Thursday, April 30, 2015

Qantas On The Cusp Of Operational Goals For Dreamliners

Alan Joyce, Qantas CEO left no guessing out of his words as he "strongly suggested", No more A-380 and he is getting ready for the 787's. They have an order window, they have operational goals and they have a business plan in place. There is a small check-list of to do's within its grasp within the next year.

CEO's speak in threes because they just do.

  • returning the international business to profitability
  • by paying down $1 billion in debt this year.
  • “And thirdly, the business case for the aircraft has to return its cost of capital,

The first is the efficiency of internal growth growing international in the region. It's a location, location , location thing. Australia should rule the region on the globe. New Zealand to East. Tahiti to the Northeast and finally all of South East Asia rising travel market is kicking Australia's Door down. Qantas can't biff it with those conditions     (you know it as the three thing).

Qantas is almost there paying down its billion in the hole. A few more monthly installments and the Billion is back at the bank. Its just a matter of a few more easy-peasy payments and the 787 are then ordered. The hard part is not squeezing the order trigger before its debt is gone. Being an adult airline is very difficult in these tempting times. Alan Joyce is the parent of Qantas, and he orders a few more months of sitting in the corner before Qantas can go shopping. 

Playing by the operational rules is hard to do, but the staff of Qantas has to play it if it  wants it pay for a  new 787. They must take an allowance cut here and there before going out in shinny new equipment. Did you see the American Airlines 787 in yesterday's blog? Its way better than any junker Qantas currently flies including the A-380. It's a really "sweet" aircraft as quoted from "Napoleon Dynamite" movie fame.

Resource: The Australian