The Alleged $200m mainline loss
Just what detail did the little fella give. I find details very scant, why didn't he make it a gazillion?
When you duck shove all sorts of costs through your consolidated accounts you can sort of make it say what you like, but there appears very little scrutiny in the financial industry and the media. Surely they all can't be Chairman's lounge members? :E |
When you duck shove all sorts of costs through your consolidated accounts you can sort of make it say what you like |
Yes, but load factors are only one piece of the puzzle. What are the costs of Qantas compared to Jetstar. Qantas aircraft could be full and not making a profit if the costs are high enough.
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Hmmm. Let's see.
Freight cartel charges ($200 mill)? "Commercial arrangement" to get Jetstar Pacific QF executives out of Vietnam (don't know how much that would have cost)? Wonder how Jitconnict are doing after all the cancelled Tasman flying? Wonder if they ever make a profit at all (their CEO doesn't even know if they have a bank acocunt)! Hmmm. Wonder how J* have been going with Japan post-Tsunami/earthquakes? Aaaaaahhhh doesn't matter anyway cause it can all be billed to that terrible entity - Qantas mainline. After all, Muffins and Coffee Airlines (sorry .... J*) is such an AMAAAAZZZZING business! |
If the Qantas flights are full and not making money then i dont think you should blame the pilots, maybe the man at the top has some explaining to do..
check out the loads to Frankfurt or Bangkok, and only one flight a day??? |
Worth keeping a tab
Someone with more intelligence than me should keep a running tab of the 'cross-subsidies' that exist ready for August 24th.
My one: - I use FF points to (unfortunately) fly J* to holiday destination. What's the bet QF reimburses J* the full cost of a full fare seat for my ticket? - What's the bet J* don't pay QF anything for FF points earned on J* flights UTR |
I totally agree, Qantas has a business that should almost be capable of printing money. Some would say though that AJ has started to try and streamline the operation starting with staff costs. I am just fed up with people saying that it is 'impossible' for Jetstar to actually be making a profit when all the evidence from around the world shows that LCC's can be highly profitable without the support of a big brother carrier e.g. Southwest, EasyJet, FlyBe, Ryanair etc. Not to mention they have been one of the only highly profitable areas of the airline industry through the recession out performing most legacy carriers..... except for maybe Qantas who have also sustained a profitable business in bad times...... maybe it hasn't been so badly managed afterall.
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Qantas are known for not issuing separate accounts for the parts of the business. The ONLY reason it has been issued this time is FOR EFFECT and softening up the market for what is coming.
I do not believe it for a nano second. If indeed international has failed to turn a profit for most of the last 15 years it speaks volumes for their management ability. |
except for maybe Qantas who have also sustained a profitable business in bad times...... maybe it hasn't been so badly managed afterall. Although you make a good point, Qantas did have a free kick since the demise of Ansett. I thought J* was a good move domestically but strongly believe the J* model long haul does not suit all the traditional Q punters hence the slow decline in mainline market share internationally, accelerating since the implication of J* international routes. |
So how did they justify all the capital investment with A380s?
They cannot have it both ways or suddenly say oops we got it wrong. This is all a game of smoke and mirrors. |
10 days or so since this went to air the more contrived the Q spin sounds. The storyline was fed convincingly to lateline by AJ in my view. Worth a listen again, something is not quite right. :suspect: |
Something smells bad, it almost sounds like they are getting set to close international altogether:ugh:
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Who else is thinking that Qantas 'International' will become Jetstar?
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ampclamp,
If indeed international has failed to turn a profit for most of the last 15 years it speaks volumes for their management ability. rodchucker, So how did they justify all the capital investment with A380s? |
Yes you are correct on recent statements re return on invested capital qan holder but AJ's recent quote of losing 200 million I believe is a very selective piece of info released for effect and conditioning.
My point stands. If Int is so bad what the hell have they done about it? Nothing that has worked according to their numbers. Why sink the 380 into it? The LAX and LHR routes are not businesses in isolation and dont require 20 or even 12 380s. I trust them as far as I could drag a loaded 380 as evidenced by their statements regarding the ALAEA and pilot's claims. If these people were straight with us just maybe they'd get somewhere in getting the changes they want. AJ had a perfect opportunity to capitalise on GDs sad record with staff relations but has been extremely disappointing. The unions exist and are stronger than ever because of them. They could make them irrelevant if they really wanted to try to take us with them. |
The big problem for mainline is the strength of the $A. For years with a near monopoly on the pacific routes to the USA QF basically printed $A from revenue from a very strong $USD and single handedly propped up the business.
Unfortunately the monopoly is over as is the weak $A, add to that the new competition from EK et al and its not hard to see that currently QF mainline is probably losing money. 2 points on this, the $A won't be so strong forever and more importantly why wasn't mainline given the chance to be able to make $$ with a more efficient fleet. After all, fuel costs are by far the biggest part of overall operating costs... |
Ampclamp,
AJ's recent quote of losing 200 million I believe is a very selective piece of info released for effect and conditioning. |
Cash on Hand
Qantas has $3 Billion in cash.Invest that at 6.5% without flying any aircraft anywhere and you still get a tidy profit.Makes you wonder why they bother with aircraft at all
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And how did they get that cash? Wasn't through 6.5%
(yes they floated but that money was spent on aircraft and regained) Perhaps if they opened qantas bank they would do ok... Their greed and cost cutting turns billions in profits every year... Can't be shutdown by casa and outsource all you like... The economics of the world baffle me!! |
i remember when i was there in 2001 that the low Australian dollar was
causing them a problem,now it's the high dollar,so which is it |
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