Originally Posted by
Platinum A332
The reality is all of Qantas' main competitors internationally enjoy some sort of government protection (even CX does, based in free-market Hong Kong).
This is an often made but rarely backed up claim at-least as far as SQ is concerned.
Here is the SQ annual report for 2011. Can you point out where in the P&L or Balance sheet it shows equity/cahs injections from the state?
Often quoted subsidies are:
1.) They pay lower landing/loading fees at their national hubs. So does "QF" in Melbourne, Sydney etc. As in QF charges more to service another airline than they do to service them selves.
2.) SQ can raise more money cheaply off the Singapore state balance sheet. SQ is owned by
Temasek Holdings which is the Singapore Sovereign Wealth fund. The closest equivalent in Australia is the Future Fund. A another equivalent may be approx $3Trillion Australians have invested in supper. In either case their balance sheets are a lot stronger than QF. But in either case QF is not seen as a good investment compared to BHP, banks, etc.