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qf789
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QF announces record profit for FY15/16

Tue Aug 23, 2016 10:50 pm

Qantas has announced their results for financial year 2015/2016 today

•Record underlying profit before tax: $1.53 billion, up 57%
•Record statutory profit before tax: $1.42 billion, up 80%
•Record results for Qantas Domestic, Qantas International, Jetstar Group, Qantas Loyalty
•Near-doubling of earnings per share: 49c, up 24c
•Return on invested capital: 23%, up 6.5 points
•Operating cash flow: $2.8 billion, up 38%
•Net free cash flow: $1.7 billion
•$500m shareholder return: fully-franked 7c per share ordinary dividend and onmarket share buy-back
•Additional cash bonus totalling $75 million for 25,000 non-executive employees
•Continued investment in aircraft cabins and wi-fi

http://www.qantasnewsroom.com.au/media- ... sult-2016/

Great result for QF
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TC957
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Re: QF announces record profit for FY15/16

Tue Aug 23, 2016 11:00 pm

What ? An airline making great money by have A380's in their fleet and not dozens of 77W's ??
That'll upset a few on here....
 
An767
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Re: QF announces record profit for FY15/16

Tue Aug 23, 2016 11:00 pm

No mention of further 787's in the statement as expected

Great result for the big red roo, wonder how the guys at Virgin are feeling , wondering what they have to do

AN767
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log0008
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Re: QF announces record profit for FY15/16

Tue Aug 23, 2016 11:17 pm

Finally a profit for Jetstar's Asia's adventures with the first full year profit for Jetstar Japan.
 
DeltaB717
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Re: QF announces record profit for FY15/16

Tue Aug 23, 2016 11:33 pm

An767 wrote:
No mention of further 787's in the statement as expected


I wouldn't expect an announcement of further 787s at this early stage. As yet, we are still to see a definitive configuration, routes, etc for the current order. I, personally, would expect any further order would be announced around this time next year at the earliest, or perhaps at the mid-FY2017/18 results conference.

Today's announcement is great news for QF though, huge well done to them!

TC957 wrote:
What ? An airline making great money by have A380's in their fleet and not dozens of 77W's ??
That'll upset a few on here....


Haha, won't it though!!
 
Sydscott
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Re: QF announces record profit for FY15/16

Tue Aug 23, 2016 11:48 pm

log0008 wrote:
Finally a profit for Jetstar's Asia's adventures with the first full year profit for Jetstar Japan.


I'm more excited by the fact that Jetstar Japan is getting 8 more A320's at the same time that Jetstar Pacific is doubling it's fleet out to 2020 to 30 A320's and probably more. That's great news for Jetstar in Asia.

Also interesting that Jetstar Australia is getting 2 more A321's on operating lease. I was actually wondering when they would add more A321's to the fleet as it makes sense that as QF contracts the A332 flying from domestic and puts it into Asia that JQ might need some slightly larger aircraft to operate domestically to backfill some of that capacity.
 
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Re: QF announces record profit for FY15/16

Tue Aug 23, 2016 11:50 pm

Great result. Though id like to see the forecasts for the next few years and see what they look like too. After the last record profit back in the mid 2000s, results slumped back quite a bit.
 
log0008
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 12:06 am

Sydscott wrote:
log0008 wrote:
Finally a profit for Jetstar's Asia's adventures with the first full year profit for Jetstar Japan.


I'm more excited by the fact that Jetstar Japan is getting 8 more A320's at the same time that Jetstar Pacific is doubling it's fleet out to 2020 to 30 A320's and probably more. That's great news for Jetstar in Asia.

Also interesting that Jetstar Australia is getting 2 more A321's on operating lease. I was actually wondering when they would add more A321's to the fleet as it makes sense that as QF contracts the A332 flying from domestic and puts it into Asia that JQ might need some slightly larger aircraft to operate domestically to backfill some of that capacity.


I did not know Jetstar Australia was getting 2 more A321's but that's good news.

Jetstar has the highest Operating margin, overtaking Qantas domestic so I wonder if they are looking at any more 787's or expanding domestically in Australia.
 
n729pa
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 7:03 am

Well done Qantas!

Really pleased about this when I read it on the BBC Business News this morning. I had a grin at the thought of all the armchair CEOs Qantas have on here.

Personally as a QF FF, I love flying with Qantas. After flying around Europe with some average carriers, it's always a pleasure to fly on QF from the moment I board the flight in LHR. The staff and service are faultless, and in a time when other carriers are posting big loses etc., its good to see the hard work everyone has put in, is paying off. Great result.
 
zkncj
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 7:11 am

Sydscott wrote:
Also interesting that Jetstar Australia is getting 2 more A321's on operating lease. I was actually wondering when they would add more A321's to the fleet as it makes sense that as QF contracts the A332 flying from domestic and puts it into Asia that JQ might need some slightly larger aircraft to operate domestically to backfill some of that capacity.


Maybe they are for use on the Tasman? they have recently been using 788s on AKL-MEL/AKL-SYD in busy periods. NZ is currently owning JQ capacity wise on the Tasman, could be a good way to fight back against NZ's 777 services.
 
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 9:15 am

zkncj wrote:
Sydscott wrote:
Also interesting that Jetstar Australia is getting 2 more A321's on operating lease. I was actually wondering when they would add more A321's to the fleet as it makes sense that as QF contracts the A332 flying from domestic and puts it into Asia that JQ might need some slightly larger aircraft to operate domestically to backfill some of that capacity.


Maybe they are for use on the Tasman? they have recently been using 788s on AKL-MEL/AKL-SYD in busy periods. NZ is currently owning JQ capacity wise on the Tasman, could be a good way to fight back against NZ's 777 services.


As a group QF / JQ have EK A380's to compete against the NZ 777. So while there might be some peak usage of the A321's I'd say they are primarily for Australian domestic consumption.
 
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zkojq
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 9:16 am

An absolutely stunning result for the big Q. The airline is in better shape than ever. In particular, its great to see how well International is doing, given that it was on its knees only a few years ago.

TC957 wrote:
What ? An airline making great money by have A380's in their fleet and not dozens of 77W's ??
That'll upset a few on here....

Indeed. I'd expect a bit of saltiness from those who don't appreciate the heavy lifting that the Airbuses do in Qantas's long haul fleet.
First to fly the 787-9
 
Nouflyer
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 10:01 am

Is this remarkable?

Isn't Air NZ expecting to reveal a profit of around $600 million on Friday?
 
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mariner
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 10:11 am

Nouflyer wrote:
Is this remarkable?

Isn't Air NZ expecting to reveal a profit of around $600 million on Friday?


Given where Qantas was then yes, it is remarkable, if only as perception. The calls for Alan Joyce's head on a platter have been completely forgotten, even by those who demanded it. LOL.

Air NZ has a more consistent record of profit, and while that $600 million profit is also remarkable but (a) it hasn't been announced yet and (b) the contrast is less spectacular.

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par13del
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 12:11 pm

I guess it goes to show how short memories we have, as stated a little over a year or so ago Qantas was loosing money hands over fist, labour troubles, etc etc etc, Air NZ just continued on their merry way with solid management and predictable returns to investors.
We are a gambling society, so its much better to ride the roller coaster versus the flat train.

In any event, I need to spend more time on the details, we know expenses were cut, some capacity reduction and the price of oil fell, how much of the gains today are the result of structural changes versus the price of oil will be seen if the strength of airline in the next 12 to 24 months.
 
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 1:26 pm

It is a fine result that they can be proud of. It is important to put this in context though, it takes one bad year and the good work is undone - that is the universal truth of aviation, but what this continuation of profitability does allow them is a buffer, to be more proactive against competition and replace the dead wood faster.

VA seems to be run by a bunch a poo throwing chimps given the results the airlines they are surrounded by are posting in the same economic environment. They on the other hand should be embarrassed; having not posted any meaningful results for the better part of a decade and they need to make big changes at the top before they end up folding.
Flown to 147 Airports in 62 Countries on 83 Operators and counting. Wanderlust is like Syphilis, once you have the itch it's too late for treatment.
 
AirbusA322
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 2:22 pm

log0008 wrote:
Finally a profit for Jetstar's Asia's adventures with the first full year profit for Jetstar Japan.

You find me numbers to back that up otherwise it means nothing.

They are severely unprofitable in Asia, especially in Singapore.

The 787 operation has a question mark over it.
 
ZKCIF
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 2:37 pm

Well, the next question is about their orders in the nearest future...
 
sealand
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 2:46 pm

AirbusA322 wrote:
log0008 wrote:
Finally a profit for Jetstar's Asia's adventures with the first full year profit for Jetstar Japan.

You find me numbers to back that up otherwise it means nothing.

They are severely unprofitable in Asia, especially in Singapore.

The 787 operation has a question mark over it.

You find me numbers to back that up otherwise it means nothing.
 
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AirlineCritic
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 3:26 pm

Nice result, congratulations. Can someone help me understand how they turned around their previously bad results. And how much of this is external market factors and how much their better own performance?
 
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 3:54 pm

An767 wrote:
No mention of further 787's in the statement as expected

AN767


But 787's were mentioned here:

http://washpost.bloomberg.com/Story?doc ... 04OEAIRNB8
 
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tistpaa727
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 3:54 pm

An767 wrote:
No mention of further 787's in the statement as expected


AN767


Joyce is quoted in this Bloomberg piece saying they first want to see how the 787 performs in their fleet and that he would "like to" take the options they have.

http://www.bloomberg.com/news/articles/2016-08-24/cool-on-a380-rejuvenated-qantas-eyes-more-boeing-dreamliners

Also states the A380s they have fit their needs and see no need for more. Sounds like they've hit the sweet spot (for QF at least) on the number in the fleet and destinations served.
Don't sweat the little things.
 
n729pa
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 4:15 pm

I had an email from QF today, and it advises that flights on QF 787s will be on sale by Christmas this year.

I quote....

Qantas today announced a record full year financial result. We couldn't have achieved this without our loyal members, so thank you for your support.

Our financial performance puts us in a strong position to keep investing in our product and service, and rewarding your loyalty. Some of the initiatives we announced today are:

Designing the Dreamliner experience: Qantas is working with a team of world-class designers and sleep experts to design the 787-9 Dreamliner interiors in Economy, Premium Economy and Business to best-in-class standards. We'll be announcing more detail soon.

First flights on sale: The first Qantas Dreamliner flights will be on sale by Christmas this year, ahead of this aircraft entering service in late 2017. We'll be unveiling parts of the Dreamliner network soon.

Expanding Wi-Fi: We're in the final stages of scoping options to ultimately extend Wi-Fi to our QantasLink and Qantas International fleets. We want to deliver a better service level than what's commonly available, so we're investing the time to deliver a product you will really enjoy.

Domestic Wi-Fi rollout: We're prioritising the rollout of fast, free Wi-Fi to Qantas Domestic, which starts with a trial on a single aircraft at the end of this year and will feature on our B737 and A330 fleet from early 2017. To demonstrate its potential, Qantas is exploring a partnership with Cricket Australia to live-stream cricket over summer 2016-17 on the aircraft involved in the Wi-Fi technology trial.
 
usflyer123
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 5:04 pm

did Virgin Australia had a good year too?
for most people the sky is the limit. for those who love aviation, the sky is home...
 
zkncj
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 7:18 pm

Sydscott wrote:
As a group QF / JQ have EK A380's to compete against the NZ 777. So while there might be some peak usage of the A321's I'd say they are primarily for Australian domestic consumption.


EK's A380 services depart early am -ex SYD,BNE,MEL which are usually any good for traffic returning to AKL. For example NZ operates an 772/789 most days on the 6.30pm services ex SYD/MEL often these flights are 95-100% full.
 
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aerorobnz
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 10:51 pm

usflyer123 wrote:
did Virgin Australia had a good year too?


They broke records alright... $224.7 million loss.... That indicates to me either the next one will be good (a la Alan Joyce turnaround - write everything off one year so it doesn't show next year) or the company should seriously fire the entire BoD. and start again
Flown to 147 Airports in 62 Countries on 83 Operators and counting. Wanderlust is like Syphilis, once you have the itch it's too late for treatment.
 
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Erebus
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Re: QF announces record profit for FY15/16

Wed Aug 24, 2016 11:47 pm

TC957 wrote:
What ? An airline making great money by have A380's in their fleet and not dozens of 77W's ??
That'll upset a few on here....


It's funny how their closest rival who uses just A332s and 77Ws for widebodies posted a loss this year.
 
Sydscott
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Re: QF announces record profit for FY15/16

Thu Aug 25, 2016 10:51 pm

sealand wrote:
AirbusA322 wrote:
log0008 wrote:
Finally a profit for Jetstar's Asia's adventures with the first full year profit for Jetstar Japan.

You find me numbers to back that up otherwise it means nothing.

They are severely unprofitable in Asia, especially in Singapore.

The 787 operation has a question mark over it.

You find me numbers to back that up otherwise it means nothing.


Here are some numbers from Jetstar Japan at least:

http://centreforaviation.com/files/anal ... 50/15%20(6).pdf

http://centreforaviation.com/news/jetst ... ans-588444

So if you'd like to present some evidence of Jetstar being "severely unprofitable" in Asia now would be the time.
 
Qantas16
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Re: QF announces record profit for FY15/16

Thu Aug 25, 2016 11:49 pm

Sydscott wrote:
sealand wrote:
AirbusA322 wrote:
You find me numbers to back that up otherwise it means nothing.

They are severely unprofitable in Asia, especially in Singapore.

The 787 operation has a question mark over it.

You find me numbers to back that up otherwise it means nothing.


Here are some numbers from Jetstar Japan at least:

http://centreforaviation.com/files/anal ... 50/15%20(6).pdf

http://centreforaviation.com/news/jetst ... ans-588444

So if you'd like to present some evidence of Jetstar being "severely unprofitable" in Asia now would be the time.


Just wait for it ;) You seem to have forgotten the A.net wisdom that Jetstar has never been profitable and is subsidised by Qantas profits for X (Unknown) reason.
 
F9Animal
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 1:01 am

Not too long ago, things were not looking very good. Well, blow me down! Everyone at QF should be darned proud of what these results are. I have a special place in my heart for this airline, even though I have never flown on them. When I worked for Boeing, I had the pleasure of working with QF staff during the assembly of aircraft destined to QF. Let me just say, they were some of the best customers I worked with. They are very serious, very proper, but so much fun to talk to.

Congrats to Qantas! I knew they would tighten up the belt, and bring this airline to the glory it has always been!
I Am A Different Animal!!
 
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RL777
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 1:34 am

It's nice to see QF posting some good numbers again, first flew them back in 2006 and have been impressed with their product and staff ever since. The A380s seem to have found a great niche in the fleet and the 787s should only help to strengthen the airlines network and profitability. I still think we will see the 779 at QF in some capacity as a true 744 replacement if they ever wish to expand, however with their current EK partnership they seem to have found a winning formula operating less flights and feeding Europe passengers through DXB.
 
travelhound
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:22 am

The good news is QANTAS are not projecting the same head winds that Air New Zealand, Singapore Airlines & Cathay Pacific recently reported in their end of year financial results.

The Australian market seems to be the heart of their business. With a weak local competitor and an economy that is still in positive territory, QF profits should be good for at least another year.

With Jetstar Japan, Pacific and Asia all reporting profits it is no wonder QF have these businesses back in expansion mode again.

If we consider a lot of the older Jetstar A320's will becoming of lease finance over the next couple of years, QANTAS generated free cash flows of $3.1 billion last financial year the waiting game may just play into QANTAS's hands. North Asia could well be a bright spot for Jetstar and the substantial growth of that business. Jetstar now accounts for approximately 25% of QANTAS revenues. This could quickly increase to 30-40% over the next five years.

Going forward the questions becomes where do QANTAS spend their money. I suspect we will be seeing orders for an additional twenty QF 787's and a small top up of Jetstar 787's. The A380's will have a cabin refresh, but other than that aircraft CAPEX will probably directed towards additional aircraft for Jetstar.

If we consider the A380's will be coming off finance in the 2018-2022 period there could be substantial opportunity to direct that money towards a new 777X fleet. This will develop over the next year or two. Exciting times for QANTAS and its employees.
 
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KarelXWB
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:33 am

travelhound wrote:
If we consider the A380's will be coming off finance in the 2018-2022 period there could be substantial opportunity to direct that money towards a new 777X fleet. This will develop over the next year or two. Exciting times for QANTAS and its employees.


Qantas already mentioned to operate the A380s until the late 2020's.
What we leave behind is not as important as how we've lived.
 
travelhound
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:41 am

KarelXWB wrote:
travelhound wrote:
If we consider the A380's will be coming off finance in the 2018-2022 period there could be substantial opportunity to direct that money towards a new 777X fleet. This will develop over the next year or two. Exciting times for QANTAS and its employees.


Qantas already mentioned to operate the A380s until the late 2020's.


QANTAS typically finance their aircraft over 10-12 year periods. As such QANTAS are committing CAPEX (in other words spending money) to pay for these aircraft over this period of time.

I suspect each aircraft costs around $19 million in finance charges per annum. This equates to $230m per year for the fleet of twelve aircraft. That will be a nice chunk of money to throw at another aircraft type.
 
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KarelXWB
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:43 am

Yet Qantas made it clear to operate the A380s much longer ("late 2020's"). They're not going to ditch the A380 fleet just after 12 years.
What we leave behind is not as important as how we've lived.
 
travelhound
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:51 am

KarelXWB wrote:
Yet Qantas made it clear to operate the A380s much longer ("late 2020's"). They're not going to ditch the A380 fleet just after 12 years.


I am not saying QANTAS will be ditching the aircraft. I am just saying they will have CA{EX to spend on other aircraft once the A380's are paid for.
 
ZK-NBT
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:52 am

KarelXWB wrote:
Yet Qantas made it clear to operate the A380s much longer ("late 2020's"). They're not going to ditch the A380 fleet just after 12 years.


Travelhound means I believe that QF typically pay an aircraft off over 10-12 years. He didn't say they were going to get rid of them in 2018/22. He said they will receive a cabin upgrade. Yet to be announced but if say he is right.

Then some money will be freed up to put towards a replacement down the track several years. AF typically operates their long haul aircraft for 20/23 years.
 
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KarelXWB
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:56 am

travelhound wrote:
KarelXWB wrote:
Yet Qantas made it clear to operate the A380s much longer ("late 2020's"). They're not going to ditch the A380 fleet just after 12 years.


I am not saying QANTAS will be ditching the aircraft. I am just saying they will have CA{EX to spend on other aircraft once the A380's are paid for.


I'm not fully understanding this. How do you continue operating an aircraft without spending additional money?
What we leave behind is not as important as how we've lived.
 
travelhound
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 10:14 am

KarelXWB wrote:
travelhound wrote:
KarelXWB wrote:
Yet Qantas made it clear to operate the A380s much longer ("late 2020's"). They're not going to ditch the A380 fleet just after 12 years.


I am not saying QANTAS will be ditching the aircraft. I am just saying they will have CA{EX to spend on other aircraft once the A380's are paid for.


I'm not fully understanding this. How do you continue operating an aircraft without spending additional money?


The CASA website (Australian civil aviation authority) shows all twelve QF A380's to be financed/owned through a QANTAS managed syndicate finance facility. These syndicates were put in place to purchase the aircraft from Airbus.

In referring to A380 CAPEX I am specifically referring to the syndicate finance facilities. I am not referring to other A380 related CAPEX such as engine and aircraft spare parts, interior upgrades, etc.

If I remember correctly the air frames are financed separately to the engines, APU's, interiors, etc, so as you say QANTAS will be using some of their CAPEX to keep these aircraft flying once the syndicate loans are paid out.
 
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PW100
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 3:15 pm

travelhound wrote:
I suspect each aircraft costs around $19 million in finance charges per annum. This equates to $230m per year for the fleet of twelve aircraft. That will be a nice chunk of money to throw at another aircraft type.


What makes you think that capex for "another aircraft type", would be lower per seat** than that of the A380 fleet?

You make it sound quite dramatic, $230m per year. I would be very surprised if that equivalent amount of seats** on 77X (or any other long range type) would come even close, let alone cheaper, in terms of capex.

** or better, sq area of cabin floor to accommodate for unbalanced seat densities


Rgds,
PW100
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travelhound
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 6:08 pm

PW100,

I am simply stating a matter of fact. Aircraft of all types are very expensive types of equipment. They need to be paid for.

The intent of my post was to create discussion about QANTAS aircraft CAPEX expenditure into the future. In 2022 or there about QF will be able to leverage the twelve paid for A380's to expand their international flying!
 
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PW100
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:22 pm

travelhound,

Fair enough. I took it as a bit of dig at the A380. Just wanted to show that capex will apply to all types, and that measured by seat, none of the current nor future available wide-bodies can beat the A380.

And just for the record, I'm not holding my breath on QF ordering more current generation A380s. Though I can see some benefit in them swapping out some of their older frames for new deliveries: the improved more payload-range capability could suit them well on LAX/SFO and especially DFW routes. Wasn't BA interested in some secondhand frames? And QF's are RR powered as well . . . too far fetched I guess.

KRgds,
PW100
Immigration officer: "What's the purpose of your visit to the USA?" Spotter: "Shooting airliners with my Canon!"
 
travelhound
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Re: QF announces record profit for FY15/16

Fri Aug 26, 2016 9:59 pm

At a guess QF pay a $190.00 financing cost for every passenger flown on an A380. Just think of the pricing power to stimulate demand once these aircraft are paid for.
 
Gemuser
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Re: QF announces record profit for FY15/16

Sat Aug 27, 2016 4:51 am

PW100 wrote:
travelhound,

Fair enough. I took it as a bit of dig at the A380. Just wanted to show that capex will apply to all types, and that measured by seat, none of the current nor future available wide-bodies can beat the A380.

And just for the record, I'm not holding my breath on QF ordering more current generation A380s. Though I can see some benefit in them swapping out some of their older frames for new deliveries: the improved more payload-range capability could suit them well on LAX/SFO and especially DFW routes.

I agree! Take the 8 on order and reconfigure the oldest 8 to 700 to 850 all Y seats, transfer them to JQ to start LAX services from SYD/MEL/BNE at rock bottom prices and watch the market explode! It need not take any premium [including Y+] traffic off QF if done properly. With no capex, except maybe for reconfiguration and JQ's cost structure they should make money hand over fist.

Gemuser
 
zkncj
Posts: 3814
Joined: Wed Nov 09, 2005 4:57 pm

Re: QF announces record profit for FY15/16

Sat Aug 27, 2016 5:11 am

Whats the chances of Qantas now making an order to replace the F100 fleet? with these aircraft approaching 20+ years old, surely they would have an max of say 5 years left in service?
 
Qantas16
Posts: 755
Joined: Tue Jul 19, 2016 3:51 am

Re: QF announces record profit for FY15/16

Sat Aug 27, 2016 5:11 am

Gemuser wrote:
PW100 wrote:
travelhound,

Fair enough. I took it as a bit of dig at the A380. Just wanted to show that capex will apply to all types, and that measured by seat, none of the current nor future available wide-bodies can beat the A380.

And just for the record, I'm not holding my breath on QF ordering more current generation A380s. Though I can see some benefit in them swapping out some of their older frames for new deliveries: the improved more payload-range capability could suit them well on LAX/SFO and especially DFW routes.

I agree! Take the 8 on order and reconfigure the oldest 8 to 700 to 850 all Y seats, transfer them to JQ to start LAX services from SYD/MEL/BNE at rock bottom prices and watch the market explode! It need not take any premium [including Y+] traffic off QF if done properly. With no capex, except maybe for reconfiguration and JQ's cost structure they should make money hand over fist.

Gemuser


I assume you're joking, but wouldn't that be amazing to watch? Would absolutely destroy NZ/VA/UA/DL/FJ on the Oz-USA market. I'm not sure if QF could realistically run a JQ 700 seat A380 + a QF A380 though, not everyday on the same route. Maybe a F/J/W only 789 and then an all-Y JQ A380.... Certainly nothing like that (to that scale) had been done before and would be interesting to see how the market reacts.
 
travelhound
Posts: 2008
Joined: Fri May 23, 2008 9:13 pm

Re: QF announces record profit for FY15/16

Sat Aug 27, 2016 6:18 am

Gemuser wrote:
PW100 wrote:
travelhound,

Fair enough. I took it as a bit of dig at the A380. Just wanted to show that capex will apply to all types, and that measured by seat, none of the current nor future available wide-bodies can beat the A380.

I agree! Take the 8 on order and reconfigure the oldest 8 to 700 to 850 all Y seats, transfer them to JQ to start LAX services from SYD/MEL/BNE at rock bottom prices and watch the market explode! It need not take any premium [including Y+] traffic off QF if done properly. With no capex, except maybe for reconfiguration and JQ's cost structure they should make money hand over fist.

Gemuser


I would rather see QANTAS increase its share of flights through DXB. From where I sit the EK/QF alliance would be better served if QANTAS passengers had more options to fly QANTAS planes wen booking their flights.

For example, if a QF passenger wants to fly to LHG from Brisbane their only choice is to fly EK direct or fly to Sydney so they can fly on a Red tail. Not too many real options.

From a JV standpoint this could increase the overall market share of the two airlines.
 
smi0006
Posts: 2548
Joined: Wed Jan 16, 2008 7:45 am

Re: QF announces record profit for FY15/16

Sat Aug 27, 2016 6:47 am

Does QF still own a percentage of FJ? How much, I wonder if they get a cut of their profits too. It's a shame to relationship is so sour, I think a greater degree of cooperation could benifit them both.
 
Gemuser
Posts: 5079
Joined: Mon Nov 24, 2003 12:07 pm

Re: QF announces record profit for FY15/16

Sat Aug 27, 2016 8:19 am

Qantas16 wrote:
Gemuser wrote:
PW100 wrote:
travelhound,
I agree! Take the 8 on order and reconfigure the oldest 8 to 700 to 850 all Y seats, transfer them to JQ to start LAX services from SYD/MEL/BNE at rock bottom prices and watch the market explode! It need not take any premium [including Y+] traffic off QF if done properly. With no capex, except maybe for reconfiguration and JQ's cost structure they should make money hand over fist.
Gemuser

I assume you're joking, but wouldn't that be amazing to watch? Would absolutely destroy NZ/VA/UA/DL/FJ on the Oz-USA market. I'm not sure if QF could realistically run a JQ 700 seat A380 + a QF A380 though, not everyday on the same route. Maybe a F/J/W only 789 and then an all-Y JQ A380.... Certainly nothing like that (to that scale) had been done before and would be interesting to see how the market reacts.

I am NOT joking! IMHO it would be completely possible and would use the existing A380s to their full potential. There would be a need for VERY good product differentiation to prevent it cannibalising other QF services because the aim is to grow the market AND make a profit. A 700-850 seat A380 would be cramped sure but if made not too cramped and run on the ULCC principle I believe it would work. It would attract NO premium traffic, but that's the "out of the box" thinking IMHO the QF Group needs. Other differentiations could include a business unfriendly schedule, say arrival after it possible to check into your hotel (late afternoon?) and a departure a couple of hours after you have to vacate your hotel (lunch time?), not connection friendly, other things premium passengers want. It would be a pure tourist/VFR service, maybe extend it to LHR?
QF may have to make some adjustments as. Maybe drop Y and have Y+ as their base product at close to todays Y prices with the JQ service taking the bottom feeders. You can make money on them IF your costs are low enough and JQ AND the A380 should do that. Done properly I can see both a QF & JQ AQ380 from SYD/MEL daily, BNE maybe less than daily, maybe not.
Obviously there are aspects to this I have no information on and much would have to be worked out, but IMHO it could be done AND NOT damage the QF brand.

Gemuser
 
Gemuser
Posts: 5079
Joined: Mon Nov 24, 2003 12:07 pm

Re: QF announces record profit for FY15/16

Sat Aug 27, 2016 8:23 am

travelhound wrote:
]
I would rather see QANTAS increase its share of flights through DXB. From where I sit the EK/QF alliance would be better served if QANTAS passengers had more options to fly QANTAS planes wen booking their flights.

For example, if a QF passenger wants to fly to LHG from Brisbane their only choice is to fly EK direct or fly to Sydney so they can fly on a Red tail. Not too many real options.

From a JV standpoint this could increase the overall market share of the two airlines.

I don't disagree but that would be B789 territory, I don't see an ultra low cost service making it to Europe [except maybe via LAX] and I suspect it would be more profitable than just expanding B789 services, which will happen anyway.

Gemuser

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