QF & Current Industrial Action

[rechoboam]

Building up goodwill and a customer base that will be there giving you returns when 6% wont be available from a bank, which is likely to be very soon! Too often a business will look at the value of business in a short time period, rather than the life time value of their business, and its that life time value that comes to the fore in difficult trading conditions.

OK I accept 6% is at the upper end for money in the bank (but not far if if you buy bank shares instead). But Qantas group as a whole have an EBIT of about 2%. 30-year T bonds are paying more than that. And there is NO yield from the international business. QF can focus on the goodwill and customer base and ignore "the value of business in a short time period" but it's a public company for heaven's sake. At some point buying the company to flog off the profitable bits will be an option that's impossible for other businesses to ignore.
EDIT: Cash has returned 3.8% over the last ten years in a low-inflation environment. However it would be good to understand what the "real" profit of the international QF business is.

 

[jb747]

Simsy, JB747 is on about 100% more than his counterparts flying the same A380 aircraft for other airlines around the globe.

Wow, how do you work that out? I quoted what I was paid quite a while ago, and it was nothing like the figures that various papers claim. I also happen to know that it is quite similar to two major A380 operators, both of whom have dramatically better tax regimes than Australia. Right now there are substantial numbers looking at one alternative....and some have already left. Given that the young blokes have virtually no avenues for promotion in the future, the current advice to any FO is to move sooner rather than later.

Most others have substantial bonus payments (QF never gives any), and also housing allowances. A 380 endorsement is quite a useful thing to have right now.

Something else you may care to consider is that QF crew structure on long flights is one Captain, one FO, and one or two SOs. Most other airlines would operate with additional Captains and FOs.

 

[dfcatch]

Wow, how do you work that out? I quoted what I was paid quite a while ago, and it was nothing like the figures that various papers claim. I also happen to know that it is quite similar to two major A380 operators, both of whom have dramatically better tax regimes than Australia. Right now there are substantial numbers looking at one alternative....and some have already left. Given that the young blokes have virtually no avenues for promotion in the future, the current advice to any FO is to move sooner rather than later.

Most others have substantial bonus payments (QF never gives any), and also housing allowances. A 380 endorsement is quite a useful thing to have right now.

Something else you may care to consider is that QF crew structure on long flights is one Captain, one FO, and one or two SOs. Most other airlines would operate with additional Captains and FOs.

JB - is this one reason why so many Aussie pilots go and fly for CX?

 

[jb747]

JB - is this one reason why so many Aussie pilots go and fly for CX?

It certainly was in the past, especially given that they had bases in Oz. They are no longer all that popular, and there's even been flow from them to QF.

Most people now are looking at the middle east. Massive recruitment and growth, and some really interesting route structures. If Emirates were to start a base in Oz, QF would have nobody left.