Qantas 'prepares for takeover bids'

Discussion in 'Qantas Airways | Frequent Flyer' started by uggboy, Jun 12, 2012.  |  Print Topic

  1. uggboy
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    uggboy Gold Member

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    || Qantas 'prepares for takeover bids' ||

    Of course middle eastern carriers want to grow further and Qantas seems to be a suitable takeover target right now!:cool:
     
  2. jetsetboy

    jetsetboy Silver Member

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    I'd much rather Emirates join an alliance so that we'd have more options for booking them on award tix :p
     
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  3. uggboy
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    uggboy Gold Member

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    You got that right, but the middle eastern carriers are in expansion / investment mode!;)
     
  4. jbcarioca
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    jbcarioca Gold Member

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    This is really interesting. Does anyone know how the Australian government would receive this idea?
     
  5. jetsetboy

    jetsetboy Silver Member

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    Yes, that's the unfortunate part for us. They're doing just fine with their strategic partnerships, without needing an alliance. :(
     
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  6. jetsetboy

    jetsetboy Silver Member

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    Not sure, but if the way the Australian gov understandably protects their wildlife/environment is any indication (as evidenced by the strict customs rules), foreign airlines are in for a wild ride.
     
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  7. wombat18
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    Interesting. I suspect this is only the beginning of the story ...

    "Emirates and British Airways both ruled out any interest in taking an equity stake yesterday, despite Qantas shares still trading at near record lows. ...

    The Qantas Sale Act ... limits foreign ownership of Qantas to a total of 49 per cent, while capping a single investor at 35 per cent and a foreign airline at 15 per cent.

    Qantas fears a private equity consortium would look to break up the airline and sell off divisions such as the Frequent Flyer loyalty program, Jetstar and QantasLink."
     
  8. Globaliser
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    Do you mean to suggest that the Australian government would instinctively protect a domestic airline operation against a takeover by a foreign airline?

    How would that suggestion square with the current ownership limit on foreign airlines owning domestic airline operations (other than is found in the QF-specific legislation)?
     
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  9. jbcarioca
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    jbcarioca Gold Member

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    With only superficial knowledge I am sure that statement is true, for good or ill.
    What would be the government response were there to be a OW takeover (however defined) that would have kairestsu-style characteristics similar to those that were considered for JAL? Similar speculation has been made about AMR bankruptcy reorganisation.

    It seems plausible that such a solution could happen. That would tighten the bonds of OW, increase cross-shareholding without violating any of the crucial national rules in Australia and the US, and allow better fleet coordination and other purchasing efficiencies. As it stands QF, BA. IB, AA, Latam (LA/JJ) all need serious improvements in operating economics and all are in the midst of major change. Would they not really rather be closer among each other?

    All this may be unrealistic. However, these are desperate times for mainline carriers. Even SQ is having a problem making money.
     
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  10. jetsetboy

    jetsetboy Silver Member

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    Nope, not suggesting anything, as I don't know what the Australian gov's laws are on such things. That's why I opened up with "not sure."
     
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  11. Globaliser
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    Ah, well: A domestic airline operation in Australia can already be 100% foreign-owned.

    Exhibit A: Tiger Airways Australia (TT). In the airline world, "strict customs rules" don't prevent you importing whatever wild animals you like.
     
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  12. wombat18
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    http://online.wsj.com/article/SB10001424052702303901504577461362136532468.html
     
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  13. jbcarioca
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  14. wombat18
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    Hmm, interesting question. I think Emirates is playing a really interesting dance at the moment. Not being a part of any alliance, indeed having concerns about market concentration. And, yet, they keep talking about codeshares (establishing and cancelling)?

    http://www.emirates.com/ae/english/images/Aviation_at_the_Crossroads_Aug11[1]_tcm277-713620.pdf
     
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  15. jbcarioca
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    One could conceive of EK playing a very major role in an alliance that needed capital, more reach, and greater capacity than individual carriers could manage.
     
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  16. wombat18
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    That sounds like OW, post-AA bankruptcy, eh?
     
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  17. jbcarioca
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    Rather. It certainly seems to be a good chance for EK to ramp up their global ambitions a few notches. fear and jealousy may preclude that from happening. Not to mention governmental nervousness beginning with Australia but including a few other countries.
     
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