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Sunday, 23 August 2015

Qantas bounced back with S$ 1 billion pre-tax profit

After a massive staff retrenchment exercise, severe cost cuttings, reduction of unprofitable routes, cancellation of aircraft orders and low fuel cost, Qantas is able to make a remarkable turnaround from a loss of A$2.8 billion in 2014 to a pre-tax profit of A$ 975 ( S$1 billion) in 2015.
What an achievement!

Will SIA follow in Qantas's footsteps? I mean the laying off of staff, adopt severe cost cutting measure etc  in order to stop its profit from declining any further?
My humble opinion is that SIA may adopt the Qantas "style" of doing things if the share price and profit is sliding further. It may not lay off thousands of staff but perhaps in the hundreds. SIA has already been cutting cost steeply and there is nothing more left to cut.

Let's see what happens in the coming months or a year from now.

Btw... American Airlines full year profit for 2014 was US$ 4.2 billion

10 comments:

Anonymous said...

I am sure with CEO Goh and a brilliant Board SIA will
do well in the next financial year.

Anonymous said...

A dynamic achievement! Who says that Australian workers do not meausure up to the mark? SIA Mgt ought to take a leaf from QANTAS.

Anonymous said...

For SQ to make a billion $$ it will have to
retrench all the choh bo lan staff incl the
crew.

Anonymous said...

Sack all cho bo lan crew will be a more appropriate action. Plus station security checks at airport clearance to nab those thiefs. This will cut down and save a lot of money lost through pilferage by crew.

Anonymous said...

Cut all unprofitable sectors and sack 2,000 cabin crew and 200 pilots.
Get rid of staff like S.See, Harry, Kassim and all the cho bo lan
managers and most likely SIA will make $1 bil the next financial year.

Anonymous said...

Before this immense pofit was achieved, QANTAS went through a massive reorganisation that inlculded, retrenchment, downsizing, staff and costs reduction. These measures were painful for some years but produced the desired results. SIA undertook similar measures but the airline's performance has been dismal and far from satisfactory. QANTAS ahare price had soared 200 per cent in the last two years.

Snowy Beagle said...

http://www.qantas.com.au/infodetail/about/investors/preliminaryFinalReport15.pdf

From this report, it can be seen (page 5) that the Qantas earnings from domestic routes is nearly twice that of the international (A$480M vs A$267).

This is an advantage of carriers like Qantas and Delta that have significant domestic markets.

Anonymous said...

Ok seriously. What are the real problems that SIA cannot soar (again)? How will sacking the cbl names help? What did crew steal??

Anonymous said...

A culture of fear, hate, with accountability applied only to the front line staff.
The only result is slow drowning, slow boiling like a frog in a pot over a fire.

The value that is SQ now is in the fixed assets such as aircraft, spares, and landing slots.
As a business, its going nowhere. You want to join an organisation with such prospects?

Anonymous said...

Look at Snowy Beagle's post. Australian accountants are so accurate. It may also be right for us to assume that The Budget carriers of Australia are also doing a great job in their inflight service. Jet Star is an example.