Fallacy or Fact - Qantas International losses
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Pilots returning from leave of absence from Qf to JQ.
QF covers the long service leave obligation whilst such pilots are flying for Jetstar.
Does J* have their own yield management department? Was told a while ago QF mainline staff in yield worked the figures as to what brand flies what route with which aircraft.
How much does J* pay QF group safety to work the QAR data & electronic storage of such data?
QF covers the long service leave obligation whilst such pilots are flying for Jetstar.
Does J* have their own yield management department? Was told a while ago QF mainline staff in yield worked the figures as to what brand flies what route with which aircraft.
How much does J* pay QF group safety to work the QAR data & electronic storage of such data?
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Capt Peacock.
I'll think you will find the Jetconnect emergency procedures manuals and training services on request are provided by Qantas.
Wasn't it some Qantas 737 management pilots sent over to manage jetconnects expansion?
I'll think you will find the Jetconnect emergency procedures manuals and training services on request are provided by Qantas.
Wasn't it some Qantas 737 management pilots sent over to manage jetconnects expansion?
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With regard to NRT 330 ops, I ran into some engineers a year ago who were staying at the QF crew hotel in Narita. They were there on a month long basing.
According to them, they dispatch one QF A330 a night, and 3 JQ A330's. Why then are they staying in QF accom with allowances? How much do JQ contribute to this?
Surely it makes more sense for JQ staff to look after the bulk of the arrivals and departures (75%) while they can subcontract to QF for the minority work.
According to them, they dispatch one QF A330 a night, and 3 JQ A330's. Why then are they staying in QF accom with allowances? How much do JQ contribute to this?
Surely it makes more sense for JQ staff to look after the bulk of the arrivals and departures (75%) while they can subcontract to QF for the minority work.
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If you really wish to dig deep, how much do the original A330's cost QF? Or was it part of a deal with Airbus to supply free aircraft as compensation and as a sweetener for the 380 deal?
Would an Airbus salesman know how CEO's work? Pehaps they could assume that in ten years they will not be there. How about we sell aircraft now at a 50% discount, good for your bottom line in the next few years (read bonus), and in ten years from now you pay up to 3 times market rates. What bonus driven CEO would not be a part of that?
Is it true the first 330's in QF were at little or no cost. They are now with JQ. How much do they pay?
Also, do Airbus have cheaper maintenance costs over a Boeing in the first 7 to 10 years? After that, are they more expensive to maintain? Given that JQ will be handing back to QF the Airbus 330's at about 10 years of age, replacing them with 787's, how does that deal appear to you QF shareholders?
Would an Airbus salesman know how CEO's work? Pehaps they could assume that in ten years they will not be there. How about we sell aircraft now at a 50% discount, good for your bottom line in the next few years (read bonus), and in ten years from now you pay up to 3 times market rates. What bonus driven CEO would not be a part of that?
Is it true the first 330's in QF were at little or no cost. They are now with JQ. How much do they pay?
Also, do Airbus have cheaper maintenance costs over a Boeing in the first 7 to 10 years? After that, are they more expensive to maintain? Given that JQ will be handing back to QF the Airbus 330's at about 10 years of age, replacing them with 787's, how does that deal appear to you QF shareholders?
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One for the ATO...Who pays the accommodation expenses for the overseas based crew "slipping" in Darwin/Brisbane etc for periods up to two weeks (maybe more) whilst operating exclusively within Australia? Is it legal to effectively live and work in Australia for these lengthy stays? Who pays Jitconnict accom. expenses?
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Be carefull what you wish for
Ladies and Gents, ther si no doubt that the Qantas accounting department is a sham, we all know it, you can list a million reasons if you like. Yes, they want mainline to look bad so that they can put negative pressure on wages, we all know this.
But imagine this. Each time one of these services is charges to another business segment at commercial rates there is a little thing called GST, sales tax and other taxes. If commercial rates are charged based on business segmentation for stand alone group businesses, the tax bill would be astronomical.
If you want to stop the rot, get rid of AJ first, Gillard Second and BB third.
But imagine this. Each time one of these services is charges to another business segment at commercial rates there is a little thing called GST, sales tax and other taxes. If commercial rates are charged based on business segmentation for stand alone group businesses, the tax bill would be astronomical.
If you want to stop the rot, get rid of AJ first, Gillard Second and BB third.
Baggage handling at Aust International Terminals
Baggage handling operations are operated and paid for by QF at Australian International Terminals. JQ will not pay for the scanning systems that every other client airline uses so the QF/QGS staff have to manually "bingo card" the bags, which takes longer and which requires an extra worker allocated to the flight.
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Fed sec,
I'm assuming you're serious here and not just grandstanding but what you are looking for is implausible. For an organisation as complex as Qantas it would take a qualified accountant with full access to all documents and finance staff weeks to get to the stage where they understand how it all operates. From your posts here it is apparent that you know as much about accounting and finance as I do about fixing planes hence 'the full picture' will always remain elusive.
If you really want to understand the source of the problems with Qantas international you could request the profitability for each of the international routes for the last few years. This is fraught with danger though since I suspect it would become apparent that there are routes that haven't made a profit for years and have no prospect of making an acceptable return anytime soon hence either routes or costs need to be cut. It is far easier to remain in ignorance and keep pretending that management are evil and corrupt.
With the unions currently in negotiation, I would suspect they have all been fed this line about the struggling business. Under the FWA, both parties are obliged to justify any claim and I want them to demonstrate to ALAEA members at least how the expenses are billed to each portion of the group. I don't want Strambi to come in with some pie charts and a powerpoint and just ask us to trust him, I want the full picture.
If you really want to understand the source of the problems with Qantas international you could request the profitability for each of the international routes for the last few years. This is fraught with danger though since I suspect it would become apparent that there are routes that haven't made a profit for years and have no prospect of making an acceptable return anytime soon hence either routes or costs need to be cut. It is far easier to remain in ignorance and keep pretending that management are evil and corrupt.
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If you could also ring a few of your crew in Cairns and query them as to why JQ330's arrive at 5am in the morning from Japan, and depart early afternoon. Why do they sit there with the APU running on a stand off bay for hours? A ground power unit would save a fortune. Or is there a deal that another company pays for the fuel, thereby costing them less than the ground power?
Story I was told a year or so back after getting home from Europe via staff travel through Japan and Cairns ...
Story I was told a year or so back after getting home from Europe via staff travel through Japan and Cairns ...
But imagine this. Each time one of these services is charges to another business segment at commercial rates there is a little thing called GST, sales tax and other taxes. If commercial rates are charged based on business segmentation for stand alone group businesses, the tax bill would be astronomical.
The consumer always pays the GST, and companies claim a credit on the GST they pay.
If this were not the case, there would be a 10% tax from factory to consumer. Ultimately business passes the tax on and gets credits for everything they pay.
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Why does Qantas have to pay Jetstar for duty travel yet Jetstar crew just turn up in the Qantas booking system?
I'm also intrigued as to how you can run an airline the size of Jetstar from one floor of an office block.
I'm also intrigued as to how you can run an airline the size of Jetstar from one floor of an office block.
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If you really want to understand the source of the problems with Qantas international you could request the profitability for each of the international routes for the last few years.
There are two sides to the spreadsheet
Going-Boeing asks about fares paid to/from JQ on codeshare flights.
The QF 2010 Annual Report shows a total group income of nearly $14 billion, of which JQ earns $2 billion. So the "loss" of $200m attributed to QF international is 200/14000 or about or 1.4% of the total group revenue, or 10% of JQ revenue.
You don't need to fiddle the amounts earned which are attributed to the pro-rated fares much to move significant overall incomes from QF to JQ.
And if both costs and incomes are worked the "right" way, the apparent balance of the bottom line between QF and JQ can be swung to make JQ look much better than it really is.
SB
The QF 2010 Annual Report shows a total group income of nearly $14 billion, of which JQ earns $2 billion. So the "loss" of $200m attributed to QF international is 200/14000 or about or 1.4% of the total group revenue, or 10% of JQ revenue.
You don't need to fiddle the amounts earned which are attributed to the pro-rated fares much to move significant overall incomes from QF to JQ.
And if both costs and incomes are worked the "right" way, the apparent balance of the bottom line between QF and JQ can be swung to make JQ look much better than it really is.
SB
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Qan Shareholder (as am I),
Do you not agree that QF operates the oldest and most fuel inefficient fleet compared to our competitors? Can you tell me the fuel burn of a 777 versus a 747 on the routes we operate? Even though some aircraft are depreciated to an extent, as they age the reliability and maintenance expenses offset the advantages.
If you wish to say how unprofitable we are, perhaps you should consider that to do a proper job we require the right tools. Not left handed screwdrivers when we are right handed as a certain media manager might report. Every day in Qantas (lets say 60 to 70 747 and 380 sectors are flown) and the fuel burn is about 100T per day per aircraft compared to a 777 operating the same amount of hours, how much does this cost? Petty cash you QF accountants seem to call it. For a similar payload. Duh?
Qan Shareholder, do you agree the highest paid airline CEO of the last decade made the correct choices with regard to the fleet? Was putting all the eggs in the 787/380 basket the masterstroke that will take QF to the forefront of globalisation?
Can you tell me how much money some JQ330 Captains were paid in the last 12 months compared to QF ones? Also, some JQ 320 captains were paid a hell of a lot more than some 737 Captains. Yet you hang onto the notion that us and the engineers are the entire and total cause of any woes QF faces. In your opinion, if we are the only problems, can you not see why things have reached the point where they are now?
Then again, do you not understand the cost of the action your beloved managers are about to provoke? Will it cost you more than it saves? Even if you win, the feedback from the public is that the brand damage you will incur offsets the gains. Then again, the accountants only see the numbers, not the opportunity costs.
Do you not agree that QF operates the oldest and most fuel inefficient fleet compared to our competitors? Can you tell me the fuel burn of a 777 versus a 747 on the routes we operate? Even though some aircraft are depreciated to an extent, as they age the reliability and maintenance expenses offset the advantages.
If you wish to say how unprofitable we are, perhaps you should consider that to do a proper job we require the right tools. Not left handed screwdrivers when we are right handed as a certain media manager might report. Every day in Qantas (lets say 60 to 70 747 and 380 sectors are flown) and the fuel burn is about 100T per day per aircraft compared to a 777 operating the same amount of hours, how much does this cost? Petty cash you QF accountants seem to call it. For a similar payload. Duh?
Qan Shareholder, do you agree the highest paid airline CEO of the last decade made the correct choices with regard to the fleet? Was putting all the eggs in the 787/380 basket the masterstroke that will take QF to the forefront of globalisation?
Can you tell me how much money some JQ330 Captains were paid in the last 12 months compared to QF ones? Also, some JQ 320 captains were paid a hell of a lot more than some 737 Captains. Yet you hang onto the notion that us and the engineers are the entire and total cause of any woes QF faces. In your opinion, if we are the only problems, can you not see why things have reached the point where they are now?
Then again, do you not understand the cost of the action your beloved managers are about to provoke? Will it cost you more than it saves? Even if you win, the feedback from the public is that the brand damage you will incur offsets the gains. Then again, the accountants only see the numbers, not the opportunity costs.
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1. In the recent FWA case it was determined, under oath, that the $65m "dividend" Jetconnect paid to QF was in fact a sham arrangement where the $65m actually originated from QF. Where exactly does this $65m appear in QF's accounts?
2. According to AJ at the recent press club address, QF International has been a "poor business" for many years.
Half Year Report Dec 2010
Annual Report 2008
Annual Report 2007
Are these statements, as reported in legally enforceable documents, incorrect? Why has QF failed to report the state of QF Int to shareholders for such a long time? If these statements are correct, how is it possible that AJ has only become aware of the dire circumstances that QF International finds itself in such a short time frame?
3. Depreciation : Jetstar $17m, Virgin $203m. Virgin's fleet is slightly larger than Jetstar's.
2. According to AJ at the recent press club address, QF International has been a "poor business" for many years.
Qantas improved yield by 9 per cent, and increased capacity by 3.3 per cent demonstrating a strong revenue recovery across both international and domestic business.
Strong increases in both yield and load factors on the Qantas international network resulted in an outstanding contribution to the overall Group performance.
Qantas International experienced a strong year, with positive operating conditions expected to continue into 2008.
Are these statements, as reported in legally enforceable documents, incorrect? Why has QF failed to report the state of QF Int to shareholders for such a long time? If these statements are correct, how is it possible that AJ has only become aware of the dire circumstances that QF International finds itself in such a short time frame?
3. Depreciation : Jetstar $17m, Virgin $203m. Virgin's fleet is slightly larger than Jetstar's.
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http://www.iasc.gov.au/applications/files/4637.pdf
And I'm sure all are aware J* have their own corporate, Government & Industry Affairs department.
Provided by Qantas at $0 cost of course.
And I'm sure all are aware J* have their own corporate, Government & Industry Affairs department.
Provided by Qantas at $0 cost of course.
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Careful people. Touchy subject at the moment and the big Q are ready to hang anyone they can who touches the QF/JQ accountancy subject. Ask people who have done EP's recently. It seems they are scared of too many questions being asked.
C'mon, us idiots are paid to fly (and maintain) the planes, not question management ethics.
It seems there is pressure mounting from a few angles. As a shareholder, I exercised my right to make a complaint to ASIC. It appears I am not the only one. I was informed that laws and precedents of recent times have made directors and managers subject to more liability if accusations are proven. The impression I got (implied without details) was that I was not the only complainant against this company.
By the way, anyone been reading about the implications of the new laws with regards to Shareholders voting on directors remuneration? Do a search and get educated, surely enough QF staff have shares to kick a goal on this one. It will take until late next year, but the posts have moved (in our favour), if we vote as a group against them.
C'mon, us idiots are paid to fly (and maintain) the planes, not question management ethics.
It seems there is pressure mounting from a few angles. As a shareholder, I exercised my right to make a complaint to ASIC. It appears I am not the only one. I was informed that laws and precedents of recent times have made directors and managers subject to more liability if accusations are proven. The impression I got (implied without details) was that I was not the only complainant against this company.
By the way, anyone been reading about the implications of the new laws with regards to Shareholders voting on directors remuneration? Do a search and get educated, surely enough QF staff have shares to kick a goal on this one. It will take until late next year, but the posts have moved (in our favour), if we vote as a group against them.