Qantas FY14/15 F/Y Results [Dreamliner in 2017]

[Awesom Andy]

So they're taking 3 of the 787s that were originally destined for JQ... So JQi has run out of places to fly to?

 

[Red Roo]

I think this is the link you want https://www.youtube.com/watch?v=gw2LBy5K1iM Looks great.

This link might work better:
https://www.youtube.com/watch?v=gw2LBy5K1iM

Thanks, I've edited my post.

 

[Princess Fiona]

So they're taking 3 of the 787s that were originally destined for JQ... So JQi has run out of places to fly to?

One can but hope

 

[samh004]

When I heard the news report this morning and the figure $1.6 billion, I nearly spat my tea out... but I now understand that'd just the year over year difference!

Looking really good, can't wait to fly on a 787-9, but I wonder where they'll be flying? Would AKL give it the range to head to JFK direct?

Also, wonder if we're going to see a special livery for the first aircraft, a new Indigenous Art work?

...and return of capital to investors! Things really must be looking up!

When I read the info about this it gave the impression that it's less of a dividend and more of increasing the value of the shares by reducing the overall volume? That goes well over my head, but sounds like a smart idea.

 

[Mattg]

Really happy about today's results.
Will be sad to see the old 747's go but I guess it's well overdue.

I'm definitely bagging a seat (any seat) on the last 747 flight

As far as I can tell, they're still keeping the 6 -ERs after the 787s arrive.

 

[medhead]

When I read the info about this it gave the impression that it's less of a dividend and more of increasing the value of the shares by reducing the overall volume? That goes well over my head, but sounds like a smart idea.

Both a cash payment of 23 cents a share as a capital return. And a share consolidation, which usually works by converting X old shares into Y new shares, with Y being smaller than X.

Ignore the speculation below: As per the link below from Red Roo 100 old Qantas share should convert to 93.9 new shares plus $23.

The ratio to apply to the share consolidation is the volume weighted average sale price (VWAP) of Qantas shares over the consecutive 20 trading day period ending 18 August 2015, less the capital return as a proportion of the VWAP.
Based on this calculation, the consolidation ratio is 0.939 and, if approved, will reduce the number of shares on issue by approximately 6.1%.

[-]The wesfarmers consolidation a couple of years back worked out the old to new share ratio so that the capital return (50 cents) compensated for the lost shares.

How was the share consolidation rate determined?
The share consolidation ratio was calculated by referencing the amount of the return of capital as a proportion of the Wesfarmers 20 day volume weighted average price ended 13 August ($40.27):
0.9876 = (40.27 – 0.50) / 40.27.

Absolutely no idea how Qantas will do it. But using the wesfarmer calculation with a share price of $3.80, it would be a ~6% reduction in the number of share. 100 share going to 94 share plus $23. this is all pure speculation.[/-]

 

[Red Roo]

Some information for Shareholders: QANTAS ANNOUNCES $505 MILLION SHAREHOLDER DISTRIBUTION - Qantas News Room

 

[Brettmcg]

On the 789, I cannot see why some people are so happy to get 737 comfort on a long range aircraft. QF will go 3-3-3 in Y with 31in seat pitch without any doubt.

I know we have to take everything from Ben Sandilands with more than a grain of salt, but it appears AJ alluded to a 250-seat low-density configuration at this morning's press conference.

For those who might never fly in the confines of a Jetstar cabin Mr Joyce also disclosed a low seat count for the new fleet of 787-9s announced earlier this morning with its financial year to 30 June results.
The medium sized Boeing twin engined wide body will fly with only 250 seats, allowing it to exploit its long range characteristics in comparative comfort, although Mr Joyce didn’t give anything away as to the numbers of business, premium economy and economy seats that would contribute to that total, nor whether the rather horrible nine across seating some airlines have put in their Dreamliner Y class cabins would also appear in the Qantas version.

Qantas: Low seat count for 787s, high hopes for Jetstar | Plane Talking

 

[eminere]

I know we have to take everything from Ben Sandilands with more than a grain of salt, but it appears AJ alluded to a 250-seat low-density configuration at this morning's press conference.

How come, what's he like?

 

[MEL_Traveller]

How come, what's he like?

Some people just don't agree with what he says.

 

[RooFlyer]

<snip>

When I read the info about this it gave the impression that it's less of a dividend and more of increasing the value of the shares by reducing the overall volume? That goes well over my head, but sounds like a smart idea.

Capital return - I suspect the reason for this is that returning shareholder capital will reduce their overall Weighted Average Cost of Capital (WACC) - as equity is more expensive than debt - which is one of their (and most large corporations) major financial metrics.

Share consolidation. I haven't looked through the detailed mechanics, but it looks like its designed to put each share post consolidation in the same position as they were post capital return (eg EPS etc). As opposed to usual reason, where the consolidation is something like 2 becomes 1, which is used to simplify the register by having fewer shares on issue and it often has the 'unintended' consequence of squeezing a number of small shareholders out, who post consolidation would hold an unmarketable parcel and the company buy's 'em out. Farewell Mrs Bloggs! Each individual shareholder costs the company in admin etc.

 

[Ansett]

Good to see return to profit providing it is sustainable however I wonder how it would look with out the drop in fuel prices in the last 12 months.

787-9 for QF is good just hope they go 2-4-2 rather than the extremely tight 3-3-3 as per JQ.

What is the feeling re going ahead with more A380 aircraft in the next few years?

 

[Anna]

When is QF bringing back the ADL - SIN route?

 

[medhead]

When is QF bringing back the ADL - SIN route?

Isn't the answer never?

 

[teamhamsandwich]

Any chance they will upgrade the syd>pvg route planes?

 

[Awesom Andy]

A 250 seat config doesn't quite make sense. The 787-9 is roughly the same length as an A330-300, which fits almost 300 pax at the moment. Even if a chunk of Y seats are taken out and are replaced with Y+, we would still be looking at around 270 while maintaining a 2-4-2 config in the back. So either they're going to fit a a quite a few more J seats in, or it's possibly going to be a 4-class bird, especially if they consider 3-3-3 in the back.

I'm indifferent for a 3-3-3 in the back, keeping in mind that in a 2-4-2 config, pax will start losing empty seats next to them from about half full and there are 2 middle seats in each row, while the same doesn't happen with 3-3-3 until more than 2/3 full, with 3 middle seats in each row. Let's take a 80% load for example, (close to the 81.5% as stated in the presentation for QFi). Based on an evenly spread pax load, on 2-4-2, only 1 or 2 pax would have an empty seat next to them (depending on where exactly they sit), but on 3-3-3, at least 2 pax would have an empty seat next to them (unless some demented person decides to take the middle seat and leaving one empty seat for his/her own exclusive use). Quite a few rows would even have 4 pax who won't have anyone in the seat next to them.

 

[Awesom Andy]

When is QF bringing back the ADL - SIN route?

Isn't the answer never?

Not until the population of ADL grows by, well, at least 50%? It probably wouldn't work having a wide body on this route without substantial connections out the other side of it.

 

[mannej]

Any chance they will upgrade the syd>pvg route planes?

That is currently happening with the 330 refurb program at the moment.

 

[medhead]

A 250 seat config doesn't quite make sense. The 787-9 is roughly the same length as an A330-300, which fits almost 300 pax at the moment. Even if a chunk of Y seats are taken out and are replaced with Y+, we would still be looking at around 270 while maintaining a 2-4-2 config in the back. So either they're going to fit a a quite a few more J seats in, or it's possibly going to be a 4-class bird, especially if they consider 3-3-3 in the back.

I'm indifferent for a 3-3-3 in the back, keeping in mind that in a 2-4-2 config, pax will start losing empty seats next to them from about half full and there are 4 middle seats in each row, while the same doesn't happen with 3-3-3 until more than 2/3 full, with only 3 middle seats in each row. Let's take a 80% load for example, (close to the 81.5% as stated in the presentation for QFi). Based on an evenly spread pax load, on 2-4-2, only 1 or 2 pax would have an empty seat next to them (depending on where exactly they sit), but on 3-3-3, at least 2 pax would have an empty seat next to them (unless some demented person decides to take the middle seat and leaving one empty seat for his/her own exclusive use). Quite a few rows would even have 4 pax who won't have anyone in the seat next to them.

So you're counting window seats as middle seats in 2-4-2?
While a window would be my second choice, I'm not sure it is as bad as a middle seat.

 

[amaroo]

Kudos to management and board. Been a tough 6+ years however, they must be feeling good today!