Qantas is now the Australia’s leading airline for both domestic and international flights. It had been founded in 1920 in Queensland, which means Qantas has been operating for 95 now. It, also, is one of the strongest brands in Australia nowadays.
The directors say ‘We have built a reputation for excellence in safety, operational reliability, engineering and maintenance, and customer service’. Qantas flies to about 38 countries making more than 850 international flights weekly. More importantly it operates in every single Australia’s city that has its own airport.
Qantas uses a various planes in its fleet, which consists of: Airbus A380, Airbus A330, Boeing 747, Boeing 767, Boeing 737 as well as Boeing 787 Dreamliner and Bombardier…show more content… The major difference with its expenditure between 2013 and 2014 is $2.560.000.000 (Impairment of cash generating unit), which was spent in 2014 financial year and $387.000.000 (Impairment of specific assets). There is also a major difference in expenditure under the section “other”, which varies about $335.000.000 from the previous year.
Impairment of cash generating unit:
‘While there are significant surpluses in Qantas Loyalty, Qantas Domestic and Qantas Freight CGUs, impairment of $2,560 million arose in the stand-alone Qantas International CGU in respect of aircraft and engines. In allocating the impairment to individual aircraft assets their recoverable amount was not reduced below their fair value less costs to sell. The size of the impairment loss recognised is largely the result of wide body aircraft being purchased through a period where the Australian dollar was significantly weaker against the US dollar compared to recent years’.
Impairment of specific