PPRuNe Forums - Feb 21 - Qantas due to release its first-half results today has been caught off guard

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Feb 21 - Qantas due to release its first-half results today, caught off guard

Quote:

Qantas director caught up in corruption scandal

"Qantas has been caught off guard by the revelation that one of its non-executive directors, Corinne Namblard, is part of an investigation into the corruption scandal surrounding the world’s oldest surviving bank, Italy’s Monte dei Paschi di Siena."

With the national carrier preparing to release its first-half results on Thursday, the board at Qantas was only made aware of Ms Namblard’s connection to the long-running scandal in Siena on Wednesday, when The Australian Financial Review sought comment from the director. Ms Namblard, relatively unknown in the Australian market until her appointment to the Qantas board in June 2011

"The Qantas director specifically denied reports in local Italian media that she had personally been charged in relation to the investigation. “I feel very strongly about this, my personal reputation is clearly at stake here,” Ms Namblard said.

“I have to officially make a very clear statement that there are absolutely no charges. Yes, there are investigations going on. Yes, we have been caught in the process of those investigations."

“My lawyers and myself have repeatedly said things have been done by Galaxy above the board and in a very transparent manner.”

Asked why the Qantas board was not aware of the ongoing investigation in Italy, which has proceeded to a preliminary hearing, Ms Namblard said the matter had been discussed with the headhunter who recruited her to the director role and “other people” were aware of it." my bold

Qantas director caught up in corruption scandal

Hmm, Fun way to start off today's proceedings.. could be a long day for the PR script re-writers me thinks... more to come...

QF half year profit

Its $111m. Up 164%.

But... A Chunk of it is from canceling 35 x 787s. So the big wigs will get their bonus from making a good profit based on a terrible decision. :ugh:

Qantas board member denies wrongdoing | News.com.au

I would suggest to allow the court proceedings to run it's natural course.

In the meantime, how about running an airline and CLEANING your aircraft the photo of the A380 flag ship is a disgrace.

MC

One assumes that was taken when she was sat out in Singapore after the accident.....

What a joke this profit announcement is.

Sacrafice long term growth with the 787s and the companies viability for a Short term profit just for the sake of a few bonuses.

Geniuses :ugh:

Please p1$$ off Alan, and take that miserable board with you.

Hear, hear, ugly brother

Quote:

It included $125 million in cash from Boeing for cancelling firm orders for 35 of the long-delayed 787 Dreamliner planes.

Read more: Boeing cash papers over Qantas cracks]

Cancelling frees money in your account, but you still pay a penalty (so you pay for an aircraft you're not buying)

Quote:

Qantas emphasised that all of its operations including Jetstar were profitable apart from its premium international division. But it highlighted the fact that the losses of Qantas International had been reduced by 65 per cent to $91 million in the first half.
Read more: Boeing cash papers over Qantas cracks]

A 65% reduced loss is still a loss

How much "off balance sheet debt" is Qantas carrying?
Hows that credit rating looking?:sad:

Quote:

But it highlighted the fact that the losses of Qantas International had been reduced by 65 per cent to $91 million in the first half.

I (& many others) don't believe that QF International is losing money - the high load factors would indicate solid profits. The only way for there to be a "loss" would be ongoing payment of Jetstar expenses and the carrying of a significant excess of staff caused by the gifting of routes to Jetstar and some foreign airlines. Management is on-track to close down the mainline international operation.

This just underlines the fact the management are only in it for the short term bonus. I could never understand why QF never went back to Boeing and took a tougher stance over the 787.

Instead of cancellations and write downs, why not say to Boeing that due to the delayed deliver of the 787, we require x number of brand new 767 (I assume that the new builds incorporate greater fuel saving technology, after all, we keep getting told that 787 is a replacement for A330 at J*, which are a replacement for gas guzzling 767's at QF) until such time as you can deliver the aircraft we are buying.

This allows QF to have a fuel saving product as well as a product that would keep its paying customers happy, all with little to no cost.

Could this have been achievable, or am I simply being deluded SLF?

Ps, I know logic is as much a swear word in aviation as it is in my field of rail, but one can dream, can't I?

You can fly an aeroplane full and still lose plenty of dough.

The number one cost remains fuel. If you're charging the same for tickets as your competitors - which you need to do to fill the aeroplanes - but are flying aeroplanes that burn 30% more per ASK (744 vs. 77W) you're going to lose.

That's the real reason international continues to burn money...literally.

Management book the bonuses for the failures of 10 years ago and staff are left to pay the price.

good to see that the Copenhagen sales are up..... :suspect:

.

TIMA9X

I'm looking forward to hearing more about the "Transformotion Process" as outlined at 0:33.

Hmmm
Something wrong with my calculator. $111 mil profit less compo ($125mil) is $14 mil loss down from $40 mil profit 1 year ago so going backwards ?? , but I'm sure I must be wrong.
Need to prob use my iPhone calc app next time.

Fuel and Fuel Hedging

Qantas pays for its fuel in $US.
Qantas also used to boast about its hedging strategy.
They've been quiet about that for awhile
Perhaps they stuffed it up?
Anyone surprised if they did ?

Media reporting $100m reduction in domestic due to competitive activity from DJ. Can see the next lot of headlines already.

Sad but entirely predictable whilst this management team are in town.

Described on the screen shot above as a North Korean propaganda video.

Kim Jong Al ??

I generally breeze over the load factors.

I mean if you're selling:
- 20 seats and you only manage to sell 16, then you'll have an 80% load factor.
- 10 seats and you only manged to sell 8, then you'll have an 80% load factor.

So even though you've reduced the number of seats available to be sold/consumed, in both cases your load factor remains steady. ASK, RPK, unit cost etc are all far more useful in my opinion.

Yet to read the report fully.