|Quoting Enobar (Reply 47):|
Ah you could be right. Ah well... its a least still a step in the right direction for them, even if not a huge one.
Absolutely good news, with the possibility of being raised back to investment grade within a year or 18 months.
"Standard & Poor's brightens outlook for Qantas credit rating
Qantas has received a boost to its credit rating outlook due to the end of a damaging capacity fight with Virgin Australia and the sharp decline in the oil price, but it is not expected to regain its prized investment-grade rating for at least another year."
Perhaps the most crucial (financial) thing Qantas could do - in p.r. terms - would be to declare a dividend, at which point many - but not all - of the recent negatives about Qantas/ AJ
would disappear. Already, we don't hear much negative talk about "lines in the sand" these days.
I doubt that AJ
will ever live down the grounding in the minds of some but to me AJ
was a force that had to happen - a bull in a china shop full of egos. The grounding was a defining action that dramatically changed the relationship with the unions - as long as AJ
is around. The moment AJ
leaves, whether that be sooner or later, I would expect some muscle flexing by the unions.
It will be most interesting to see what happens with the fleet, but given AJ
's oft-stated love affair with the 787, I assume some formal order is likely - if not necessarily carved in granite.
The aviation world has changed since the original 787 order and Qantas has changed and the aircraft types available have changed, especially with the variations of the A330. Personally, I don't see a place for the 748i in the fleet, unless Boeing offered a dozen aircraft at five quid each, and even then I'd raise an eyebrow.
Still, the 787 is the obvious front runner, but the financial commentators are expecting him to move quite conservatively, as in the linked article:
"Mr Ferguson said depending on market conditions, Qantas had the ability to cut capital spending by decelerating its fleet investment plans or conversely accelerating those plans. The airline will need to decide by the end of this year whether to exercise the first options over Boeing 787-9 aircraft. Mr Ferguson said if Qantas did expand its fleet, he believed the airline would do so in a "measured and conservative fashion."
All this is based on the profit numbers reaching expectations and some expectations are a bit unrealistic. We live in interesting times.