Qantas denies bankruptcy rumours

[bambbbam2]

I think this report might just be a *little* bit of a beat-up..

http://www.thewest.com.au/default.aspx?MenuID=8&ContentID=136986

While Qantas Frequent Flyer, Jetstar and regional operations are still profitable, international operations - its biggest divisional earner - is leaking cash, especially at the front end of the planes.


"In the business class and first class - the premium cabins - we're seeing a drop internationally of over 20 per cent," Mr Joyce said.
"In economy, the volumes are actually holding. It's the yields that's the problem so that we're actually getting less in terms of airfares because there's a lot of discounting."


In a separate interview on Sky News, Mr Joyce said the airline's previous market forecast had allowed for a drop in premium traffic of between 20 per cent and 30 per cent, but the latest profit downgrade was due to fare discounts.


"Even in the last two weeks we've seen our competitors taking a 50 per cent discount on fares and we've matched (this) to remain competitive and that's causing our revenue to take a hit," he said.


But Mr Joyce flatly refuted claims that without Jetstar Qantas would be in danger of going bankrupt.

"Qantas is in no danger of going bankrupt - that's not where we are. What we're doing is managing ourselves through this environment and making sure we're healthy when we get through this.

 

[simongr]

So if the interviewer on Sky news had asked if they were thinking of rebranding as Ansett would it then be "news" that QF had denied it?

 

[Clark Kent]

Could we see the pin stripes from Mac Bank re enter the terminal, this time at a much, much depressed bidding price than before?

 

[oz_mark]

Could we see the pin stripes from Mac Bank re enter the terminal, this time at a much, much depressed bidding price than before?

Maybe, but a toll road in Brisbance is keeping them occupied at the moment! Not too mention that much of that private equitey buyout, load to company up with debt type deal is a bit out of vogue at the moment.

 

[Nigelinoz]

I agree with oz_mark about private equity deals being out of favour at the moment but that would be the only sort of deal likely to be touted in the current economic situation, by that I mean that I can't think of any airline in the world that is cashed up enough at the moment to launch a bid for Qantas so a private equity deal would seem to be the only thing with a snowflakes chance in hell of getting up and as oz_mark rightly points out Macbank is a bit preoccupied at the moment !
I think Qantas is in the same boat as most airlines at the moment,struggling to make a buck but staying afloat nonetheless.
I think "beat up" is a good way to describe this story.

 

[Clark Kent]

I do agree with the comments - I guess you have the cashed up Government backed airlines that might be interested, particlularly given the amount of value QAN has domestically. However in any case, a takeover would most likely be rejected by the Australian government.

Interesting days

 

[dajop]

"Newspaper denies that it employs intelligent people"......

Who is seriously suggesting that QF are about to go bankrupt? If they are you'd think they'd cut a bit more capacity first ..... and wouldn't a whole stack of other airlines elsewhere go first, as wasn't QF one of the more profitable airlines in the world?

 

[JohnK]

Bankrupt? Why do I get the feeling that the headline and the article have nothing to do with one another?

 

[coco50]

I agree with oz_mark about private equity deals being out of favour at the moment but that would be the only sort of deal likely to be touted in the current economic situation, by that I mean that I can't think of any airline in the world that is cashed up enough at the moment to launch a bid for Qantas so a private equity deal would seem to be the only thing with a snowflakes chance in hell of getting up and as oz_mark rightly points out Macbank is a bit preoccupied at the moment !
I think Qantas is in the same boat as most airlines at the moment,struggling to make a buck but staying afloat nonetheless.
I think "beat up" is a good way to describe this story.

I agree. I heard an aviation expert such as Peter Harbison (except I don't think it was he) say on TV last week that QF had $3bn in cash assets. If that's true then to be facing bankruptcy there must be a hell of a lot of current liabilities. Also another quote - If Qantas goes under most of the world airlines will too.