Post by corsair67 on Dec 21, 2005 14:05:23 GMT 12
Well, now that QANTAS is doing better I won't be surprised if they follow Air New Zealand's lead and sack a large part of their engineering division staff too. Got to keep those shareholders and credit-rating agencies happy! 
More news from today's The Australian.
Qantas gains altitude after S&P approval
Steve Creedy, Aviation writer
December 21, 2005
QANTAS shares hit $4 yesterday, their highest level for almost three years, after credit ratings agency Standard & Poor's confirmed the airline's credit rating and gave its recently announced fleet upgrade the thumbs-up.
Qantas shares rose 9c to close at $4, a point last reached in January, 2003, and 87c higher than this year's low of $3.13.
S&P maintained the carrier's BBB+ long-term and A-2 short-term corporate rating, saying the outlook for the airline remained stable.
"Only one of three investment-grade airlines in the world, Qantas has a leading position in Australia's domestic market, solid ranking in Australia's international traffic, robust operating performance and moderate financial policy," S&P said.
"These positive factors are offset by the high risk and cyclical nature of the airline industry, growing competition across Qantas's network, and exposure to volatile fuel prices and exchange rates, with high fuel prices plaguing the industry's near-term outlook."
The ratings agency's stamp of approval came after Qantas last week announced it would acquire 65 787 next-generation aircraft and had taken purchase rights on 50 more. Qantas is also moving to expand its low-cost Jetstar brand to international services by 2007 and has accelerated its Sustainable Futures cost-cutting program.
S&P credit analyst Jeannette Ward said Qantas had been working hard to find the right balance between generating high revenue and a cost structure that could withstand the growing commoditisation of air travel and an increasingly price-sensitive customer base.
Although not without risk, the airline's cost and investment initiatives were critical to enhancing its financial performance and allowing it to withstand adverse market conditions.
"The effective implementation of these initiatives, along with the airline's strong liquidity, sufficient cashflow to fund its capital program and commitment to moderate debt usage should ensure stable credit quality in the next few years," Ms Ward said.
More news from today's The Australian.
Qantas gains altitude after S&P approval
Steve Creedy, Aviation writer
December 21, 2005
QANTAS shares hit $4 yesterday, their highest level for almost three years, after credit ratings agency Standard & Poor's confirmed the airline's credit rating and gave its recently announced fleet upgrade the thumbs-up.
Qantas shares rose 9c to close at $4, a point last reached in January, 2003, and 87c higher than this year's low of $3.13.
S&P maintained the carrier's BBB+ long-term and A-2 short-term corporate rating, saying the outlook for the airline remained stable.
"Only one of three investment-grade airlines in the world, Qantas has a leading position in Australia's domestic market, solid ranking in Australia's international traffic, robust operating performance and moderate financial policy," S&P said.
"These positive factors are offset by the high risk and cyclical nature of the airline industry, growing competition across Qantas's network, and exposure to volatile fuel prices and exchange rates, with high fuel prices plaguing the industry's near-term outlook."
The ratings agency's stamp of approval came after Qantas last week announced it would acquire 65 787 next-generation aircraft and had taken purchase rights on 50 more. Qantas is also moving to expand its low-cost Jetstar brand to international services by 2007 and has accelerated its Sustainable Futures cost-cutting program.
S&P credit analyst Jeannette Ward said Qantas had been working hard to find the right balance between generating high revenue and a cost structure that could withstand the growing commoditisation of air travel and an increasingly price-sensitive customer base.
Although not without risk, the airline's cost and investment initiatives were critical to enhancing its financial performance and allowing it to withstand adverse market conditions.
"The effective implementation of these initiatives, along with the airline's strong liquidity, sufficient cashflow to fund its capital program and commitment to moderate debt usage should ensure stable credit quality in the next few years," Ms Ward said.
