JETSTAR ASIA'S profit falls 80 per cent last financial year
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JETSTAR ASIA'S profit falls 80 per cent last financial year
Cost challenge ... rising fuel and operating expenditure has hit Jetstar Asia. Photo: Reuters
JETSTAR ASIA'S profit fell 80 per cent last financial year as the Singapore-based budget airline faced a bigger fuel bill and tough competition.
Despite Qantas touting Jetstar Asia as the ''most profitable and best low-cost network based in Singapore'', accounts recently lodged with Singaporean regulators show that the airline is still struggling to post strong results eight years after it was established in the city-state.
The documents reveal that Jetstar Asia posted a profit of $S4.37 million ($3.36 million) for the year to June, down from $S22.47 million a year earlier.
Jetstar Asia has faced tough competition from its main rival, Malaysian budget airline AirAsia, as well as from the Singapore Airlines-backed Tiger Airways and Scoot.
Revenue from passengers and cargo rose 48 per cent to $S473 million for the year, while other income derived primarily from sub-leasing planes increased slightly to almost $S44 million.
But Jetstar Asia's fuel bill rose to $S214 million, from $S128 million previously, while its aircraft operating costs also rose 29 per cent. The airline's fleet increased by four A320s to 16 during the year, which partly explains the increase in its fuel bill.
Qantas did not disclose the bottom-line performance of Jetstar Asia when it released its annual results in August, instead highlighting a 38 per cent boost in the offshoot's capacity and improvement in unit costs.
The latest accounts show Jetstar Asia's accumulated losses stood at $S67 million as at June 30.
Although its liabilities exceeded its assets by $S9 million, Jetstar Asia said its accounts had been prepared on the basis of it as a going concern because its holding company, Newstar Investments, had ''undertaken to provided continuing financial support''.
Qantas has a 49 per cent stake in Jetstar Asia's holding company while Dennis Choo, a Singaporean businessman and long-time Qantas associate, has the remainder.
The Singapore airline has been Qantas' biggest investment in the low-cost aviation market in Asia.
Jetstar's other longest established affiliate, Jetstar Pacific, has not turned a profit since Qantas bought a cornerstone stake in it in 2007. Vietnam Airlines is the other shareholder.
Jetstar Pacific is considering launching its first international routes from Vietnam this year.
Jetstar also began a joint venture in Japan last year, and hopes to begin a budget offshoot in Hong Kong by the middle of this year. The latter still requires regulatory approval.
my bold
The spin doctors at Q will be working overtime tonight me thinks...
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And Alan Joyce says that QF Intl can't return the cost of capital? How interesting. Also why does 3K have S$44 mil of leasing revenue? Who is giving them the planes and who are they leasing them to? If not for this leasing revenue their losses would have been SGD40 mil. Very oh dear.
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Jetstar Asia profit hit by fuel bills, competitionJetstar doubts fuelled by Singapore figures | Plane Talking
Deception and lies from the CEO with the backing of the board. Is Alan going to confess all with Oprah? How much longer do we have to endure this ineptitude?
Burning thousands of tonnes of fuel per year to sell muffins or spring rolls. The smartest guys in the room are starting to look dumber and dumber.
The really sad thing is that those within the industry always knew it was a con and yet the reality is only now being published in mainstream media. Surely Shirley cant last much longer. On yer bike Alan and stop experimenting in real time based on a flawed thesis. It aint working and your credibility is at rock bottom.
Deception and lies from the CEO with the backing of the board. Is Alan going to confess all with Oprah? How much longer do we have to endure this ineptitude?
Burning thousands of tonnes of fuel per year to sell muffins or spring rolls. The smartest guys in the room are starting to look dumber and dumber.
The really sad thing is that those within the industry always knew it was a con and yet the reality is only now being published in mainstream media. Surely Shirley cant last much longer. On yer bike Alan and stop experimenting in real time based on a flawed thesis. It aint working and your credibility is at rock bottom.
Last edited by schlong hauler; 15th Jan 2013 at 20:51.
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I did read the article. It was the documents refered to in red that I'd be interested seeing.
Despite Qantas touting Jetstar Asia as the ''most profitable and best low-cost network based in Singapore'', accounts recently lodged with Singaporean regulators show that the airline is still struggling to post strong results eight years after it was established in the city-state.
DrPepz
I cannot be bothered looking thru all the figures but I strongly suspect there is also leasing costs or capital costs associated with the aircraft being leased out by J*A. The $44 mil of leasing revenue isn't all profit so to say that without the lease income the loss would have been $40 mil isn't quite on the mark.
However it's probably a fair guess to say that the leasing income contributed significantly to the 4 mill profit.
Also why does 3K have S$44 mil of leasing revenue? Who is giving them the planes and who are they leasing them to? If not for this leasing revenue their losses would have been SGD40 mil. Very oh dear.
However it's probably a fair guess to say that the leasing income contributed significantly to the 4 mill profit.
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Logic required
The bottom line is irrelevant. The company still churns out executive bonuses, retention and sign-on bonuses and other ditties. Plus, those 'leasing arrangements' for a number of services also create a nice little income for selected individuals. Indeed there is a whole new world out there that the plebs (or shareholders) don't get to see or taste.
Wake up kiddies, the days of corporate values and company profitability went out in the 90's. Its now about creating a quick ****ty company, extracting quick easy money, quickly spinning a story when the turd loses its gloss and then quickly exiting stage left at the right time with pockets brimming with cash..
Wake up kiddies, the days of corporate values and company profitability went out in the 90's. Its now about creating a quick ****ty company, extracting quick easy money, quickly spinning a story when the turd loses its gloss and then quickly exiting stage left at the right time with pockets brimming with cash..
Last edited by my oleo is extended; 15th Jan 2013 at 21:42.
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They are operating on a signifanctly higher cost base than Tiger and AirAsia, yet they are forced to charge the same or less to fill seats. They are running SIN-KUL shuttles at 30% capacity after they added 400% capacity to this route late last year.
Even Tiger Singapore had a way below average year but they still managed $4m profit in Q1 FY13 and $5m in Q2.
Even Tiger Singapore had a way below average year but they still managed $4m profit in Q1 FY13 and $5m in Q2.
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ALAEA Fed Sec
To get Jetstar Asia's accounts, go to:
Accounting and Corporate Regulatory Authority Singapore
On the left, click on "buy information"
Scroll to the bottom of the page to "Extracts"
Search entity name "Jetstar Asia"
Then click on "Jetstar Asia" and choose
"Transaction Date" Last One Year
"Added value information" Financial Information
"Certification Required" Choose Yes
The first item returned will be
Annual Return by Local Company For Financial Year Ending 30/06/2012 (With Accounts)
Then follow the prompts and register, and the information is available for free. Either through post, or you can get someone to collect it in person.
Wheels Down - I am surprised that Jetstar decided to increase SINKUL from 17 weekly to 56 weekly. They regularly charge SGD28 one way with tax. The tax is SGD28 so the fares more often than not are between $0 and $10. The credit charge of $16 costs more than the fare. And not like anyone's going to be buying chicken rice for $12 for a 30 min flight.
To get Jetstar Asia's accounts, go to:
Accounting and Corporate Regulatory Authority Singapore
On the left, click on "buy information"
Scroll to the bottom of the page to "Extracts"
Search entity name "Jetstar Asia"
Then click on "Jetstar Asia" and choose
"Transaction Date" Last One Year
"Added value information" Financial Information
"Certification Required" Choose Yes
The first item returned will be
Annual Return by Local Company For Financial Year Ending 30/06/2012 (With Accounts)
Then follow the prompts and register, and the information is available for free. Either through post, or you can get someone to collect it in person.
Wheels Down - I am surprised that Jetstar decided to increase SINKUL from 17 weekly to 56 weekly. They regularly charge SGD28 one way with tax. The tax is SGD28 so the fares more often than not are between $0 and $10. The credit charge of $16 costs more than the fare. And not like anyone's going to be buying chicken rice for $12 for a 30 min flight.
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"You can't polish a turd....."
Not so sure about that. Those Mythbuster guys spent half an episode polishing a turd till it was very shiny!
Not so sure about that. Those Mythbuster guys spent half an episode polishing a turd till it was very shiny!