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Qantas Airways Ltd, Shanghai-Based China Eastern Airlines Corp and local partner Shun Tak Holdings Ltd each own a third of the $US198 million ($A257.14 million) venture. Shun Tak joined the venture about a year after it was first announced in an attempt to win regulatory approval. Really, would a Hong Kong tribunal cause the losses of two thirds of well connected local investors money? They were just placeholders & fronts for QF, for which they willingly clipped the ticket. What is going to be interesting is to see how much of a loss Qantas actually recognizes when this failed venture is eventually liquidated. The question is where did Shun Tak and China Eastern actually get the capital from? Was is ultimately a loan from QF? This will likely to be the first snapshot into the true extent of QF's liabilities in the Asian Franchise experiments. My guess is close to 100%. |
FYSTI,
From our daily dose of propaganda: Qantas has a one third share in Jetstar Hong Kong (along with China Eastern Airlines and Shun Tak Holdings) and our total current exposure is $10 million. |
There will be some disappointed pilots scattered around Asia. The Jetstar HK paychecks about to stop. Was good while it lasted.
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Why don't they just park it in Taiwan? I'm sure the Taiwanese would be willing to give the finger to the mainland. Taiwan is a large market in its own right. You could also have all the connections going through Hong Kong anyway.....
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Regarding the book, conspiracy theories aside I doubt I would want to read a book showcasing....
a study of your leadership Alan, and of Olivia's exhilarating command of the communications strategy during one of Australia's biggest corporate crises |
Bloomberg Business
Qantas lost A$50 million on its investments in Jetstar Hong Kong and Jetstar Japan in the year ended June 2013 and a further A$70 million in the year ended June 2014, the company said in its annual results last year. It didn't break down how much of the losses were a sttributed to each unit. |
Yes, but think about this book issue. A consultant plays in the inner circle kindergarten and then something happens that makes her go rogue whilst she has a well established gig that goes right to the top?
Something serious has happened or she has been cut loose. Either way, they will fight like a lioness protecting her cubs to keep her silent but it does raise the more important question as to what is behind all of this and there is no way they can keep the door shut forever. |
Self induced Implosion :) It's all falling apart. :D
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It's all in the sewer now, not even the bloody staff bus is running on time anymore!
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Be very, very, very, very careful what you wish for. With layer upon layer of management that have lost direction, and a board who seem quite happy with their performance, then where to from now? Just maybe the company needs to be destroyed and rebuilt to its former glory in order to maintain an aviation industry in this country for our future generations. Some of us have had our jobs threatened, or taken away from us enough not to care about the threat anymore. Personally I am over that. If this is what needs to happen to rebuild a better business then so be it. If these guys are running scared to save their own asses from litigation then release the damn book I say!! |
AJ will be picking up the soap in Long Bay for a few years. |
The Bullwinkle,
Hahahahaha! That's a good one. Love it. :D:ok::D:ok::D:ok: |
While we are at it;
Qantas to pump more funds into Jetstar Japan Qantas to pump more funds into Jetstar Japan Qantas Airways is poised to inject another ¥2 billion ($21 million) into the loss-making Jetstar Japan joint venture in 2015 as it looks to build a large, low-cost carrier business in Asia despite last week's rejection of Jetstar Hong Kong by regulators in that country. Qantas and partner Japan Airlines (JAL) agreed in November 2014 on an ¥11 billion cash injection in two tranches for an expansion of Jetstar Japan's domestic and international operations, with the first tranche accounting for ¥7 billion, but at the time it did not reveal when the second tranche would be released. A Jetstar spokesman said Qantas would make the second tranche of the equity investment in 2015. A JAL spokesman said the timing of the Japanese carrier's release of the second tranche would be decided according to Jetstar Japan's management plan and cash condition. Despite industry speculation that JAL was less willing than Qantas to keep funding the loss-making venture if it needed cash beyond the next injection, the JAL spokesman said the Japanese carrier would continue to provide "necessary support" for the budget airline to have a stable business operation. "Regarding the low-cost carrier business model, we consider it will take several years to take root in Japan," the JAL spokesman said. An aviation industry source familiar with Jetstar Japan's business model estimated the carrier was burning through about ¥700 million a month and had about ¥4 billion left, not counting the expected top-up later in 2015. Qantas and JAL will have a 47.1 per cent economic interest in the venture once the second tranche is released, up from 46.7 per cent at present, having each contributed $160 million at current exchange rates since Jetstar Japan was formed in 2011. Stakes held by Mitsubishi Corporation and Century Tokyo Leasing have decreased over time as Qantas and JAL injected more funds. However, Qantas has only a one-third voting stake in the venture and is unable to move its holding beyond that level because of Japanese restrictions on foreign ownership of airlines. Faced delays Jetstar Japan lost ¥11.1 billion in the last financial year, when it faced delays opening a second base in Osaka, but Qantas said in the first half this year it reported an unknown but lesser loss than the same half the previous year despite a weaker Japanese yen and aggressive competitor pricing. In April it appointed long-serving Irish-born Jetstar executive Gerry Turner as the new chief executive after his predecessor Miyuki Suzuki left for Cisco Japan. Jetstar Japan has 20 aircraft and a 60 per cent share of the growing low-cost carrier market in Japan. In the first half, its yields, or returns from fares, rose by 11 per cent. JAL said in the first three quarters of the financial year Jetstar Japan's load factor had averaged 75 per cent. However, that is relatively low for a low-cost carrier reliant on cheap fares. Jetstar in Australia, which is a profitable business, had an average load factor of 82.9 per cent over the same period. The industry source said Jetstar Japan had also had difficulty raising utilisation beyond 10 hours a day to help improve its operating economics because most of the country's airports had curfews. Qantas' investments in Asia have proven mixed to date. Jetstar's Singapore and Vietnam arms have returned to profitability in recent months, while Jetstar Hong Kong was rejected last week by regulators three years after it applied for a licence to operate. Qantas has warned of the potential to take a $10 million impairment on its Jetstar Hong Kong investment. Jetstar Japan, however, is viewed by Jetstar Group chief executive Jayne Hrdlicka as the Asian vehicle with the most long-term growth potential because of the huge size of the Japanese market. Jetstar Japan flies to Hong Kong from Tokyo and Osaka, but it has yet to add any other international destinations. Under its dispatch maintenance model it would need to find a supplier certified by the Japan Civil Aviation Bureau (JCAB) at the destination, and the only other one within easy flying range is Taipei. However, it is understood Jetstar could, at a cost, work with a supplier to get them up to JCAB standards, so that should not limit its international expansion. |
Bullwinkle came up with a classic.
Tima9x seems to have been overcome with jealousy but managed to find what may turn out to be the better joke. Which is funnier?? Time will tell.... Is it just me or has anyone else noticed BGA and QF/J* constant references to 'huge' markets. Be they Japan, China, Asia maybe even Jet* Antarctica, the 'HUGE' markets are a constant theme. I wonder if Dear Leader had 'normal' stature whether Qantas would have lost the billions it had? Just an absent post-red thought bubble.... |
Hardly call it a classic:rolleyes:
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Which is funnier?? Time will tell Apart from that, things appear to be on the up for Q ... and J* still an amaaaaazing business keeping the roo on the red tails hopping! Jetstar HK debacle underlines perils of LCC franchising | Plane Talking I have had a few rides on QFI this year, all of the crews have been great, couldn't fault the service on all of them, so hats off to you all for keeping the show on the road.. |
International vs domestic
I have had a few rides on QFI this year, all of the crews have been great, couldn't fault the service on all of them, so hats off to you all for keeping the show on the road.. |
Yes, friendly staff the other day across the Pacific, but my wife did ask me why on the 14 hour 747 flight to SYD our 3 kids weren't given a kids pack, but on the SYD-MEL leg they were...? |
Alan's not happy now. A heap of flights were sold less than half price today
https://www.facebook.com/qfsecrets/p...4?notif_t=like |
Yes, friendly staff the other day across the Pacific, but my wife did ask me why on the 14 hour 747 flight to SYD our 3 kids weren't given a kids pack, but on the SYD-MEL leg they were...? |
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