FJ makes a surprise profit during transition.

[markis10]

The Nadi-based airline, which is 46 per cent owned by Qantas, saw revenue increase from $F678.3m to $F690.6m as passenger numbers rose by almost 15,000.
But an underlying pre-tax profit of $9.5m was down on the previous period.
Chairman Nalin Patel blamed the fall in the underlying result on the floods in April last year, an ensuing cyclone in December as well as the cost of rebranding the airline and introducing its new Airbus A330s aircraft.
"Given that we initially expected to make a loss during this transition year, wherein we are exiting our older B747s and inducting our first-ever owned A330 wide-body aircraft, I'm quite pleased with our results for 2012-13," Mr Patel said.

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[docjames]

Sounds like a decent result. Congrats to FJ.

 

[Interlude]

It has often been said that QF is desparate to offload its holding in FJ....is that likely to still be the case now that FJ has had a couple of years of profit? How does the profit look in terms of "cost of investment", or whatever that favorite phrase of AJ's was when talking about the lack of return from QFi? Would hate to see FJ flights no longer crediting points and SCs to QF.

 

[samh004]

Was thinking similarly to Interlude. While they may not have any influence over the board, it seems that influence may not have been the best thing anyway, and it would surely be silly to sell something that's doing well, unless they got more back from the sale I guess. But, seems like a good investment suddenly.

 

[RooFlyer]

Any large corporation should be continuously reviewing its return on capital in various divisions and seeing if that capital can yield a better rate of return elsewhere. In the case of FJ, QF doesn't control how the investment performs, which is a pretty ghastly situation at any time.

With FJ there may be 'strategic' issues in play, but they wold want to be pretty major to tie the balance sheet up in what would not have been a pretty return, even now. Or else QF doesn't have any better place to put the dough, which may be nearer the truth.

 

[cmon0005]

One thing with FJ/QF though is I am sure qf sell more qf codeshare seats (ex-au anyway) than fj does on its own metal.
This is just anecdotal based on my trips on FJ and seeing many QF tickets in hand at check-in.
QF (in my opinion) would be silly to drop its investment in FJ.

 

[Isochronous]

Wonder which routes are most profitable for it - NAN-HKG perhaps? Cab driver in Nadi told me there is a new 6-star casino resort being built catering purely to the Chinese market. Korean Air also fly there now.

 

[cmon0005]

Wonder which routes are most profitable for it - NAN-HKG perhaps? Cab driver in Nadi told me there is a new 6-star casino resort being built catering purely to the Chinese market. Korean Air also fly there now.

I doubt NAN-HKG as its quite infrequent (though I suspect this route will rise over time), my guess is SYD-NAN and AKL-NAN would be most profitable (maybe even LAX-NAN).

 

[markis10]

I doubt NAN-HKG as its quite infrequent (though I suspect this route will rise over time), my guess is SYD-NAN and AKL-NAN would be most profitable (maybe even LAX-NAN).

I would not be surprised if LAX is most profitable as they dont have an competition on the route IIRC.