Article: Indonesia's Adam Air mulls stake sale to Qantas

Discussion in 'Open Discussion' started by Yada Yada, Feb 7, 2006.

  1. Yada Yada

    Yada Yada Established Member

    Dec 6, 2004
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  2. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    Not sure of the benefits of another LCC in SE Asia for QF.

    This would not be serious competition for Jetstar Asia but I thought the idea would be to pour more money into stabilising the Jetstar Asia business rather than purchasing another LCC.

    Interesting to see where this deal ends up.
     
  3. Yada Yada

    Yada Yada Established Member

    Dec 6, 2004
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    Yes, it will be interesting. I saw another report a day or two ago that said QF was talking to GA about a partnership. They are definitely up to something over there!

    I also saw a report today that indicated they may launch Jetstar Int'l even sooner than expected.
     
  4. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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  5. Yada Yada

    Yada Yada Established Member

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    I hadn't seen those artlices. Thanks JohnK. I found this quote interesting:
    Ouch! :eek:
     
  6. BlacKnox

    BlacKnox Active Member

    Jan 29, 2005
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  7. Damien

    Damien Member

    Aug 29, 2005
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    This is one of the joint ventures that Geoff Dixon was talking about in the Sunday interview. My feeling is that it will be domestic only. There are about 250,000,000 million people in Indonesia, so it may be an easy money spinner.
     
  8. NM

    NM
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    Aug 27, 2004
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    There may be lots of people, but how many of them can affort to fly at a ticket price that makes money for the shareholders?
     
  9. Damien

    Damien Member

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    Surely their due diligence would have told them whether there is enough potential business to justify going ahead with the proposal.
     
  10. NM

    NM
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    I am certain they know what they are getting into. My point was that a huge population does not necessarily relate to a huge market. The important thing is how many people have the need/desire and financial ability to travel by air? I still struggle to see how airlines can operate sustainably with the low fares sold by some Asian LCCs. I know they have a low cost base, but they must be very exposed to fixed costs like fuel, maintenance and money.
     
  11. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    Imo it doesn't make any sense as well. Foreign companies cannot fully own anything in Indonesia. Indonesia is also known for not co-operating with foreign companies. I think the whole deal sounds very dodgy.

    QF is contemplating buying a 20%-30% share in an Indonesian LCC. If they couldn't make a profit out of Jetstar Asia what makes people think that they would make a profit out of Adam Air in a nation where more than 50% of people could not afford to have an old beat up motorbike let alone buy an airline ticket.
     
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