Is Qantas planning on selling its stake in Fiji Airlines (Air Pacific) to Emirates?

[dk4]

I’m sure that no one on here, whom may know the answer, will respond… but if EK starts pumping capital into the Pacific, enabling the introduction of a whole new host of one stop (viaNAN) destinations throughout the Americas, could we see a reduction in QF International metal across the Pacific, in favour of more cost effective code-shares with a “revitalised” Fiji Airlines within a few years?

 

[docjames]

Re: Is Qantas planning on selling its stake in Fiji Airlines (Air Pacific) to Emirate

Until recently it's been virtually worthless. So there's been no reasonable buyer.

The new FJ CEO has made quite a lot of changes, and things look more positive.

If a buyer comes along offering a fair price, I don't doubt qantas would jump. Then flood Fiji with orange tail aircraft.

 

[markis10]

Re: Is Qantas planning on selling its stake in Fiji Airlines (Air Pacific) to Emirate

QF and Air Pacific/Fiji are not talking at present, I don't see much happening in the future.

 

[pauly7]

QF and Air Pacific/Fiji are not talking at present, I don't see much happening in the future.

Bit of an exaggeration, but I know you were talking more symbolically.

We had QF and FJ execs at a recent conference and despite the icy relationship in the mainstream press they are still talking and had meetings booked privately prior.

I would definitely say it is a strained relationship however!

 

[markis10]

Re: Is Qantas planning on selling its stake in Fiji Airlines (Air Pacific) to Emirate

Bit of an exaggeration, but I know you were talking more symbolically.

We had QF and FJ execs at a recent conference and despite the icy relationship in the mainstream press they are still talking and had meetings booked privately prior.

I would definitely say it is a strained relationship however!

I was talking at board level, where Qantas has withdrawn its directors (Hickey, Kumar and co). With the new laws making the board composition 75% Fijian, the government there has effectively taken control. Thats hardly symbolic, so no, I am not talking symbolically!

 

[dk4]

Re: Is Qantas planning on selling its stake in Fiji Airlines (Air Pacific) to Emirate

IMO, Qantas’ problematic relationship with Air Pacific was entirely of its own making.

I imagine that originally their strategic investment in FJ was designed primarily as a blocking initiative: That is to ensure that someone else with capital didn’t come in, and build a network hub, in the middle of the Pacific, to compete against its formerly "uber-profitable" AU-US routes.

So while the Fijians were eventually going to want capital for expansion, Qantas was never going to be in a position to deliver this. Leading to the current frustrations on both sides.

However, now that Qantas has had a comprehensive strategic rethink, refocused on ROI goals for its owners, recognised that its real strength is its database and is enamoured with the idea of partnerships & capital light solutions; I would think that now is the perfect time for it to join with someone whom is prepared to set up a Pacific hub, of the sort that it was (presumably) previously trying to block.

Unfortunately Emirates has had problems with Sri Lanka in the past, so the Fijians may need to be malleable on the ownership/management position to which they insist, but if their goals are simply to generate a larger airline based in Nadi, and feed off the subsequent economic stimulus, I think that they will be talking. And over at Qantas, they probably just need to find a new "untainted" voice with which to speak.

 

[moa999]

Re: Is Qantas planning on selling its stake in Fiji Airlines (Air Pacific) to Emirate

EK like QF hasn't had great experiences with minority partnerships in Govt controlled airlines.
See UL - Sri Lankan

Where is it mentioned that EK would be pumping flights through NAN... if anything this would destroy Air Pacific/Fiji Airways

 

[pauly7]

I was talking at board level, where Qantas has withdrawn its directors (Hickey, Kumar and co). With the new laws making the board composition 75% Fijian, the government there has effectively taken control. Thats hardly symbolic, so no, I am not talking symolically!

As I posted markis, the companies are still talking. You made a broad sweeping statement that claimed they were not. They are. The relationship is absolutely in a nasty place but to infer that the drawbridges are up is incorrect. The directors you mention are actually still involved. But not in the capacity as you correctly outline above.

 

[markis10]

Re: Is Qantas planning on selling its stake in Fiji Airlines (Air Pacific) to Emirate

As I posted markis, the companies are still talking. You made a broad sweeping statement that claimed they were not. They are. The relationship is absolutely in a nasty place but to infer that the drawbridges are up is incorrect. The directors you mention are actually still involved. But not in the capacity as you correctly outline above.

They are not talking about a sale, and stood down directors as a result of the government moves as Olivia Worth pointed out in the AFR, they are waiting on the independent arbitrator to be appointed as per the agreement. Given they codeshare, I am sure they talk on other levels, just not the sale which of course is the subject of this thread.

Qantas within its rights on Air Pacific

Perhaps I should have been clearer in my statement, repeating that it related the the thread topic?