1(a)
Under AASB 8[5] (2012), Qantas as a for-profit entity whose shares are traded on the ASX (Qantas 2013, p. 104) and who engages in aviation services, is required to report operating segments for which discrete financial information that is reviewed regularly by the chief operating decision maker (CODM) in deciding resource allocations and assessing performance is available. Shanahan (2011) contends Qantas has breached AASB 8 by not making international operations (IO) a separate operating segment because information on IO’s loss would have been reported internally and periodically reviewed by CODM as it largely instigated Qantas’s transformation initiatives. This internal information should be disclosed ‘to shareholders at an appropriate level of aggregation’ (Shanahan 2011) to ‘give real insight about a company’s performance’ (Shanahan 2011) and enable users to view Qantas ‘through the eyes of management’ (Parker 2007, p. 72).
Geographic segment disclosures enables users to observe risks, resource concentrations and ‘whether the performance of one business subsidised the performance or lack of performance of another’ (Harmer 2007). Relevantly, Australian Aviation (2011) claimed that Qantas was subsidising Jetstar while hurting its mainline operations through asset movements, EBIT for Qantas Frequent Flyer was 30% but under full brand (including international and domestic) only produced 0.6% return compared to Jetstar’s 6% and IO’s loss may have consumed some of the corporate/unallocated segment’s $123m (Creedy 2011), yet Qantas mainline had disproportionately higher staff (27,000 people) compared to Jetstar’s 3100 and Frequent Flyer’s 82 (O’Sullivan 2011).
Qantas merely stated IO’s $200m+ loss was an ‘unacceptable return’ ...
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...n 2014) added to increased political protest for disclosure. Further following a forensic accounting report from PPB Advisory, Australian and International Pilots Association questioned the vast discrepancies between redundancies and margins between Qantas’s segments (O’Sullivan 2011) and how corporate segment’s $123m loss was allocated, contending they incurred some of it (Creedy 2011), emphasising requests for greater visibility by interest groups and accounting advisory bodies. Similarly, taxpayers, Transport Workers Union and employees (Age 2014) demanded reviews of Qantas’s books and explanations of IO strategic priorities, redundancies and failed Jetstar Asia strategy (Pauka 2014), while Virgin threatens market share with improved performance (Grimson 2014) and consistent disclosure of both international and domestic segments (Virgin Australia 2013, p. 99).
• Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of management
Qantas is the 11th largest airline as of 2014 and ranked 1st in Australia, whose prime function is the quality transportation of passengers and airfreight across domestic and international routes. Qantas has been successful due to its innovative cost controlling of the business in expense minimisation. However as a result of this, the business has undergone capital-labour substitution and the casualisation of the workforce. This developed workers’ concerns of their remuneration, employment conditions and job security which caused the engineers and ground workers disputes in 2011. Qantas has responded to these workplace disputes with the strategies of negotiation, grievance procedures and tribunals within its contractual and legislative grounds.
The Australian Stock Exchange’s (ASX) Corporate Governance Council (2014) defines corporate governance as “A framework of rules, relationships, systems and processes within and by which authority is exercised and controlled within corporations”. One goal of corporate governance is for the board members to increase shareholder value (Tricker 2015). In order to achieve this, it is important that the board act appropriately and justly so that the best interest of investors are protected. This report will explore the effectiveness of JB Hi-Fi’s corporate governance. JB Hi-Fi is Australia’s largest home entertainment retailer, selling a variety of products at discounted prices. Over the years, they have maintained a substantial
The industry for Qantas Airways Limited is a company that guides a long distance in airline, which is in international and domestic location. Qantas Airways Limited is a company that established as a world airline that comes from Australia.
One of the many influences that affect Qantas is the presence of globalisation, which has heavily affected the airline both positively and negatively. Globalisation is a process which refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Globalisation is responsible for the removal of many trade barriers and the increased level of competition that Qantas has been exposed to. The increased levels of competition has increased consumer sovereignty and forced Qantas to implement strategies to gain a competitive advantage in order to redirect consumers towards their business. Qantas has implemented a cost leadership strategy as a response to globalisation and the influence of cost based competition. One way that Qantas achieved this was by using Globalisation itself to the business’ advantage. Globalisation ha...
Topic A (oligopoly) - "The ' An oligopoly is defined as "a market structure in which only a few sellers offer similar or identical products" (Gans, King and Mankiw 1999, pp.-334). Since there are only a few sellers, the actions of any one firm in an oligopolistic market can have a large impact on the profits of all the other firms. Due to this, all the firms in an oligopolistic market are interdependent on one another. This relationship between the few sellers is what differentiates oligopolies from perfect competition and monopolies.
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
British Airways (BA) is the main and largest carrier airline of the United Kingdom. It’s headquarter is located in Waterside. The British Airways Group was established in 1972. It included British Overseas Airways Corporation (BOAC) and British European Airways (BEA). In 1974 British Airways was formed after the dissolution of BOAC and BEA (British Airways, 2015).
D’Amato, E. (2010). Australian Shareholders’ Association: Standing Up for shareholders – The top 15 financial ratios. Australia: Lincoln Indicators Pty Ltd.
DuBois, S. (2012, February 17). The real threat facing the airlines - Fortune Management. Fortune Management Career Blog RSS. Retrieved April 29, 2014, from http://management.fortune.cnn.com/2012/02/17/the-real-threat-facing-the-airlines/. Tom, Y. (2009). The 'Standard' of the 'Standard'.
1- Issues The main issue of this case is the lack of profits of the airline industry, an industry that should be more than profitable due to the large amount of customers, the necessity of using airlines’ services and the high prices charged by most of these airlines. What we are going to deal with is, why is this happening? And how is American airlines dealing with this problem?. To be able to discuss how American airlines wants to regain profitability, we must identify and analyse different issues such as, the company’s background, the airline industry as a whole, the demand for air travel, the marketing strategies, the distribution systems, pricing policies etc.
4) . One of the largest bankruptcies in history was enabled by accountants hiding debt and destroying the evidence to avoid implication (Buckstein, part 2 pgs. 1, 2, and 3). These unfortunate events led to the need for increased scrutiny and regulations, including the Sarbanes-Oxley Act (Buckstein, part 3 pg 1). This legislation inspired the creation of the Canadian Public Accountability Board (CPAB) (Buckstein, part 3 pg 1). These changes have led to an increased awareness of the need for auditor independence as well as higher standards for accounting and business in general (Buckstein, part 3 pg 1). While these measures have helped to reassure the public, there is still the question of why Accountancy is not a protected
The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.
There are other ways in which airlines customers are segmented. The airline services are divid...
In order to get a comprehensive analysis on SIA's financial statement analysis , we compared SIA's 5 financial year ending(FYE) results with the industry's average and 2 of its main competitors Cathay Pacific Airways and Qantas Airways . Cathay has been trailing closely to SIA in terms of first class cabin service and profitability for years. Qantas has long been dominating the highly profitable Kangaroo route and is ranked 5th in the world by Skytrax's survey . Please refer to appendix for the actual figures for every analysis below.