Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Qantas On The Warpath  
User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Posted (14 years 11 months 1 week 5 days 4 hours ago) and read 1502 times:

From this mornings (Fri) Melbourne Age:

Qantas seeks to lift foreign-owner cap

Friday 22 June 2001

Qantas will lobby the Federal Government to lift foreign ownership caps in the wake of the Singapore Airlines/Air New Zealand deal announced on Tuesday.

With the prospect of the Air New Zealand deal taking at least six months to conclude, the Australian airline is expected to attack the market by lining up Air NZ's wholly owned subsidiary, Ansett Australia, for a knockout blow with capacity increases and lower fares while setting up a low-cost international airline.

Qantas chief executive Geoff Dixon is already applying pressure on the Australian and New Zealand Governments to review the status of Ansett's ownership in light of the prospect of Singapore Airlines increasing its stake in Air NZ from 24.9 to 49 per cent.

"It would be unprecedented for the Singapore Government to control its own airline, Singapore Airlines, as well as Air New Zealand, Ansett Australia, and Ansett International," Mr Dixon said.

"This would not happen in any other part of the world," he claimed.

Mr Dixon and chairman Margaret Jackson met Transport Minister John Anderson on Wednesday night and they will meet Prime Minister John Howard again next week.

Air NZ/Ansett chief executive Gary Toomey conceded yesterday that the deal could attract the attention of Australia's Foreign Review Board and the Australian Competition and Consumer Commission. But he insisted that control by Singapore Airlines was not an option.

Analysts suggest the most likely outcome is that the NZ Government will approve the deal and lift ownership caps, now at 25 per cent, and the Australian Government will follow suit, allowing British Airways to increase its 25 per cent stake in Qantas to 49 per cent.

New Zealand Finance Minister Michael Cullen has already sought advice from an investment bank on changing the foreign-ownership regulations, while the opposition National Party has stated it would support the relaxing of the limits.

Greater access to foreign equity markets is the key to both Qantas and Air NZ being able to raise funds for aircraft purchases. Qantas has $8.4 billion in aircraft on order, while Air NZ needs to spend $5 billion.

Qantas' pitch is that it needs British Airways help to balance the Singapore Airlines-led resurgence of Ansett and Air NZ.

Before that happens, Qantas wants to deliver some more blows to Ansett, which is still struggling to recover from the groundings of its 767s at Easter.

According to analysts, Qantas will also move to set up a lower-cost international airline to better compete with Singapore Airlines and Malaysia Airlines, which have lower staff costs.

Late last year, Mr Dixon briefed analysts in London and made it clear that Ansett was the target of a big push to further increase its dominant market share of 56 per cent. In another briefing, this time to executives, he warned that the airline needed to make significant inroads into Ansett's remaining corporate clients before Singapore Airlines was able to pour critically needed cash into Ansett.

High fuel prices, the weak Australian dollar and poor staff morale after years of ownership instability have ravaged Ansett, leading to a $119 million loss for the six months to December. That loss is known to have blown out considerably.


7 replies: All unread, jump to last
User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13756 posts, RR: 18
Reply 1, posted (14 years 11 months 1 week 5 days 4 hours ago) and read 1470 times:

Can't QF cope with the AN competition or something???

And what difference can BA make?!

Anyone can fly, only the best Soar.
User currently offlineBruneiAir From , joined Dec 1969, posts, RR:
Reply 2, posted (14 years 11 months 1 week 4 days 20 hours ago) and read 1446 times:

"Can't QF cope with the AN competition or something??? '
That's a silly question, of course they can. They probably cant compete with SQ/AN/ANZ/DJ/VS(?). Your second Question is answered above "Greater access to foreign equity markets is the key to both Qantas and Air NZ being able to raise funds for aircraft purchases"

 Smile/happy/getting dizzy
Giving the world Asias BEST

User currently offlineJet_guy From New Zealand, joined Aug 2000, 231 posts, RR: 0
Reply 3, posted (14 years 11 months 1 week 4 days 19 hours ago) and read 1441 times:

Ive said it before, and ill say it again!! SORE LOSERS!!!!!
SQ is much better for NZ than QF!

User currently offlineV Jet From Australia, joined May 1999, 719 posts, RR: 2
Reply 4, posted (14 years 11 months 1 week 4 days 19 hours ago) and read 1437 times:

Jet Guy , Thanks for that well thought out rather moronic response. Why respond if you dont have anything to contribute. It is not a case of SQ being better than NZ or QF or MH or TG or UA or BA or AZ or LH etc etc, nor is it about being sore losers.
It is about a foreign airline/Govt gaining control of the majority of the ANZAC aviation market. It may come as a surprise to you but that will bother a lot of people on both sides of the Tasman. I've said it before. I dont believe it is over by a long way yet.

User currently offlineJet_guy From New Zealand, joined Aug 2000, 231 posts, RR: 0
Reply 5, posted (14 years 11 months 1 week 4 days 19 hours ago) and read 1435 times:

Jeez v-jet calm down, cant I state my OWN PERSONAL view without some one jumping down my neck!!!!!
I have read all that has come out about the whole NZ/AN/QF/SQ deal, and thats what I think, sorry if listening to other peoples OWN PERSONAL opinions is such a burden to you!!!!!!!!!!!

User currently offlineTullamarine From Australia, joined Aug 1999, 1806 posts, RR: 1
Reply 6, posted (14 years 11 months 1 week 4 days 19 hours ago) and read 1429 times:

VJet, you are right, it is about control, but regardless of what happens one airline grouping will end up larger than the other and there is nothing in Qantas' behaviour that suggests it would be anymore responsible or competitive than SQ if it were granted (or allowed to continue in) a dominant position. Both are businesses and both companies seek profit and both companies seek control. Words by SQ or QF that they only seek partnership and co-operation are to be taken for little value. Both companies like to be able to direct where their investments are spent.

It is the governments of both Australia and NZ's duty to ensure consumers are not affected unduly by these transactions. Either option has possible deleterious effects on competition but there is no doubt that the NZ government at least would probably prefer the SQ option as it preserves trans-Tasman competition, trans-Pacific competition (QF already has full rights out off AKL) and domestic competition in NZ.

The QF option is much more risky in this regard as a monopolistic situation is created across the Tasman and SQ has never said that if it were to acquire AN that it would have any interest in establishing a domestic operation in NZ and to do so would be amazing frankly given the experience of Ansett NZ.

User currently offlineJupiter2 From Australia, joined Jan 2001, 1019 posts, RR: 1
Reply 7, posted (14 years 11 months 1 week 4 days 18 hours ago) and read 1424 times:

I've been trying to bite my lip and not say anything, but I have to. Most people would probably not have a problem with SQ taking control of NZ if SQ was a private company but it is not. Would the Singapore government allow an airline under the control of a foreign government to take control of their national airline ??? I think not.
Anyway whats wrong with QF having a whinge or trying to set up a low cost airline, one sounds like a natural reaction and the other sounds like a reasonable idea to me, the problem will be Australian unions, but if QF can guarantee few or no job losses at the main carrier then they would probably support it, as lets face it there will be more jobs, some in Australia and some overseas.
My choice for the aircraft to be used, 763's, to serve YVR/HNL/PPT/ICN/SHA/KUL/BEG/ATH/SIN/MNL/DPS.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Aer Lingus Unions On The Warpath posted Thu Mar 30 2006 21:56:18 by Kaitak
Qantas To Add The 747-300s On The PER-MEL Route posted Fri Sep 29 2006 09:27:21 by AeroplaneFreak
Excellent Article On The Qantas 787 Vs A350 Choice posted Fri Dec 16 2005 16:58:22 by ClassicLover
Qantas 737 Near Misses On The Ground posted Thu Jun 28 2001 22:10:09 by Jiml1126
FR Is Back On The London - Brussels Route posted Wed Dec 13 2006 11:59:13 by HBDAN
NZ Getting Real On The Tasman posted Mon Dec 11 2006 04:14:35 by Antskip
Why Doesn't AA Have 'Economy Plus' On The 777s? posted Sat Dec 9 2006 20:58:13 by Gh123
Any Comments On The New DL Route? JFK-BOM posted Fri Dec 8 2006 09:16:17 by B773ER
The Windows On The CRJ's posted Wed Dec 6 2006 20:25:15 by Bobprobert95
Cfrp Panels On The A350 posted Mon Dec 4 2006 12:36:06 by CPairDC10