QAN 1.18% $8.60 qantas airways limited

Will QAN survive?, page-214

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    That Pommy 'Financial Times' article seems to be paywalled.

    This morning the CEO is saying QAN 'may' get to 60 per cent of domestic flying by Christmas 2020 if more borders reopen.

    However, showing chaotic state governments at their worst, the WA Government yesterday told air passengers arriving in Perth from Adelaide that they'd have to quarantine as SA had three just announced virus cases. This was despite the WA Govt having said 'the border with SA is open'. Passengers were annoyed to put it mildly. This will act as a disincentive for Adelaide to Perth passengers, and a warning to others elsewhere not to visit WA as one may suddenly be hit with quarantine requirements.

    Mr Joyce also boasts about the 15 daily (perhaps fewer on Saturdays) Sydney - Melbourne or Melbourne - Sydney flights from 23 November 2020, but in the same breath admits that QAN used to have what he says was '45 each way'. From memory QAN publicised that its previous offering pre-COVID was 250 flights each way each week on this route, which when one does the maths is fewer than 45 a day. It was about 35-40 on weekdays and fewer on weekends, particularly Saturday afternoons that are pretty quiet.

    So this '15 a day' on the busiest route is a huge reduction from before this virus hit, and that's QAN's busiest route. Lots of Boeing 737-800 aircraft stabled at airports sitting idle still.

    Still no Melbourne or Sydney to Brisbane flights, respectively historically the third and second busiest domestic routes.

    And despite Mr Joyce's wishes, no New Zealand, Japanese, Taiwanese or other 'travel bubble' yet, so QAN can't begin flying to Japan or Taiwan, and the requirement for us to quarantine in NZ for 14 days is another disincentive to travel.

    Unfortunately with all these curbs and what seems to be the huge drop in demand for domestic air travel compared with a year ago, it's hard to see how QAN will be profitable any time soon.




    Last edited by Hopeful9: 16/11/20
 
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