Skytrax is probably one of the world’s most recognised award system in the airline world hence most travelers would probably have seen or heard at least a few of their awards going to a few airlines every year. Whilst Skytrax generally work on the basis of passengers voting for their preferred airlines, this system can be very subjective hence it may not necessary the best gauge of an airline’s profitability and sustainability.
For example, Garuda Indonesia may have won several awards in recent years but have been running into millions of dollars of losses. Likewise, Singapore Airlines may have consistently been recognised as one of the world’s premier airlines but its financial performance lags behind many of the lower ranked airlines. The same goes with the ultra glamorous airlines of the Middle East (Emirates, Qatar and Etihad), all of which have excellent hardware ans software but are probably bleeding profusely (Etihad especially!).
CAPA on the other hand is an analyst house that looks at the other side of the picture and has recently awarded Qantas its Airline of the Year award. Yes, it might be a boring award to most, but it is one that probably means more to those who might be interested in making some money from the airline, and not just paying the airline!
CAPA cited “The Qantas Group had turned in operating profits of at least US$1 billion ($1.47b) in its last three fiscal years while generating revenue of US$12b to $13b, with return on invested capital well in excess of its target of 15 per cent”. Not bad in an industry which is cut-throat and one which heavily relies on government subsidies in many countries!
Just shows that glossy advertising and chasing the world’s longest route is not always the best way to run an airline company! Qantas is an airline that I am proud to fly with and have confidence to invest in. It will probably be what keeps me flying when I enter into my retirement!