Malb777 From Australia, joined Jul 2004, 462 posts, RR: 1
Reply 3, posted (10 years 6 months 2 weeks 4 days 14 hours ago) and read 3895 times:
That sounds like a great idea as QF needs a bit of a run for its money at the moment, getting a bit complacent that they recieve all the high end traffic and charge a fortune for all flights ex DRW at the moment since Virgin pulled some of its services. Perhaps if SQ did by Virgin it could give all the Ansett FF a percentage of their lost points to lure pax away from QF . I say this because I lost 275.000 points when they went through the hoop. Not that it would ever happen though.
thank god i was not born a bird. this type of flying is much better
Gemuser From Australia, joined Nov 2003, 6206 posts, RR: 6
Reply 4, posted (10 years 6 months 2 weeks 4 days 13 hours ago) and read 3816 times:
Not impossible, but Patricks would have to sell and they are known to never sell cheaply and SQ are not known for buying at full price, so I think the two of them reaching agreement would be difficult.
Kiwiandrew From New Zealand, joined Jun 2005, 8897 posts, RR: 12
Reply 6, posted (10 years 6 months 2 weeks 4 days 12 hours ago) and read 3779 times:
Interestingly this article appeared in the Sydney Morning Herald recently suggesting that Patrich should dump DJ ( no word as to whether they actually want to bail out though!)
"Budget airline Virgin Blue has become a noose around the neck of majority stakeholder Patrick Corp Ltd, according to brokers Citigroup Smith Barney.
Citigroup analyst Jason Smith said logistics and ports operator Patrick Corp would have a brighter future without its 62.4 per cent stake in Virgin Blue.
"Virgin Blue continues to be a noose around Patrick's neck, with fuel prices remaining high, with Jetstar adding 30 per cent capacity in the next year and with Virgin Blue's muddled attempt at trying to be something to everyone," Mr Smith said in a research note to clients.
He said Virgin Blue was also trying to cope with significant management change and a rising cost base, the successful segmentation of the market by Qantas, Jetstar's strong growth and disappointing operating statistics for March to May.
"The unfortunate thing is that without its 62.4 per cent holding in Virgin Blue, we believe that Patrick would be the stand-out stock in the sector on a two to three-year view," Mr Smith said.
AdvertisementPatrick's earnings were expected to gain significant benefit from expansion of its Fisherman's Island and Port Botany ports, the introduction of auto straddle technology in Brisbane and the removal of a container movement levy in mid-2006.
The outlook for Pacific National - Patrick's joint-venture rail operations with Toll Holdings Ltd - was also very robust as governments spend more on improving rail infrastructure, the expansion of Pacific National into Queensland and the return to normal grain harvests following good rains in June.
Citigroup said that following Virgin Blue's poor monthly data, it had cut its estimated reported net profit for Patrick Corp by 5.5 per cent to $210.4 million for the 2005 full year and by nine per cent to $248.8 million for 2006.
It warned that further downside risk was possible given Jetstar's rapid expansion, with fuel costs unhedged and with Virgin Blue's decision to expand internationally.
Patrick shares were steady at $5.53 at 1215 AEST on Wednesday. Virgin Blue was 0.5 cents lower at $1.65."
Presumably if ( and it is a big "if" ) Patrick sold to SQ it would put an end once and for all to any possible merger between QF and SQ ( not that I really thought that would ever happen anyway )
Moderation in all things ... including moderation ;-)
Bill142 From Australia, joined Aug 2004, 8499 posts, RR: 8
Reply 7, posted (10 years 6 months 2 weeks 4 days 11 hours ago) and read 3710 times:
Quoting Kiwiandrew (Reply 6): Presumably if ( and it is a big "if" ) Patrick sold to SQ it would put an end once and for all to any possible merger between QF and SQ ( not that I really thought that would ever happen anyway )
Not True, SQ could always off load DJ before any merger with Qantas. Temasek would be ideal for a quick off load and leave it upto them to sell it to someone else.