Accounting Gimmicks At Etihad Airways

[codash1099]

Accounting Gimmicks And Hard Realities At Etihad Airways | HuffPost

And Qatar get a mention as well.

 

[serfty]

Hmmm the article is pushing a theme ... it could have been written by Delta's PR.

It does not mention the subsidies received by America's legacy carriers.

One of the things we’ve learned in recent years from waves of financial scandals is that you can’t fool the accountants. And it’s especially hard to trick forensic accountants, the professionals specifically trained to identify “cooked books.” It was thus not especially surprising that forensic accountants recently showed that the $103 million profit that Etihad Airways claimed for its 2015 fiscal year was actually an operating loss of $2.06 billion; worse, that result was after Etihad’s government owners kicked in $1.7 billion in subsidies. Those poor results followed an operating loss of $1.4 billion and subsidies of $2.6 billion in its 2014 fiscal year. ...

 

[cove]

It gets worse if you are flying lots of A380 planes (as SQ has some 10 year old ones ) that are proving hard to sell at a fair price.

 

[Melburnian1]

Hmmm the article is pushing a theme ... it could have been written by Delta's PR.

It does not mention the subsidies received by America's legacy carriers.

It is written as a propaganda piece, but to be fair, aren't the USA domiciled airlines largely at present making excellent profits?

The USA securities exchanges have some of the toughest disclosure statements of any worldwide. The way a company reports to its shareholders is far more detailed than in Australia, so in fairness to the USA carriers, it might be hard to pin 'distorted accounts' on them in the way that arguably one can with the so-called ME3.

The USA airlines are far from perfect, and have a poor reputation overall for passenger comfort (although some steps are occurring with new aircraft to partly change that perception) but they nonetheless have a point about huge government subsidies to the ME3.

QR in the recent past has been accused of treating cabin crew (particularly females) poorly.

 

[rock86]

Gotta love the huffington post.................

What the author fails too acknowledge in this piece is that while the airlines are making losses, it is building the ME into a massive transport hub. The respective governments don't really care about the airline losses at present, as they can see the growth of their respective city hubs and that is the long term goal.

They realise oil is finite and not going to be their golden ticket for much longer, so they're diversifying and know they're located in a great position to become the travel hubs of the world.

 

[rock86]

The USA securities exchanges have some of the toughest disclosure statements of any worldwide. The way a company reports to its shareholders is far more detailed than in Australia, so in fairness to the USA carriers, it might be hard to pin 'distorted accounts' on them in the way that arguably one can with the so-called ME3.

But they're not 'distorted accounts', and they're not even fudging the figures - where any government grants/subsidies are received they'll be treated as income per IAS and thus make up an operating profit. They'll also be included in the notes of the financial statements so if you're wanting to calculate an actual airline only operating position, it doesn't take a forensic accountant to do that.

 

[jetset]

The article reads like it has been ghost written by Delta or anther US carrier. It is pushing a thinly veiled agenda. If you follow the sources, it reveals that the report cited was issued by the 'Partnership for Open and Fair Skies', which represents American, Delta and United.

Hmm...

 

[Strategic Aviation]

Delta is leading this campaign, following previous efforts in 2015.

BoardingArea.com has critiqued it extensively - there are tons of articles particularly on Live and Let's Fly, One Mile at a Time and View from the Wing.

"Americans For Fair Skies" (different to the "Partnership for Open and Fair Skies") tried to go after OMAAT as a result. Hypocritical Lobbying Group Has A New Target: Me - One Mile at a Time

 

[Strategic Aviation]

And Qatar get a mention as well.

Speaking of Qatar, the "Partnership for Open and Fair Skies" has embarrassed itself further ...

'Partnership for Open and Fair Skies Responds to Qatar’s CEO “Man of the Year” Award'; CAPA replies

 

[Strategic Aviation]

Senate Tax Bill Contains a Stealth Attack on Emirates, Etihad, and Qatar - View from the Wing

 

[Strategic Aviation]

US-Qatar Agreement Even More Hollow Victory for US Carriers Than They Claimed - View from the Wing

Emirates and Etihad About to Settle Open Skies Dispute - View from the Wing

 

[dajop]

Government subsidies = bad (ME3)
Government purchasing restrictions = good (US3)
Government sanctioned collusion = good (US3/EU3)

Hmmm. It’s all a game and it all depend on you point of view.

 

[jb747]

The Americans are great believers in ‘open skies’. Of course, they mean your open skies, not theirs.

 

[rock86]

The Americans are great believers in ‘open skies’. Of course, they mean your open skies, not theirs.

This sums it up pretty well from my limited knowledge on the area. It seems the US3 wants the whole cake in regards to any market they get access to, but when it's about the US market the US3 only want foreign carriers to be able eat the crumbs off the floor (or starve).

 

[jb747]

Simple example. The US airlines have the right to pick up domestic passengers in Oz. They don’t do so at the moment, but nothing stops them. They ensure that HNL stops are never viable for QF by not allowing the same. Same applies to LAX/JFK.

 

[Standby]

Simple example. The US airlines have the right to pick up domestic passengers in Oz. They don’t do so at the moment, but nothing stops them. They ensure that HNL stops are never viable for QF by not allowing the same. Same applies to LAX/JFK.

I dont think that’s the case.Only QF,JQ use Dom legs of int flights to carry point to point Dom pax.VA could also.
The current discussions as part of the regional airlines various govt reviews have raised allowing foreign carriers the right to cabotage by carrying p2p Dom passengers .Currently they can carry Dom pax they bring into the country as per QFs LAX-JFK.Not surprisingly Aust carriers,rightly ,aren’t in favour of foreign carriers picking up Domestic punters

 

[jb747]

I said that they don’t....but they have the right to do so. They will never extend that right to anyone else though. My point is that the Americans are in general ‘one way swimmers’.

 

[cove]

Yes I have noticed that jb747. Rules are always in their favour.

 

[Franky]

I said that they don’t....but they have the right to do so. They will never extend that right to anyone else though. My point is that the Americans are in general ‘one way swimmers’.

'one way swimmers' - an old Navy saying from way back when JB!

 

[Strategic Aviation]

United States & United Arab Emirates Reach Deal On Open Skies - One Mile at a Time