? A rule of thumb used to be initial provisoning would cost 20% of the value of the fleet, even with all the computer models etc. Did J* have to provide for this?

Has J* provided for heavy maintenance?

You would need a very good ACCC team with very good BS sniffing abilities to ever dissect out J*'s real costs.

[Legal_Counsel]

These are excellent observations Sunfish and 404. Can anyone add to this because really it's time to spill the beans. :}

[Zigzag]

What about the "free" AOC (utilising the still current Impulse one). That is a very substantial leg-up no prospective start-up carrier in the world can do without!

The A320's? Could they have been so quickly ordered and acquired (no doubt cheaply), without the assistance of "Aunty Roo"? I think not.........

I believe Jetstar do look after their own inventory, however, once again, how much of it has been bought on the back of big brother?

[Legal_Counsel]

Yeah you are right their Zigzag, I had almost forgotten that impulse already got a jet AOC. And that is an amazing acquisition rate, considering. Are these aircraft owned? What would they have used as collateral ? :uhoh: Someone's cooking the books maybe.