Aviation
Qantas profits fall by 17 per cent to $852 million, buyback scheme launched: Qantas financial results 2017
Qantas today reported an Underlying Profit Before Tax of $1,401 million and a Statutory Profit Before Tax of $1,181 million for the 12 months ended 30 June 2017.
The underlying result represents the second highest performance in Qantas’ 97 year history, down 8.6 per cent compared with last year’s record. It is slightly above the guidance range provided in early May this year, mainly due to strengthening of the Group’s domestic businesses. A drop in statutory profit before tax of $243 million reflects that the FY16 result included the gain on sale from the Sydney Domestic Terminal.
Overall, the FY17 performance shows the Qantas Group’s margin advantage over local and global competitors[1] , which has been underpinned by completion of its three year transformation program.
SUMMARY OF RESULT
In the domestic market, Qantas and Jetstar combined reached a record $865 million Underlying EBIT, making them again the two most profitable airlines in Australia with around 90 per cent of the total domestic profit pool.
Qantas International, which has faced high levels of capacity growth in the broader market, saw an improvement of conditions in the second half; it posted an Underlying EBIT of $327 million. Continued strength in its core markets helped the Jetstar Group deliver the second highest profit in its 13 years of operation.
Qantas Loyalty booked a record $369 million Underlying EBIT on a 4 per cent increase in revenue as it continued to diversify its earnings.
The Group met all the objectives of its financial framework, reporting a 12-month return on invested capital of 20.1 per cent. Another $470 million in transformation benefits were delivered, completing the three year program and outperforming the $2 billion target by $125 million.
The Qantas Transformation Program has underpinned these results and enabled the Group to outperform its key domestic and international competitors.
This performance means Qantas is able to reward shareholders, recognise the hard work of its people and invest for customers.
RETURNS FOR SHAREHOLDERS
The Qantas Board has declared a dividend of 7 cents per share (unfranked) to be paid on 13 October 2017 with a record date of 11 September 2017.
A further on-market buyback of up to $373 million has been announced. Once this latest buyback is completed the number of Qantas shares is expected to have been reduced by more than 20 per cent since October 2015.
Since the transformation program began in February 2014, the total return for Qantas shareholders – including share price appreciation and distributions – has been around $9 billion. This has made the Group the top performer on the ASX100.
INVESTING FOR CUSTOMERS
The Group will continue to invest in new aircraft, upgrading cabins and lounges, and extending its network of destinations.
The airline’s fleet of 12 Airbus A380s will receive a significant upgrade to improve passenger comfort as well as route economics (see separate release). This will include replacing Skybeds in Business Class with the latest version of the Business Suite; increasing the size of the Premium Economy cabin and installing the same all-new seats that will debut on the Dreamliner at the end of this year; and refurbishment of the Economy and First Class sections. Work will begin in the second quarter of calendar year 2019.
Both the Business and Qantas Club lounges at Melbourne Domestic will be progressively renovated from November this year, providing customers more space, comfort and dining options before they fly. (See separate release)
New lounges at both ends of the landmark Perth-London route will be completed during FY18, and two remaining A330s will have their cabins upgraded following lease extensions.
The rollout of Wi-Fi on the Qantas Domestic network (A330 and 737 aircraft) is expected to accelerate in late September 2017, once the current trial is complete and final regulatory approval for the new service is confirmed.
Jetstar will invest in additional service training for 4,000 of its frontline employees as it continues to stimulate new travel demand with low fares. The airline will start a new route from Melbourne to the Central Chinese city of Zhengzhou from December 2017, which is expected to bring 35,000 Chinese tourists to Australia a year.
Aviation
Air India’s B747 Makes Its Final Journey, Waving Farewell to Fans
In a poignant moment marking the end of an era in aviation history, Air India’s iconic Boeing 747 aircraft, affectionately known as the ‘Queen of the Skies,’ embarked on its ultimate journey from Mumbai’s international airport.
The departure, bound for Plainfield, USA, where it will undergo dismantling and part-stripping under the ownership of American AerSale, signals the closure of a storied chapter for the airline.
Once revered for transporting dignitaries ranging from prime ministers to presidents, the Boeing 747 has etched itself into aviation lore. Yet, as airlines worldwide pivot towards more contemporary and cost-effective aircraft, Air India’s decision to bid farewell to its remaining Boeing 747s reflects the pragmatic realities of today’s aviation landscape.
The sale of these majestic planes to AerSale represents a strategic move by Tata Group, Air India’s new custodian, towards optimizing operational efficiency and embracing modern industry standards. Out of the four aircraft sold, two will be repurposed into freighters, while the remaining pair will be meticulously disassembled to salvage valuable components.
The final flight from Mumbai witnessed a touching tribute as pilots performed a traditional ‘Wing Wave,’ symbolizing the conclusion of the Boeing 747‘s distinguished service with Air India. This poignant gesture encapsulates the deep sentiment attached to the aircraft’s departure and its significant contribution to the airline’s legacy.
As the Boeing 747 embarks on its journey to Plainfield, USA, nostalgia permeates the air, evoking memories of its maiden flight on March 22, 1971. Over five decades, Air India operated a total of 25 Boeing 747s, each leaving an indelible mark on the annals of aviation history.
Middle East
British Airways Resumes Daily Flights to Abu Dhabi, After 4-Year hiatus
British Airways made its way back to Abu Dhabi, landing at Zayed International Airport. Following a four-year break in service, both crew and passengers were greeted with enthusiasm.
In the summer of 2024, British Airways plans to launch a daily route, utilising a Boeing 787-9, from London Heathrow to Abu Dhabi. The new route enhances ties between the UAE and the UK and expands vast worldwide network, catering to passengers who may be visiting friends and family or travelling for business.
Arriving in Abu Dhabi at 08.30+1, flight BA073 to Abu Dhabi leaves London Heathrow at 22.25. Departing at 10.10 and landing at London Heathrow at 15.20 is the inbound flight (BA072).
The chief executive officer and managing director of Abu Dhabi Airports, Elena Sorlini, stated: “We are delighted to welcome British Airways to Zayed International Airport. Their daily schedule is expected to improve connectivity and stimulate travel and business.” Visitors may experience the dynamic capital of the United Arab Emirates like never before at our brand-new, award-winning, state-of-the-art terminal, where they will be welcomed with the best kind of Emirati hospitality.”
Flight schedule:
London Heathrow (LHR) to Zayed International (AUH)All times are local | ||||||
Season | Flight number | Departing LHR | Arriving AUH | Flight number | Departing AUH | Arriving LHR |
Summer ‘24 | BA73 | 22:25 | 08:30+1 | BA72 | 10:10 | 15:20 |
Winter ‘24 | BA73 | 22:25 | 09:30+1 | BA72 | 11:10 | 15:20 |
Aviation
FAA investigation: Passenger seated in Captain’s seat inside cockpit at cruising altitude
A viral video capturing a startling moment aboard a United Airlines charter flight from Denver to Toronto has triggered a federal investigation.
The footage, initially shared on social media by Hensley Meulens, the hitting coach for the Colorado Rockies baseball team, depicts a member of the coaching staff seated in one of the pilot seats while the aircraft was in mid-flight.
In his caption, Meulens expressed gratitude to the captain and first officer for allowing him this unusual experience. The video, filmed by another passenger, reveals the cockpit door open, and at one point, a third passenger briefly enters the flight deck. Alarmingly, during this time, the captain was absent from the cockpit.
Despite the flight being a private charter operated by United Airlines, company and Federal Aviation Administration (FAA) regulations strictly prohibit passengers from entering the cockpit during flight or leaving the flight deck unsecured.
United Airlines swiftly responded, expressing deep concern over the incident. A spokesperson emphasized that the video depicted an unauthorized person in the flight deck at cruising altitude with the autopilot engaged, constituting a clear violation of safety and operational policies.
The FAA confirmed that it is actively investigating the incident, highlighting that unauthorized access to the flight deck during flight is a violation of federal regulations. The agency assured that it is taking the matter seriously and will conduct a thorough examination to ensure compliance with aviation safety standards.