So you need a new fleet Leigh?
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For lots of reasons. The top one would be if you can put that same money into more productive assets to get an even higher return, which shouldn't be hard.
Really, if you look at the real estate Qantas has owned and sold over the years , two I’ll mention are Qantas house in the city and QCC QCD etc the capital gain plus rent on them would far exceed what they have made flying people.
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Actually, investors and regulators do have issues with the use of non-statutory measures.
Problems between accounting standards aside, revenue recognition remains an issue in many jurisdictions.
https://hbr.org/2016/07/where-financ...ll-falls-short
Problems between accounting standards aside, revenue recognition remains an issue in many jurisdictions.
https://hbr.org/2016/07/where-financ...ll-falls-short
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^^^^^^^^^^ buybacks ^^^^^^^^^^^
Everything will be sold, the operational side of the business will continued to be starved, proceeds going to buy back shares. The large institutions will sell at the top to the bagholders who chase momentum and trend as the business will have already eaten itself.
Everything will be sold, the operational side of the business will continued to be starved, proceeds going to buy back shares. The large institutions will sell at the top to the bagholders who chase momentum and trend as the business will have already eaten itself.
Yeah...you can only laugh at the prospect of a future capital raising when the impending capex mountain has to finally be climbed. You just feel Alan has a bulldozer in front of him to keep the path smooth but all that dirt being pushed is just being added to the mountain.
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^^^^^^^^^^ buybacks ^^^^^^^^^^^
Everything will be sold, the operational side of the business will continued to be starved, proceeds going to buy back shares. The large institutions will sell at the top to the bagholders who chase momentum and trend as the business will have already eaten itself.
Everything will be sold, the operational side of the business will continued to be starved, proceeds going to buy back shares. The large institutions will sell at the top to the bagholders who chase momentum and trend as the business will have already eaten itself.
Foreign nominee owners can walk away and the incumbent government is left with a carcass. This is precisely as was 'war gamed' by Macquarie and the APA consortium during the now failed private equity take-over.
As has been said many times before: "The Assets will go Private and the Debt will go Public". The day of reckoning is looming.
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The company has prior experience at manufacturing crisis.
Qantas need a new fleet.
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What point are you trying to make? Qantas have announced that they will exclude the proceeds of the sale from their underlying profit figures, because it is a one-off, the same as in previous years. I don't think anyone making financial or investment decisions has ever been confused about the difference between underlying and statutory profits.
Qantas have plainly made a judgement that there is greater value in a sale and leaseback arrangement, between freeing up capital, not having to have in-house property managers, and not having to split focus between running an airline and managing a commercial real estate portfolio.
Do you think Qantas should be spending time and money making decisions about Krispy Kreme leases in T1 instead of buying a new fleet?
What has changed is that Leases are now on the balance sheet as debt(ftom 30/6/19) compounding the strategy of having off balance sheet debt where leases used to sit. This amplifies debt to equity ratios.Strong companies have kept Assets on the books. Time will tell.
Qantas have plainly made a judgement that there is greater value in a sale and leaseback arrangement, between freeing up capital, not having to have in-house property managers, and not having to split focus between running an airline and managing a commercial real estate portfolio.
Do you think Qantas should be spending time and money making decisions about Krispy Kreme leases in T1 instead of buying a new fleet?
What has changed is that Leases are now on the balance sheet as debt(ftom 30/6/19) compounding the strategy of having off balance sheet debt where leases used to sit. This amplifies debt to equity ratios.Strong companies have kept Assets on the books. Time will tell.
Do you think Qantas should be spending time and money making decisions about Krispy Kreme leases in T1 instead of buying a new fleet?
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busdriver, that is the point made by Vjet. It's not about underlying vs one-off's, its what is done with the proceeds of the sales. Conversion of asset sales ---> Share Purchase and cancellation. Over 1/4 of the shares will have been cancelled since 2015 at the completing of this round.
ASX and Media Release Sydney, 21 February 2019 QANTAS DELIVERS STRONG FIRST HALF RESULT DESPITE HIGHER FUEL BILL
ASX and Media Release Sydney, 21 February 2019 QANTAS DELIVERS STRONG FIRST HALF RESULT DESPITE HIGHER FUEL BILL
REWARDING SHAREHOLDERS
In addition to the $500 million shareholder return announced August 2018, the Qantas Board has announced a further return of up to $500 million. This comprises an interim franked dividend increased to 12 cents per share to be paid on 28 March 2019 with a record date of 5 March 2019, as well as an on-market share buy-back of up to $305 million. This additional buy-back is expected to bring the total reduction of shares on issue to 28 per cent since 2015.
In addition to the $500 million shareholder return announced August 2018, the Qantas Board has announced a further return of up to $500 million. This comprises an interim franked dividend increased to 12 cents per share to be paid on 28 March 2019 with a record date of 5 March 2019, as well as an on-market share buy-back of up to $305 million. This additional buy-back is expected to bring the total reduction of shares on issue to 28 per cent since 2015.
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What has changed is that Leases are now on the balance sheet as debt(ftom 30/6/19) compounding the strategy of having off balance sheet debt where leases used to sit. This amplifies debt to equity ratios.Strong companies have kept Assets on the books. Time will tell.
Using surplus cash flow to fund asset purchases, like a fleet is simply beyond Fort Fumble. Short term strategy far more profitable for the insiders with lots of share options.
I’m hearing AIPA and Qantas are in discussions on a deal for the A350. I hope they do a better job this time and get the crew toilet and rest issues sorted before they agree to the money side of things.
Considering the 350 currently flies the longest sector Airbus no doubt will be the leading sunrise contender...
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Worth remembering that given the fleet metrics are so poor a new type is a given, but no doubt the intent will be somehow to lever down terms and conditions for the 'business case' Worked well last time!
With over 260 in service already, by the time the 'world's most important managers' decide better to call it project sunset..Or bananarama.
Worth remembering that given the fleet metrics are so poor a new type is a given, but no doubt the intent will be somehow to lever down terms and conditions for the 'business case' Worked well last time!
Worth remembering that given the fleet metrics are so poor a new type is a given, but no doubt the intent will be somehow to lever down terms and conditions for the 'business case' Worked well last time!