QANTAS077
Posts: 5171
Joined: Wed Jan 14, 2004 5:08 pm

Qantas Wins Appeal

Tue Oct 12, 2004 10:06 am

Qantas has won an appeal against the merger ban with Air NZ

http://www.abc.net.au/news/newsitems/200410/s1218071.htm
 
calvin99
Posts: 180
Joined: Thu Sep 27, 2001 5:20 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 10:19 am

http://www.abc.net.au/news/newsitems/200410/s1218071.htm

on the last sentence it said "The plan must have approval in both countries to go ahead." So seriously, there isn't anything big here unless New Zealand's court approve this alliance

[Edited 2004-10-12 03:21:56]
 
airbus3801
Posts: 1047
Joined: Wed Apr 28, 2004 12:49 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 10:21 am

If this does go through, I wonder about how this will have an effect on the alliances of each airline. ANZ with Star and Qantas with OneWorld. Will this instigate one of the airlines leaving their alliances?
 
Mulder
Posts: 61
Joined: Sat Sep 11, 2004 7:10 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 10:43 am

This can't really change anything because NZ High Court has ruled out the appeal in NZ. The merger officially came to an end a few weeks ago already. QF and NZ apparently are going to find new ways of cooperation which could involve a modified alliance.

I don't think NZ would want to leave Star. Maybe QF would consider Star remember back a few year UA or LH had tried to entice QF I don't remember exactly.
 
ORD2PHL
Posts: 242
Joined: Sun Oct 19, 2003 9:15 am

RE: Qantas Wins Appeal

Tue Oct 12, 2004 10:52 am

I just cannot see QF leaving oneworld, as much as I am a huge *Alliance fan the agreements between QF/BA run deep; should this acquisition be approved I think Star will be without presence in this part of the world unfortunately.

ORD2PHL
 
syncmaster
Posts: 1926
Joined: Mon Jul 15, 2002 9:55 am

RE: Qantas Wins Appeal

Tue Oct 12, 2004 11:05 am

I thought the QF/BA ties where a little on the rocky side as of late?
 
BBD
Posts: 60
Joined: Fri Sep 21, 2001 2:12 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 12:36 pm

Whilst, legally, the way would appear to be at an end, given the recent negative decision in NZ, I would imagine that the NZ government could simply "legislate" the way clear if it wanted to. I believe that this avenue, which would probably also be applicable in Australia, had been put forward by the relevant minister in NZ in the early days of the proceedings, but had been set aside as not being the desirable way to resolve the matter.
I do not believe that, given the improved financial state of ANZ, the impetus, on the government's/majority shareholder's side, for a formal tie-up is anywhere near as strong as it was then; however, if ANZ were to suffer another downturn, resulting in the need for another capital injection, the NZ government could resurrect this potential avenue.
 
Lufthansa
Posts: 2303
Joined: Thu May 20, 1999 6:04 am

RE: Qantas Wins Appeal

Tue Oct 12, 2004 1:42 pm

Most governments try to stay long and far from using legislation for such business purposes.

To do so, usggests that not only are you playing favorites, democracy breaks down because certain companies enjoy the support of the government whilest any others, or potential others, do not. It is viewed as an area of gross inefficiency and recieved very very poorly by world capital markets (that is may create more damage than good through loss of international confidence in your economy).

The other question is, any such legislation may have the potential to be struck down by the high court, as it may prove discriminatory in nature.

Generally it is a hotspot governments try and say far away from... there is too much potential to make MP's look currupt and this may cost them the next election. If the couts say no under existing laws, i doubt your gonna see the laws changed for just one company. your going to need to have them changed for the whole economy.

[Edited 2004-10-12 06:43:32]
 
bluewhite
Posts: 313
Joined: Sun Jul 22, 2001 12:25 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 2:32 pm

Well, that would certainly lock up Australasia for them wouldn't it (both NZ/QF), with really just Virgin to compete realistically, and AO and the new start-up Jetstar Asia will compete ferociously in that segment. Good luck to the competition and also the consumers....

I can also see them being courted by both alliances and ultimately, it will be the long-term benefits gained ( dollars and cents ) that will determine the future direction of this entity, and which one it eventually joins.

BW
 
bill142
Posts: 7853
Joined: Wed Aug 04, 2004 1:50 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 3:48 pm

its all too little to late.. QF/NZ gave up on this when the court in NZ ruled against it.
 
Mulder
Posts: 61
Joined: Sat Sep 11, 2004 7:10 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 4:42 pm

Don't how much did they spend on lawyers.
 
bill142
Posts: 7853
Joined: Wed Aug 04, 2004 1:50 pm

RE: Qantas Wins Appeal

Tue Oct 12, 2004 8:47 pm

they probably have in house lawyers on the payroll... but I would suspect that some kind of outside lawyers were brought in who specialise in this kind of thing.
 
UA744KSFO
Posts: 411
Joined: Fri Dec 12, 2003 5:55 am

RE: Qantas Wins Appeal

Wed Oct 13, 2004 12:02 am

BA just sold its share in QF. However, this doesn't mean that ties between the two are bad.

As to QF joining Star, I would say it would be a good move for them, but almost too good. They would be partners with SA)">UA and AC (eliminating all competition on direct or 1-stop service to North America), and they would be partners with SQ and TG, meaning that there would be no serious competition to Southeast Asia. Africa would be unaffected since they already code share with SA. The major benefits would be an expanded European network via BKK and SIN (code sharing on TG and SQ) without having to go all the way to LHR and double back.

As to the merger of QF and NZ, I don't see it being resurrected. The NZ government is not budging on the issue, and as long as that happens, the merger is impracticable.
 
JoFMO
Posts: 1840
Joined: Wed Jul 14, 2004 1:55 am

RE: Qantas Wins Appeal

Wed Oct 13, 2004 12:47 am

@UA744KSFO

SQ and QF wouldn't dominate Australia to South East Asia if QF joins star. BA has direct flights SIN-SYD and MEL. Also EK operates some flights SIN-Australia. Malaysia has a lot of routes from KUL to Australia and so has QX. SO I don't see a competition problem with SQ and QF both in Star.

With all your other argument I fully agree.
 
UA744KSFO
Posts: 411
Joined: Fri Dec 12, 2003 5:55 am

RE: Qantas Wins Appeal

Wed Oct 13, 2004 12:50 am

Oh yes, I forgot that BA and EK have fifth freedom rights between SIN/BKK and Australia.

My bad  Smile

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