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Business Description: Qantas Airways Limited (QAN) main business is the transportation of passengers using two complementary airline brands - Qantas and Jetstar. QAN also operates other airlines, and businesses in specialist markets such as Q Catering.
Strategy Analysis: QAN's core strategy is to profitably grow its two flying brands, Qantas and low-cost Jetstar. Qantas will seek to strengthen its leading positions in premium markets. Jetstar will expand locally and into international leisure markets. QAN also has Freight and Frequent Flyer businesses. The longer term strategy for QAN is to restructure its international business in an attempt to eliminate mounting losses. The strategy laid out by the company is to reduce the capital intensity of the business by forging partnerships with carriers in certain sectors that are uneconomical. The proposed code sharing arrangement with British Airways on the European sector is one such example. The expansion of Jetstar in Asia will continue as that has been a big success story. Plans to introduce a premium service in Asia and l a new service in Japan are intriguing. QAN is also looking to take significant cost out of this business.
Qantas Airways reported NPAT of $111m for the half-year ended 31 December 2012. Revenues from ordinary activities were $8.24bn, up 2.4% from the same period last year. Qantas Loyalty delivered continued growth in members and member engagement. Jetstar further improved its industry leading ancillary revenues per passenger, on top of 12% growth in passenger numbers. Diluted EPS was 4.9 cents compared to 1.9 cents last year. Net operating cash flow was $780m compared to $823m last year. No dividend was declared.
Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 |
Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.
Carl Richards, director of investor education at the BAM Alliance 17/10/2014 |
â€śAs odd as it may sound, the sooner you start treating your investments like you treat life, the happier youâ€™ll be with the outcome.â€ť
William H. Gross, Janus Capital Group 16/10/2014 |
â€śFinancial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding â€śminusâ€ť 10 basis points.â€ť
CMC Markets 8/10/2014 |
Share market indices around the globe are breaking down. While analysts cast around for reasons, itâ€™s clear that a time factor is in play. Simply put, many investors â€śfeelâ€ť a correction is overdue. How low could it go?
The Age 19/12/2013 |
Ten Network's programming ambitions will be funded by a $200 million loan guaranteed by three of its billionaire owners, as the free-to-air broadcaster declared digital was the future and pointed to early signs that its switch to an older market demographic was working.
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