Taking-off or crash-landing?
Qantas chief executive Alan Joyce says the company’s profits are poised to take-off, but Roger Montgomery says the whole airline industry is terminally unprofitable. Read article.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Lloyd
:
Roger,
Like most low return, or money losing activities, it must be a lot of fun and really really ego boosting for those involved. Look to Richard Branson, and Howard Hughes before him, as examples of the ethos that the industry attracts. Of course both have/had some other profitable ventures to subsidize their passion for airlines. Otherwise excess capacity would soon disappear and a modicum of economic return would be sustainable over the long run.
Regards
Lloyd
Roger Montgomery
:
Interesting observation Lloyd. Thanks again.