Profitability- COST CONTROLS - ANS-3 year cutting cost program ending in 2017: cut
5,000 jobs. sold planes/delayed delivery, froze wages —> 2019 generated record
earnings allowing shareholders to receive dividends
R
...
Profitability- COST CONTROLS - ANS-3 year cutting cost program ending in 2017: cut
5,000 jobs. sold planes/delayed delivery, froze wages —> 2019 generated record
earnings allowing shareholders to receive dividends
Reducing fixed costs
- restructuring management and employment relations to improve efficiency of rostering
system
- implementing more technology for long term cost gains to minimise waste
Reducing variable costs
- fuel conservation
- cutting commissions to travel agents
- casualisation of the workforce to reduce benefits paid to full-time employees
- downsizing workforce to reduce wage and salary outflows (stood down 6,000 since
2014)
- deferring/delaying new fleet deliveries
Profitability- REVENUE CONTROLS - ANS-- entering into new strategic alliances to
improve attract-ability of Qantas as if Q can't fulfil a route, one of its partners can,
expansion of services into the growing Asian market, improving marketing/appeal
through the new international business class and check-in kiosks
Profitability- EFFECTIVENESS - ANS-- Effective as cost-cutting saved 3.2B over last 5
years, reducing overall cost face by about 20%
- Despite 21% fall in revenue, managed to still post a 124M underlying profit
- fuel and labour costs variable so can be difficult to control
Net profit ratio
0.06:1 2015
0.09:1 2019
ROE
44% 2019
47% 2017
Liquidity- CASH FLOW MANAGEMENT - ANS-- managing cash flow by writing
cashflow budget helping to predict trends, identity peaks and troughs in demand so Q
can prepare
- reducing outflows by taking advantage of discounts for early payment
- distributing payments through activities like leasing
Continues...
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