News for you Webzone, capital costs of a/c are capital costs and unless and airline (or any company for that matter) stops spending altogether, capital costs will always be part of the picture. Just because QAN did not purchase the 777's, it does not mean that they stopped spending. Airlines such as QAN have to continually invest in new a/c and new technology on a regular basis and they do. If they did not spend the money on 777's, they spent it on other purchases such as the A380, so either way, they have still spent money purchasing new aircraft. This issue of capital expenditure is separate to the issue of fuel costs to an airline.
BTW, I am not against the A380 being in the QAN fleet, I think it is essential to have a few in the fleet and I think the QAN mix of 20 A380's (when they all come online) is about right.I travelled on the A380 the other day and it is indeed very nice to travel on.
I think you may have misunderstood my post re fuel savings. As we are comparing 777's to 747's, A380's, we are obviously talking about QAN international operations as the A380 and 747 do not fly domestically (with the exception of a daily 747 to Perth, which is soon to be replaced by an A330. The potential fuel savings of $450m pa that I alluded to were in regards to International operations, not domestic and not Jetstar.
The figure of $450m is an estimate from the Pilot's union. One thing pilots can do is Math, and their calculations stand up to any scrutiny.
FTR, what I am passionate about Webzone is my investment in QAN. You or any others cannot deny the FACT that the QAN SP has done nothing but nosedive since Mr. Joyce came on board. Investors have seen ZERO dividend returns, there is almost Zero staff engagement and the company has no idea what direction it is heading in IMO. If an executive management is in place and cannot turn a company around in 5 years, then I personally think they should go and that is my position. I would dearly love to see QAN once again become what it once was, a truly great airline and I think QAN would be best served if it focused on fixing the problems with long haul rather than rolling the dice on setting up in Asia with the hope it will turn things around.
One last thing, still waiting on your reply to tell us all exactly what good you think the current management have done for QAN and its shareholders. I am an open minded investor and would be interested to hear your pro management argument.
Surfrat.
QAN Price at posting:
$1.66 Sentiment: Hold Disclosure: Held
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