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QF Group possible Redundancy Numbers/Packages

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QF Group possible Redundancy Numbers/Packages

Old 25th Jun 2020, 23:01
  #501 (permalink)  
 
Join Date: Aug 2006
Location: melbourne
Posts: 34
I guess a fair bit of the capital raising will go towards paying this little gem off. This was buried deep within the ASX announcement and was glossed over using weasel words however I read it as ďfuel hedging losses are costing QF $11-12 million per week!Ē

ďFUEL HEDGING
The Groupís fuel was fully hedged for the second half of FY20, and 90% hedged for the first half of FY21. With the significant decline in flying activity, the Groupís overall capacity flown has resulted in a substantial reduction in fuel consumption from April 2020 and the anticipated decline in consumption to June 2021 will lead to the non-cash recognition of hedge ineffectiveness of $550Ė$600 million in the FY20 statutory result.Ē
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Old 25th Jun 2020, 23:39
  #502 (permalink)  
 
Join Date: Apr 2016
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Originally Posted by blubak View Post
Its cheaper,dont listen to all the spin about them being in better condition when & if they decide to fly them again,after sitting over there for well over 12 months,getting them serviceable will be a nightmare.
Easier (cheaper) for engineers in the US to store + reactivate aircraft, who wouldn't whinge about every small little detail and non compliance. Also if they decide not to activate it, noneed to fly Alice Springs > USA again just to scrap.
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Old 25th Jun 2020, 23:53
  #503 (permalink)  
 
Join Date: May 2011
Location: Oz
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Originally Posted by pig dog View Post
I guess a fair bit of the capital raising will go towards paying this little gem off. This was buried deep within the ASX announcement and was glossed over using weasel words however I read it as ďfuel hedging losses are costing QF $11-12 million per week!Ē

ďFUEL HEDGING
The Groupís fuel was fully hedged for the second half of FY20, and 90% hedged for the first half of FY21. With the significant decline in flying activity, the Groupís overall capacity flown has resulted in a substantial reduction in fuel consumption from April 2020 and the anticipated decline in consumption to June 2021 will lead to the non-cash recognition of hedge ineffectiveness of $550Ė$600 million in the FY20 statutory result.Ē
I saw that and after an earlier announcement I thought our hedging loses werenít so high. So it made me drag out the 5th May 2020 announcement(included below the relevant part) that clearly states losses until September 2020 were $145m. So QF have lost $400m+ extra, using the 2 announcements, from October until the end of December, that will be written off? Something doesnít add up? As you say, their weasel corporate words are designed to give wriggle room about disclosure.

ďThe Groupís remaining Brent crude oil hedging to September 2020 is in outright options with no risk of further hedge losses. As at today, the cash impact of all foreign exchange and fuel hedging between now and the end of September 2020 is a A$145 million cash outflow.Ē

https://www.qantasnewsroom.com.au/me...ecovery/#_ftn1
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Old 25th Jun 2020, 23:54
  #504 (permalink)  
 
Join Date: Jan 2012
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What does the recently completed share buy back (at $5.56) and now the SPP at 3.65 mean for the bottom line? It gives them access to more cash, but it would be a net loss wouldnít it?
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Old 26th Jun 2020, 00:05
  #505 (permalink)  
 
Join Date: Dec 2000
Location: Australia
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You have to raise the money to pay for the handout Joyce will get when this is all ‘over’.
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Old 26th Jun 2020, 00:26
  #506 (permalink)  
 
Join Date: Jun 2020
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Originally Posted by Lookleft View Post
When A380's start becoming freighters then they are already in the country that has the world's biggest freight companies.
Not sure the economics of operating/maintaining such a small fleet would be worth it.
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Old 26th Jun 2020, 01:01
  #507 (permalink)  
 
Join Date: Sep 2009
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Originally Posted by ozbiggles View Post
You have to raise the money to pay for the handout Joyce will get when this is all Ďoverí.
love him, hate him, I donít care. However Iím glad heís the one in the big seat. It means the company will survive.

At the end of the day Qantas ainít a government entity anymore. Many still behave as if it is.
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Old 26th Jun 2020, 01:07
  #508 (permalink)  
 
Join Date: Jul 2010
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Realistically, when the government sends in the army over a few cases of COVID - 19 in Victoria, international flying is unlikely to resume this year with the exception of NZ and possibly limited travel bubbles. Profitable international flying will take even longer to come back and the network planners will be starting from scratch with a clean sheet of paper rather than simply reinstating the previous routes. Due to the distances involved in international flying from Australia, widebody aircraft are normally required to reach most destinations in Asia and beyond, these will be difficult to fill at first. Running a hub through Darwin with the B737s into SE Asia could be considered until direct routes become viable again.

City pairs which previously supported direct flights may have to go through a hub instead, double daily may go daily, wide body may go narrow body. Certain routes may turn into cash cows if competing airlines withdraw. Matching capacity growth to pax growth needs to be done right else money is lost or profits are missed.

When to jump back in requires careful judgement due to the lead time required and the necessity to operate at a loss for as short a period as possible. SIA are flying a skeleton international network due to the need to maintain connectivity, but this needs Singapore government backing as pax numbers reaching three digits is cause for celebration.

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Old 26th Jun 2020, 01:14
  #509 (permalink)  
 
Join Date: Jun 2020
Location: Sydney
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QF A380 is one for the history book now, you won't see it flying people ever again. They are just letting the shareholders down lightly.
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Old 26th Jun 2020, 01:22
  #510 (permalink)  
 
Join Date: Aug 2007
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Originally Posted by Blueskymine View Post
love him, hate him, I donít care. However Iím glad heís the one in the big seat. It means the company will survive.

At the end of the day Qantas ainít a government entity anymore. Many still behave as if it is.
this in spades
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Old 26th Jun 2020, 01:34
  #511 (permalink)  
 
Join Date: Dec 2000
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I have professional respect for Joyce (I am a shareholder after all!). We have seen he will take the hard decisions for the company and that is the point. Like all business, Qantas is just that. You could be the pope himself working for any company but if the CEO needs to cut you he/she will. I question however whether anyone is worth 24 million a year who then goes onto say we need to make cuts to be viable.
Anyway we must all face forward and continue making progress...just remember the brace position.
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Old 26th Jun 2020, 01:38
  #512 (permalink)  
 
Join Date: Nov 2012
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Originally Posted by Blueskymine View Post
love him, hate him, I don’t care. However I’m glad he’s the one in the big seat. It means the company will survive.

At the end of the day Qantas ain’t a government entity anymore. Many still behave as if it is.
But is it competance or luck that has resulted in Qantas faring better than others? Have there been any radical decisions taken that few other CEOs might have?

Im not trying to sound negative, but its a question fanboys should ask.

I think that fleets of 4 engine aircraft and tired 330s in this day and age is terrible, however it doesnt look so bad when a black swan event grounds any fleet you have anyway.
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Old 26th Jun 2020, 08:06
  #513 (permalink)  
 
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Originally Posted by normanton View Post
They spent $500m on refurbs for 6 of them. At least 6 will come back. My guess is the remaining money from the share raising will be used to buy 350s.
Only three are done, two are a WIP, and QF have sent refits to retirement not long after they were done in the past
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Old 26th Jun 2020, 08:38
  #514 (permalink)  
 
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Originally Posted by ozbiggles View Post
I have professional respect for Joyce (I am a shareholder after all!). We have seen he will take the hard decisions for the company and that is the point. Like all business, Qantas is just that. You could be the pope himself working for any company but if the CEO needs to cut you he/she will. I question however whether anyone is worth 24 million a year who then goes onto say we need to make cuts to be viable.
Anyway we must all face forward and continue making progress...just remember the brace position.
How much has he devalued the company by today with a 9% drop in the share price.
I would rather have my money in the bank earning 1% as opposed to letting someone gamble with it & having no obligation to repay it when suddenly its not there any more.
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Old 26th Jun 2020, 09:25
  #515 (permalink)  
 
Join Date: Jun 2011
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Joyce is an incompetent business owner.

He has built a management Ďteamí on total lack of vision and complete focus on remuneration.

No vision, no instinct, no feel and no understanding of, nor for, the business.

He has risen to the top of a middling field by being a total yes man (Iím deliberately leaving the bending over jokes aside) and _always_ pleasing the boss.

Thatís the beginning and end of it. In short, the antithesis of ANYONE I would employ and if I hadnít seen such incompetence first hand Iíd never have believed it.

The board and the bankers that back the tool have exactly the same non experience in anything business related so they think heís great.

None of them would be able to competently manage so much as a cafe. If they had, Qantas would be the type of airline it was 30+ years ago where everyone gave their all as a matter of course.



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Old 26th Jun 2020, 09:31
  #516 (permalink)  
 
Join Date: Sep 2009
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Originally Posted by Lapon View Post
But is it competance or luck that has resulted in Qantas faring better than others? Have there been any radical decisions taken that few other CEOs might have?

Im not trying to sound negative, but its a question fanboys should ask.

I think that fleets of 4 engine aircraft and tired 330s in this day and age is terrible, however it doesnt look so bad when a black swan event grounds any fleet you have anyway.
I suppose an analogy is this.

Qantas is like a conservative 60+ year old couple living in the outer burbs who own everything, have various investments and pay for things in cash.

Other airlines are like a gen y share trader who own nothing, lease everything and has done pretty well
in the good times.

Itís good to own things when the times are bad. Qantas mostly owns itís ageing fleet.
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Old 26th Jun 2020, 09:35
  #517 (permalink)  
 
Join Date: Jun 2011
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Yep - incompetent, over the hill and not in it for anything but the cash.

Contain my excitement and tell me how I sign up to work for a failing and unenthused dinosaur.....
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Old 26th Jun 2020, 10:02
  #518 (permalink)  
 
Join Date: Nov 2012
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Originally Posted by Blueskymine View Post
I suppose an analogy is this.

Qantas is like a conservative 60+ year old couple living in the outer burbs who own everything, have various investments and pay for things in cash.

Other airlines are like a gen y share trader who own nothing, lease everything and has done pretty well
in the good times.

Itís good to own things when the times are bad. Qantas mostly owns itís ageing fleet.
Imagine owning a modernised fleet and what could have been achieved over the last 10 years.

Also Qantas is not a conservative 60 year old couple, what they lack in lease commitments they make up for in debt.

Right now the answer seems by sheer luck to be correct, but with the wrong working.

In my opinion AJ has not done anything that any other CEO would have done in handling the crises. It's the past performance I'm dubious about.
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Old 26th Jun 2020, 11:47
  #519 (permalink)  
 
Join Date: Jun 2011
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With multiple billion dollar profits leading up to this year, decent reserves of cash to stay afloat for 18 months and good financial discipline have put the company in one of the best positions for an airline worldwide in dealing with this. The way some posters here are talking they would rather the airline be loaded up to the eyeballs in debt paying off orders of dozens of 777s.

Being in this position didnít come about by luck, it was due to smart financial management.
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Old 26th Jun 2020, 13:04
  #520 (permalink)  
 
Join Date: Nov 2012
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Originally Posted by dr dre View Post
With multiple billion dollar profits leading up to this year, decent reserves of cash to stay afloat for 18 months and good financial discipline have put the company in one of the best positions for an airline worldwide in dealing with this. The way some posters here are talking they would rather the airline be loaded up to the eyeballs in debt paying off orders of dozens of 777s.

Being in this position didnít come about by luck, it was due to smart financial management.
Smart finacial management, or inaction that resulted in a favorable position this time around?

We can all imagine our own 'what if's', but I dont have any major criticism of the handling of the current crises to date.
Whether the handling has been the stuff of genius, or simply a CEO doing his/her job is what tempers my praise.
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