'Qantas wil be dead in 6 mon':Ctr for Asia-Pacific Aviation
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Originally posted by angel7030:
The Down Under War of the Airlines continues. Virgin Australia and Delta Airlines have announced an interline partnership that will enable travelers to "travel on a single ticket on the two airlines between Australia and the US." What we think this means (and correct us if we're wrong) is that you can fly Virgin from Oz to Los Angeles and then hop on a Delta flight from LA to anywhere else in the US. You get one ticket and your luggage is checked all the way through to your final destination.
The Down Under War has well and truly started. We're talking the war on flights from the United States down to Australia, a market that's got boiling hot since V Australia threw its hat in the ring. And Delta is just a few months away from starting their own cheap flights to Sydney.
Likely-to-lose airline Qantas, which has happily served these routes at regular prices for decades, has really thrown down the gauntlet this week.
They're now offering $299 one-way flights between Los Angeles and various Australian and New Zealand destinations, and with taxes that means you can get a return flight for as low as $676 with nearly all departure dates through to October 24 eligible for the special--if you book by March 20.
For these prices, we'd be going back to Qantas--after all. Actually, VAustralia not only offers free in-flight entertainment, but during the inaugural, movies were free. Yup, we watched Slumdog Millionaire for free. Furthermore, VA is offering a bunch of Australian wines. So who will win us over in the end? We'd be tempted by anyone offering sub-$500 round-trips from the US to Oz.
Qantas is not only getting the heat from an international point of view, but even local domestic competition is going to kill them if they still dunno who moved their cheese? Well, goodbye Qantas.
IMHO what Delta and V Australia is doing is a JV, and profit sharing. Qantas will feel the pain. Big time.
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Interestingly, Qantas had a return on equity of 16.9% for FY2008, while SIA had 13.6%.
It's more profitable to run your company on debt rather than equity. Seriously....
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Originally posted by wilhelm:
Interestingly, Qantas had a return on equity of 16.9% for FY2008, while SIA had 13.6%.
It's more profitable to run your company on debt rather than equity. Seriously....
But you must understand. SQ is the biggest airline in the world based on market value. Its brand name is second to none. Qantas' brand name? With their puke eww green seats in economy even on their new A380 designed by "local and original Aussies", even Aussies prefer flying SQ/Thai to Asia rather than their national airline. This is even more so for those pax flying up front(aka Biz and First class pax). SQ's inflight product is way better than theirs. Period. They can't beat SQ in any way. Unless you consider the local Aussie culture being a plus point. I don't.
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Debt and no debt companies.
Which one does lionnoisy prefer?
No Debt:
Equity: $100,000 (100 shares)
Debt: $0
EBITA: $10,000
Less interest: $0
Net Income: $10,000
Taxes @ 20%: ($2,000)
Profit for the year: $8,000
EPS: $8,000 / 100 shares = $80
Debt:
Equity: $50,000 (50 shares)
Debt: $50,000 (Interest @ 7%)
EBITA: $10,000
Less interest: ($3,500)
Net income: $6,500
Taxes @ 20%: ($1,300)
Profit for the year: $5,200
EPS: $5,200 / 50 shares = $104
**I am not a finance or accounting student, so please forgive my terminology.
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Originally posted by wilhelm:
Interestingly, Qantas had a return on equity of 16.9% for FY2008, while SIA had 13.6%.
It's more profitable to run your company on debt rather than equity. Seriously....
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Australia will still continue to thrive whether Qantas fails or not.. Go to hell Lionoisy. Their whole continent is rich in natural resources and they can feed their people with just selling grapes, crops, gold mining ect.
They dont need qantas. Australia will still go on.
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Originally posted by Worldlybusinessman:
Australia will still continue to thrive whether Qantas fails or not.. Go to hell Lionoisy. Their whole continent is rich in natural resources and they can feed their people with just selling grapes, crops, gold mining ect.
They dont need qantas. Australia will still go on.
Yup. But as long Auz continues its protectionist policy towards Qantas, and if Qantas gets to the point of no return(e.g Alitalia of Italy and Sabena of Brussels), their entire Auz to Europe traffic would be screwed. And that is the major traffic flow. In any economy without a good transportation mode, the economy wouldn't do well.
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Originally posted by Worldlybusinessman:
Australia will still continue to thrive whether Qantas fails or not.. Go to hell Lionoisy. Their whole continent is rich in natural resources and they can feed their people with just selling grapes, crops, gold mining ect.
They dont need qantas. Australia will still go on.
Qantas dare not to say anything on this 6 months to die article!!
http://www.qantas.com.au/regions/dyn/au/publicaffairs/introduction?ArticleID=paf_curr_intro
2.are u sure oz is resourceful any more?
i read in last one or two year that eevry few days,there is one farmer in oz
kill himself.I read in this National Geo article that a wife have to check her husband
every few hours to make sure he does not do the stupid thing.
Now i believe the article......
Rice production drops from 1,000,000 tons to abt 25,000 yes 25,000
tons or twenty five thousand tons!!curerent oz generations have to pay the prices for
their forefathers cutting down 1.5 billions of trees!!
http://www.anra.gov.au/topics/publications/final-report/land.html
http://ngm.typepad.com/blog_central/2009/03/australian-drought-takes-its-toll.html
''When I read Robert Draper’s “Australia’s Dry Run” and look at Amy Toensing’s photographs in this month’s issue, I’m reminded of that day three decades ago when I was young and didn’t understand the potential consequences of bulldozers.''
''Australian Drought Takes Its TollPosted Mar 16,2009Samantha (at left) and Natalie Turner sweep sludge from a trough on their family’s drought-stricken farm in New South Wales, Australia.''
http://ngm.nationalgeographic.com/2009/04/murray-darling/toensing-photography
''"It hurts," says Frank Eddy, to destroy his own healthy peach trees, but the drought and reduced allocations have forced him to cull thousands of older trees on his orchards near Shepparton, Victoria.''''Stressed farmers in the rice-growing town of Coleambally meet to discuss slashed water allocations, which caused a 98 percent drop in rice production from 2006 to 2008. "The meeting was a bit scary," says 74-year-old Frank Whelan (at center), who didn't plant a crop for the first time in more than 50 years.''
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Originally posted by Fryderyk HPH:
Yup. But as long Auz continues its protectionist policy towards Qantas, and if Qantas gets to the point of no return(e.g Alitalia of Italy and Sabena of Brussels), their entire Auz to Europe traffic would be screwed. And that is the major traffic flow. In any economy without a good transportation mode, the economy wouldn't do well.
oz tourism industry complaint that oz monopoly the oz--USA route
hurting oz tourism......
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Originally posted by lionnoisy:
oz tourism industry complaint that oz monopoly the oz--USA route
hurting oz tourism......
Pretty ironic, what the OZ government is doing...