Home » Uncategorized » Airline true profit hidden under the unreported costs and definatly much less than $17.2million

Airline true profit hidden under the unreported costs and definatly much less than $17.2million

Airline profit
Dr Wadan Narsey, Suva
It was initially quite reassuring to read (Fiji Sun, July 18, 2014) that the Fiji Airways is reporting “record profits of $17.2million” for six months and that the key driver of this was the 10 per cent higher load factor across the whole network, with four per cent more passengers and five per cent more sectors, all used in a “much more efficient way”.
But it was not reassuring to be told that this profit figure did not include the Sydney “hard landing” costs of $8.6million, and the “release of aged management accruals and one-off items like the introduction cost of the first A330”.
In other words, the real profits “in the hand” for the six months was much less than even $8.6million, although we are not told how much in reality as no costs were given to latter two exclusions.
Readers would then be further worried when told by the current CEO that Fiji Airways “was not in good shape back in 2013, with a lack of leadership and strategy and a rather dysfunctional management structure”.
This statement is quite contrary to the immense hype that the public was inundated with by Government ministers, the Board chairman, and the previous CEO (Pflieger) who bought the new Airbuses and disappeared before they flew a single commercial trip.
I hope that Mr Pichler’s performance as CEO will speak for itself when the “underlying” profit trends do become a reality in the long run, without any “one-off” events reducing the actual “profits in hand” which are certainly nowhere near $17.2 million.
He and Fiji taxpayers do not need the kind of deceptive hype that Fiji has been subjected to for several years before his arrival.
But while he is in the media, can Mr Pichler inform us shareholders in Fiji Airways,
(a) what percentage of the increased load factor and increased passenger traffic does he attribute to the new colours and the allegedly unique tapa designs painted on the planes?
(b) what did all that “rebranding”, also hopefully “one off”, eventually cost Fiji Airways, reducing actual profits further?
(c) is Fiji Airways still making any profits from the discounted fares on his monopolised domestic routes and how long will these discounts last?

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11 thoughts on “Airline true profit hidden under the unreported costs and definatly much less than $17.2million

  1. If this dick whacker was any good in his profession he would out among the hordes of highly qualified economists earning mega dollars but instead he remains in-situ awaiting death.

    Death by spurious and mendacious blogs.

  2. The so called dick whacker is at the top of the pile in his profession and unlike dickheads who comment from the safety of their animal farm in NZ; he stays at home standing up to tyranny and dictatorship.

  3. Sai Gitawa.

    Again you got it so wrong for this verbal-masturbator is far from being on top on the pile for this reason, he feels aggrieved from being coldcocked and unceremoniously booted from his much prestigious occupation to one that is most discreditable i.e. blogging.

    The dick whacker has a vengeful hatred for Frank’s regime which I suppose is understandable given his dilemma.

    The question is are you on top of your game or you just lay there whistling Isa Lei?

  4. The obvious that comes out of this further piece of deceptive hype from Mr Narsey are;

    a) Would Mr Narsey think that any new CEO is going to say anything other than the company was not being run too well before they arrived?

    b) Whilst there were certainly costs associated with the Sydney incident how is Mr Narsey a party to the financial arrangements of Fiji Airways with respect to the insurance aspect of these costs?

    Once again I would suggest that the hype is deliberately being stirred and biased by Mr Narsey to promote himself.

    What academic of any worth is going to ask “”(a) what percentage of the increased load factor and increased passenger traffic does he attribute to the new colours and the allegedly unique tapa designs painted on the planes?””

  5. “What academic of any worth is going to ask…”

    Well seeing as the rest of the academics in Fiji appear to be keeping their lips as close to the ground as possible – Prof. Narsey has always held to his reputation and is one of the last commentators in Fiji who is free and independent. Everyone else has too much to lose, or too much invested.

    If you ask me, whether or not I hold Prof. Narsey’s reputation above the conga-line of suckholes that appear to live and breath the regime’s usual tripe – I would insist that your question is rhetorical.

  6. With all do respect to Wadan, I am baffled when he say profit is much less tham $8.6m.

    Prof, profit would have been higher by an additional $8.6m or would have been $25.8m had it not been for the hard landing.

    I hope you are not getting senile. Its a pity your closed one sided mind is clouding your thinking.

    By the way, do you think LQ is telling the truth or is lying about the US $150m bond. Your various artilcles showed that they did borrow in 2006. Can you pls show some impartiality and state the facts.

  7. Prof Narsey is a smart professor. Its just that he dislikes everything positive that is going right now.

  8. To those who criticise Prof Narsey, please study his article again and note the questions he posed and relate them to his discussions and conclusions. It is a very simple matter when we do that without any bias. I have done that and I agree with the Professor. He has also referred to issues which demands more research and analysis on our part in order to fully appreciate where he is coming from. As a former student of the Professor, I admire his intellectual capacity and his courage to speak boldly without fear. He, like a few others, have been the voice of the suffering masses during seven and half years of thug rule in Fiji.

    How many have done that since the 2006 military coup?. Prof Narsey is one of Fiji’s greatest teachers in my book. His mix of academic achievements, moral courage and genuine concern for our nation is outstanding and an inspiration for many thousands of people in Fiji and elsewhere. He is a not a “bitter little man”, or “verbal masturbator”. He is a great leader, an outstanding and courageous teacher, a tremendous inspiration and a model citizen of Fiji. Should this nation ever come to true democracy again, then we must look no further than the Professor to help our new leaders of Fiji take us to a far better and greater future. Vinaka

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