User avatar
PanAm_DC10
Crew
Topic Author
Posts: 3795
Joined: Wed Aug 23, 2000 7:37 am

Qantas Wants To Buy Into Adam Air

Sun Feb 05, 2006 3:53 pm

I came across the following report and it struck me as interesting given the QF Groups plans for JQ and Jestar Asia. I am not sure as to the merit of the report though any additional information would be appreciated.

Fair use excerpt

By Naila Firdausi
Feb. 4 (Bloomberg) -- PT Adam Skyconnection Airlines, an Indonesian budget carrier, is in talks to sell a stake to Australia's Qantas Airways Ltd, Adam's President Director Adam Suherman said.

Adam Air, as the Jakarta-based airline is known, said Qantas's Chief Executive Officer Geoff Dixon was in Jakarta for two days through yesterday and visited the company's facility.

``The government has a limit of up to a 49 percent stake of foreign ownership in Indonesian airlines, so it will not exceed that limit,'' Suherman said in a telephone interview. Qantas ``wants a bigger stake, but we want it to be not too much. It will probably be in the 20% range"


Qantas executives met with Adam Air counterparts over the past days ``just as they do with a whole range of airlines from time to time,'' a spokeswoman in Sydney said today, citing Chief Financial Officer Peter Gregg. She didn't comment any further.

I thought QF would focus more on Jetstar Asia, what benefits could QF hope to gain from such an investment if this report is valid?

Regards, PanAm_DC10

Source: http://www.bloomberg.com
Ask the impossible to achieve the best possible
 
HB-IWC
Posts: 4033
Joined: Fri Sep 22, 2000 1:09 am

RE: Qantas Wants To Buy Into Adam Air

Sun Feb 05, 2006 6:53 pm

Unless Qantas wants Adam Air to cooperate with the Jetstar Asia/ValuAir combination, I don't really see the point of such a strategic investment.

Although better than the other Indonesian LCC, Lion Air, Adam Air isn't much to talk about either. The airline started operations with B734 and B735 promising to bring an end to the B732 era in Indonesia, but the company has since reneged on this promise, and more than half its current fleet consists of over-aged B732s, sourced from more companies than I care to think about. Moreover, Adam hasn't been supporting the best of operational reliability and customer service.

Reading the full article in Jakarta Post the other day, I couldn't help but thinking that Adam Air is taking its own wishes for reality with this story. They have previously been announcing an IPO in Singapore, but nothing has been heard about that story either.
 
User avatar
PanAm_DC10
Crew
Topic Author
Posts: 3795
Joined: Wed Aug 23, 2000 7:37 am

RE: Qantas Wants To Buy Into Adam Air

Mon Feb 06, 2006 7:30 pm

Quoting HB-IWC (Reply 1):
I couldn't help but thinking that Adam Air is taking its own wishes for reality with this story.

Thank you HB-IWC. That was initially what I thought until I saw several reports though in each case it appears to be the people from Adam Air doing the talking. With Jetstar Asia, I feel QF should stay with them and with a 49% cap on Foreign ownership I just don't see the benefit for the QF Group in investing in another such venture in that region.

Thanks again for the response.

Regards, PanAm_DC10
Ask the impossible to achieve the best possible
 
bill142
Posts: 7853
Joined: Wed Aug 04, 2004 1:50 pm

RE: Qantas Wants To Buy Into Adam Air

Mon Feb 06, 2006 7:42 pm

They are looking to buy in because Jetstar can't get authority to operate into Indonesia. So they are going to circumvent the process and simply buy an Indonesian airlie. They thought that buying Valuair would get them into Indonesia but that didn't work.
 
'Longreach'
Posts: 457
Joined: Fri Jul 27, 2001 11:36 pm

RE: Qantas Wants To Buy Into Adam Air

Mon Feb 06, 2006 8:08 pm

I also read on the other thread (Indonesian Airlines) that Qantas will offload their 734's onto Adam Air. They want to get their hands on the Jakarta and Surabaya routes.
 
HB-IWC
Posts: 4033
Joined: Fri Sep 22, 2000 1:09 am

RE: Qantas Wants To Buy Into Adam Air

Mon Feb 06, 2006 8:35 pm

Quoting Bill142 (Reply 3):
They thought that buying Valuair would get them into Indonesia but that didn't work.

ValuAir flies thrice daily between Singapore and Jakarta, in addition to its flights into Surabaya, while JetStar Asia has the rights to operate to Denpasar, Bali, so I don't really see the point there.
 
RichardJF
Posts: 565
Joined: Tue Mar 06, 2001 7:07 pm

RE: Qantas Wants To Buy Into Adam Air

Wed Feb 08, 2006 11:24 am

The entire Jetstar Asia exercise seemed misguided from the start and QF should just offload it. It's not likely to achieve anything for them other than looking silly in front of competitors like SQ and CX.