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Qantas rejects claims of over-valued fleet
Qantas has refuted claims earlier in the week that it would have to write down the value of its fleet.
The airline was responding to a newspaper report this week that the valuation of its fleet of 213 aircraft could be around $3 billion more than market value.
Qantas chief financial officer Peter Gregg said this week there was no problem with the airline’s valuation.
He said that under new international accounting standards, aircraft valuations were based on “cash-generating units”.
The assumption behind this week’s claim was that the airline’s international business had been under pressure, and because of this was not generating a high enough profit, which could lead to a write-down.
“The simple thing that could have been done by everybody concerned would have been to check with the company,” Mr Gregg said.
“The auditors have agreed that you don’t separate international and domestic (sectors). We separate businesses (such as) Qantas and Jetstar.
“The Qantas business (combines) international and domestic and, as we know, the combined entity is relatively successful.
“The reality is that Qantas is regarded as a cash-generating unit, and as a cash-generating unit under International Financial Reporting Standards there is no issue on writing down the value of assets on the Qantas airline.”
Mr Gregg also said discussions were continuing with Airbus about delays to the double-decker A380, and he confirmed that there would be compensation.
Qantas now expects the first of its 12 superjumbos to arrive in October next year, a year late.
“We’re working with them as to the delivery schedule – obviously all the airlines are, because nobody wants to be disadvantaged,” Mr Gregg said. “We’re working our way through it and it’s a good discussion at this stage. We’re not happy, but it’s a good discussion.”
Graham Muldoon
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