Australian politician to push for Emirates stake in Qantas

[markis10]

Australia plans to raise the issue of foreign investment in Qantas with Dubai’s Emirates Airline, as it looks to rescue its struggling national carrier amid mounting losses.
Andrew Robb, the Australian Minister for Trade and Investment, said he will personally raise the possibility of an investment in Qantas during a planned high-level meeting with Sheikh Ahmed Bin Saeed al-Maktoum, chairman of Emirates.
The Dubai airline struck an alliance with Qantas in March 2013, but has ruled out an equity stake in the troubled Australian carrier.

http://english.alarabiya.net/en/bus...take-sale-in-talks-with-Dubai-s-Emirates.html

 

[zainman]

was this always only a matter of time?

 

[markis10]

was this always only a matter of time?

Depends how truthful "not interested" is coming from Mr Clarks mouth, or what incentives are offered I suppose. Unlike some of the other airline heads in the region, I tend to find EK a say do airline.

 

[zainman]

Depends how truthful "not interested" is coming from Mr Clarks mouth, or what incentives are offered I suppose. Unlike some of the other airline heads in the region, I tend to find EK a say do airline.

I understand the reference to Mr. Akbar al Baker. However, What 'Sheikh Ahmed Bin Saeed al-Maktoum, chairman of Emirates.' say, Mr Clark does.

If they can get him on board, maybe only a matter of time. But doesn't the QF Sale act need to be modified to make this even possible?

 

[Fruitcake]

But doesn't the QF Sale act need to be modified to make this even possible?

The relevant restrictions at the moment are a maximum of 49% total foreign ownership, a maximum of 35% ownership by foreign airlines, and a maximum of 25% by any single foreign investor. So Emirates could acquire up to 25% of Qantas under the current iteration of the Sales Act.

For example, British Airways bought 25% of Qantas in 1993 and held that stake until 2004.

 

[moa999]

Disgraceful behavior from a politician IMHO.
And in any event Emirates has already said it is not interested, and arguably has what it wants via the current arrangement.


If Qantas wanted to raised $1bn today it could. Shareholders wouldn't be happy, but do a rights issue at $1 and you would raise the money.
While Qantas is tight on capital, it doesn't have a particularly acute capital problem.
It does have a share price problem,

and that is caused by a Profit problem.

An investment by Emirates won't help Qantas's profitability one iota

There are a bunch of other things the Government should be doing to help Qantas compete.

 

[HarryB]

Interesting comments by the analyst at the end of the article suggesting a management change would be more beneficial at Qantas than foreign investment. He is right with other comments too, at present there can't be much attractive about buying into Qantas unless you either get it cheap or there are sufficient incentives - I wonder if Mr Robb has a plan in that regard?

 

[whatmeworry]

If EK do take a large stake, I bet more of QFi will disappear and QF will leave OW.

 

[TomVexille]

An investment by Emirates won't help Qantas's profitability one iota

There are a bunch of other things the Government should be doing to help Qantas compete.

This.

Investment is nice, but if you can't turn a profit it doesn't mean much in the end.