EK have no desire to invest in QF

[markis10]

QANTAS partner Emirates has declared it has no interest in rescuing the Australian airline with an equity injection, even if the legislation barring foreign ownership were changed


The fate of Qantas is expected to be debated at a cabinet meeting tomorrow, with the government considering whether short-term palliatives, such as debt guarantees, are warranted.

http://www.theaustralian.com.au/bus...s-qantas-equity/story-e6frg95x-1226783593530#

Source of story:

Emirates, Qantas’s new alliance partner has dismissed a stake in the besieged Australian icon dashing hopes of a quick equity fix to its financial woes.


Over the weekend the Prime Minister Tony Abbott flagged that he would consider relaxing the Qantas Sale Act lifting caps on foreign ownership.


But yesterday Emirates President Tim Clark said in an email response to The West Australian that while the airline “will watch it [the situation] carefully” it didn’t have the “bottomless pit of cash” that Virgin Australia’s partner Etihad Airways has.


“So no, equity is not on the table,” Mr Clark said.

http://www.airlineratings.com/news/186/emirates-turns-qantas-down


I cannot help but think that the sudden attack on VAs capital raising was as a result of a similar message in confidence to QF, ie Your partner is not cash rich like VA's.

 

[777]

Maybe in this traffic the bicycle was a much better ride than the BMW?

 

[dajop]

Not too surprising. EK have focused on becoming big in their own right. EY don't seem to be expanding their own metal at anywhere near the same rate, but have been very active in investing in airlines outside the Middle East.

 

[moa999]

EK's history of investing is limited - and disasterous - see UL (Sri Lankan)
- seems a bit like QF and the FJ investment (strangely this is never focussed on with current commentators bagging Jetstar instead).


And anyway, they now have a partnership with QF delivering lots of QF FFs to their DXB base, what more could they gain from an investment

 

[anat0l]

But yesterday Emirates President Tim Clark said in an email response to The West Australian that while the airline “will watch it [the situation] carefully” it didn’t have the “bottomless pit of cash” that Virgin Australia’s partner Etihad Airways has.

What the hell is this quote all about, especially from Tim Clark?

Methinks the EY CEO may come out swinging on this one.

 

[markis10]

What the hell is this quote all about, especially from Tim Clark?

Methinks the EY CEO may come out swinging on this one.

Your not familiar with the difference between Dubai and Abu Dahbi re finances?

 

[Must...Fly!]

What the hell is this quote all about, especially from Tim Clark?

Methinks the EY CEO may come out swinging on this one.

It's quite relevant.

markis can you describe the differences in terms of dollars? I knew Abu Dhabi had more but don't know how much more?

 

[markis10]

It's quite relevant.

markis can you describe the differences in terms of dollars? I knew Abu Dhabi had more but don't know how much more?

I don't know of the figures as such but Burj Khalifa would be Burj Dubai if it were not for the fact they ended up with financial help from Sheik Khalifa bin Zayed Al Nahyan, with EK reporting to the Dubai Government while EY being a direct report to the Royal family.

 

[anat0l]

Your not familiar with the difference between Dubai and Abu Dahbi re finances?

Probably not, but at the same time Tim Clark is always trying to purport that EK, though state owned, does not receive special favours from the host emirate, nor does it have a "bottomless chequebook" backed by the emirate. Essentially he's always trying to portray that EK can make it on its own, just like many other airlines in the world. (How real that position seems to be - though oft quoted as a defence in front of many Western countries - is a whole other thing).

I thought EY would have a similar dictum. So the relative emirates in which they exist would be irrelevant, and so would that quote by Tim Clark.

Otherwise, one may actually have a valid argument (hard to believe) in that VA does have rather indiscriminately wealthy backers!

 

[markis10]

Probably not, but at the same time Tim Clark is always trying to purport that EK, though state owned, does not receive special favours from the host emirate, nor does it have a "bottomless chequebook" backed by the emirate. Essentially he's always trying to portray that EK can make it on its own, just like many other airlines in the world. (How real that position seems to be - though oft quoted as a defence in front of many Western countries - is a whole other thing).

I thought EY would have a similar dictum. So the relative emirates in which they exist would be irrelevant, and so would that quote by Tim Clark.

Otherwise, one may actually have a valid argument (hard to believe) in that VA does have rather indiscriminately wealthy backers!

EY don't have a similar dictum simply because their state finances are in so much better shape than Dubai, which was the point I was making, Dubai went early in the race and were hurt by the GFC as far as I understand it, the fact Abu Dhabi has most of the Oil and Gas reserves is no doubt a significant factor as well. The majority of the UAEs crude reserves (6% of the worlds known reserves) are held by the UAE’s capital and largest emirate by size, Abu Dhabi. Its large onshore and offshore fields together account for 94 per cent of the country’s total reserves. By contrast, Dubai and the other five northern emirates account for just 6 per cent of the total.

Reporting from Cairo and Beirut — The flashy spendthrift needs his prim, conservative neighbor to bail him out.


Such is the situation between debt-ridden Dubai and flush Abu Dhabi, two Persian Gulf emirates with starkly different financial strategies and temperaments that may grudgingly need each other to prevent long-term investor panic from spreading beyond the United Arab Emirates.

http://articles.latimes.com/2009/dec/01/world/la-fg-emirates1-2009dec01

 

[jetlagger]

I don't know of the figures as such but Burj Khalifa would be Burj Dubai if it were not for the fact they ended up with financial help from Sheik Khalifa bin Zayed Al Nahyan, with EK reporting to the Dubai Government while EY being a direct report to the Royal family.

Dubai has the facade, though the real wealth lies in Abu Dhabi & they are slightly more humble about it.

 

[Must...Fly!]

Interesting stat re: oil reserves, markis. Thanks for sharing.

 

[maninblack]

Neither do I :!:

 

[SteveJohnson]

Why should Emirates invest in Qantas? It's got everything it wanted: access to QF customers, probably access to the QFF database, ability to entice a lot more Australian travellers to 'sample' Emirates due to their Qantas alliance.

 

[Isochronous]

EK's history of investing is limited - and disasterous - see UL (Sri Lankan)
- seems a bit like QF and the FJ investment (strangely this is never focussed on with current commentators bagging Jetstar instead).


And anyway, they now have a partnership with QF delivering lots of QF FFs to their DXB base, what more could they gain from an investment

Is QF still not participating on the FJ board?

With a bit of effort QF could have turned FJ into a real winner.

 

[wandering_fred]

Is QF still not participating on the FJ board?
With a bit of effort QF could have turned FJ into a real winner.

But the FJ NAN connection to LAX would compete with QF's (last?) profitable route...

I wonder if QF could put a prospectus together that would offer QFF points (and status?) with the purchase of new QF common shares?

Happy wandering

Fred

 

[casanovawa]

Wonder if they turfed AJ whether they could mend fences with the bicycle bunch???