VA have a problem. Could this partly solve it ?

[Melburnian1]

These flights are not running empty at all. They were running 80% full in February, according to BITRE. Cargo is also fairly steady. I’m not sure VA would be making money but certainly not running “half empty” flights very often.

LAX services are also steady and tend to have higher yields.

If Hong Kong Airlines go belly up I could imagine VA seriously reconsider HKG but otherwise things will stay as they are imo.

I have just analysed BITRE's April 2019 figures. Bearing in mind Easter was in April, VA's load figures on its HKG routes were indeed just above 80 per cent:

BITRE international aviation statistics April 2019

BITRE's April 2019 international passenger, freight and mail statistics for aviation show that Sydney Airport's market share was exactly 40 per cent for international passengers while Melbourne's continues to creep up, at 26.7 per cent. So with 66.7 per cent using one or the other, basically...

www.australianfrequentflyer.com.au

 

[Melburnian1]

AUstralia is heading into the biggest recession ever, but many under 45yo can't see it or don't even know what a recession is. eg. building game is stuffed, retail is stuffed, restaurants are stuffed & only ones surviving are hamburger joints. Many 1000's are losing their jobs everyday. Underemployment is growing.

And the rise in public sector employment (especially in Victoria) is way, way above what the private sector is doing. Some is related to infrastructure spending but a lot isn't. I agree most under 40 have no idea what a recession means.

ABS figures show there's been a large decline in restaurant/cafe/fast food spending.

 

[Melburnian1]

It may be a 'no brainer' to you, but of course you're not working for an airline, you're the armchair expert here

Airlines are hardly the most successful examples of businesses worldwide, so perhaps those who claim to be working for them might learn something from the likes of offshore171 rather than taking pot shots.

QF may be regarded favourably financially at present but in fairly recent times this wasn't always so. And VA's not exactly doing well when its cost of capital is taken into account, or its pathetic shareholder returns (negative.)

After all, presumably at the very least, offshore171 is a passenger, for whom many airline staff regrettably have contempt (listen to QF galley talk!) or who are not listened to.

When airlines like VA don't even realise that successful public transport needs a daily or better frequency, it shows just how much these people have to learn. Or when, as Terry McCrann said, QF annoys its most valuable passengers by increasing teh number of points required in higher classes of travel to redeem FF seats.

 

[ozfflyer]

Qantas domestic makes huge money. Doubt if Qantas Int making any at all, but profits/loss can easily be hidden in overall figures for group.

 

[pauly7]

Qantas domestic makes huge money. Doubt if Qantas Int making any at all, but profits/loss can easily be hidden in overall figures for group.

QF don’t ‘hide’ the figures of their divisions but I don’t see how this is relevant to the topic of suggestions on how Va can improve....?

 

[ozfflyer]

QF don’t ‘hide’ the figures of their divisions but I don’t see how this is relevant to the topic of suggestions on how Va can improve....?

it's very easy to put some of jetstars costs against qantas, eg. back office/accounting or some division that JQ doesn't have, but QF does work on. Hell there are dozen of multi-nationals who send profits to their marketing offices in SIN eg.

Know of tax lawyers who do nothing else.

 

[ozfflyer]

I have just analysed BITRE's April 2019 figures. Bearing in mind Easter was in April, VA's load figures on its HKG routes were indeed just above 80 per cent:

BITRE international aviation statistics April 2019

BITRE's April 2019 international passenger, freight and mail statistics for aviation show that Sydney Airport's market share was exactly 40 per cent for international passengers while Melbourne's continues to creep up, at 26.7 per cent. So with 66.7 per cent using one or the other, basically...

www.australianfrequentflyer.com.au

do BITRE figures include airline staff flying for very little(confirmed or subload) or those on other industry tickets such as ID100s, AD75's etc . ?

 

[OZDUCK]

it's very easy to put some of jetstars costs against qantas, eg. back office/accounting or some division that JQ doesn't have, but QF does work on. Hell there are dozen of multi-nationals who send profits to their marketing offices in SIN eg.

Know of tax lawyers who do nothing else.

Absolutely agree. However, there was a bit of justice recently in W.A. when BHP agreed to pay $250M (which will be put towards a new maternity hospital) to settle a dispute about mining royalties involving a Singapore 'marketing hub'. New King Edward maternity hospital reaps $250 million in funding from BHP after royalty fight

 

[ozfflyer]

Absolutely agree. However, there was a bit of justice recently in W.A. when BHP agreed to pay $250M (which will be put towards a new maternity hospital) to settle a dispute about mining royalties involving a Singapore 'marketing hub'. New King Edward maternity hospital reaps $250 million in funding from BHP after royalty fight

$250m ? Apple makes that in less than a week in OZ. With phones costing $4 to make in China.

 

[OZDUCK]

$250m ? Apple makes that in less than a week in OZ. With phones costing $4 to make in China.

Perfectly true but that $250m will at least probably cover a quarter of the cost of the new hospital and it is better in 'our' pockets than at BHP.

.'Transfer pricing' between company branches etc, like I am sure Apple uses is a fascinating/horrible thing to deal with from an enforcement point of view - I often ran across it in my later days in Customs. But we didn't have anywhere near the same problems the ATO has to deal with.