QF fare increase

[Slats7]

http://www.asx.com.au/asxpdf/20110324/pdf/41xmncj5z1r48x.pdf

Looks as though this could be a regular occurance with the Oil price continuing to soar.

 

[anat0l]

What in good grief is wrong with going to your shareholders and saying, "Sorry folks, but you gotta understand we can't pay you this year, 'cos the world and its oil reserves has us gripped firmly by the balls?"


At least Joyce got one thing right. This is pretty much harking back to pre-GFC high fares, but this time we don't have the financial resilience nor capacity that we had then. So these increases will hurt really bad now.


Those alternative fuel technologies really should've got some extra attention when we had the time...

 

[oz_mark]

What in good grief is wrong with going to your shareholders and saying, "Sorry folks, but you gotta understand we can't pay you this year, 'cos the world and its oil reserves has us gripped firmly by the balls?"

Because that is not in the interests of shareholders. In any case, people are just going to have to get used to things going up in price.

Those alternative fuel technologies really should've got some extra attention when we had the time...

They are being worked on, but the only realistic alternatives for aircraft are some other form of liquid fuel.

 

[JohnK]

Luckily the are still sales and not much need to purchase these ever increasing airfares.

This is starting to be a joke. If the real cause of the increase is fuel prices then is the airfare going to drop immediately the fuels prices drop!

 

[odysseus]

This is starting to be a joke. If the real cause of the increase is fuel prices then is the airfare going to drop immediately the fuels prices drop!

Depends when you travel. If you're stuck in school holidays, it starts to look like the car trip is looking more desirable again. (Or else drop back to Tiger, as long as you don't have any necessary appointments...)

 

[Sifor]

With regards to fuel alternatives this might be of interest:

www.treehugger.com/files/2010/04/fa-18-super-hornet-fighter-jet-flies-50-50-biofuels-us-navy.php

Remove the ! in 'www' for the link to work (low post count..)

If a Rhino can fly on it surely a 737 can as well!

 

[ric_melb]

Well shareholders haven't had a dividend since April 2009, so Qantas do not have the option of asking them to take a cut in dividend, to fund fuel price increases.

 

[JohnK]

(Or else drop back to Tiger, as long as you don't have any necessary appointments...)

LOL! Does anyone fly without needing to be anywhere? Anyway luckily TT does not service my route.

Well shareholders haven't had a dividend since April 2009, so Qantas do not have the option of asking them to take a cut in dividend, to fund fuel price increases.

I have no issue with airfares increasing due to higher fuel prices but then fuel prices drop and airfares are not adjusted.

Are executives still getting bonuses? Perhaps they can adjust their salaries back to realistic levels and then shareholders can receive some dividends again....

 

[odysseus]

Are executives still getting bonuses? Perhaps they can adjust their salaries back to realistic levels and then shareholders can receive some dividends again....

I don't think their remuneration would be competitive with the market any more though... And then they might just up and go and you lose the stellar performance they have contributed over the past few periods!

(Well, that's how the argument goes anyway! )

 

[JohnK]

I don't think their remuneration would be competitive with the market any more though... And then they might just up and go and you lose the stellar performance they have contributed over the past few periods!

(Well, that's how the argument goes anyway! )

I am glad you have the in that post.

You can get rid of the whole QF middle management to top management and you would be doing QF a favour and may gain some of the respect of the QF workers at the coal face.

P.S I know keep mentioning executive salaries but these are definitely at obscene levels and everyone keeps mentioning that customer should be funding future QF profits through fare increases without looking at cutting down labour costs.