Is QFi getting any closer to being sold?

[scheps]

Just wondering what your take is on this topic out there and its consequences. I am sure it affects us all in different ways.......

 

[moa999]

Where have you read this??
All QF has announced is a management/ financial separation of QFi and QFd - very different to a sale.

IMHO it is very unlikely that QFi will be sold.
1. To keep its air rights the buyer would not to be at least 51% Australian controlled -- not many around
2. Very difficult to fully separate - so many shared components between QFd and QFi
3. To sell QFi would destroy a lot of value for QF FF - who wants to redeem points just for QFd/ JQ

 

[harvyk]

I don't believe QFi is been sold, what I believe is happening is QFi is been split off from QF and becoming a company in it's own right with it's own management. It could make for interesting times as it means QFi can either prosper or die without affecting QFd which is the current profitable part of the business.

I expect that what will happen is QFi will effectively become a "qantas franchise", in that it has permission to use the QF logo's, loyalty schemes, and take direction from QF from time to time, but it will still be it's own independent business, most likely in a similar arrangement to some of the QFlink airlines eg Sunstate Airlines.

I expect from a pax point of view, we won't actually see much changes. QFi will be able to sub for QFd as required, much like a QFLink plane can sub for a QF plane and vv.

 

[scheps]

I dont have any validated source. I had no idea it was getting sold either but my sister just told me it might, but this is based on her friend who has apparently... a friend with inside scoop. So i thought, if anyone is going to know, then it would be here. And the consequences, at least for me, is quite devestating and i am sure will be similar for a lot of others.

Would the split not be the first step to selling? given it is not as profitable and there are strange people at the helm? that way the national icon remains standing?

Maybe its the insurance companies that are pushing this rumour ... ?

 

[harvyk]

Would the split not be the first step to selling? given it is not as profitable and there are strange people at the helm? that way the national icon remains standing?

The QF act makes selling QFi very difficult. Basically the act states that 51% of QF must be owned by Australian's.

What you might find is a lawyer somewhere has found loophole in the act which basically means QFi can't be sold to overseas investors, but QFd (the profitable side of the business) can, because when the QF act came about, QF was only an international airline, it had no dom ops. If they have found such a loophole it could explain this split.

 

[scheps]

But regardless who it's sold to, future flights which are already booked or QFF points could be affected adversely couldn't it?

 

[harvyk]

But regardless who it's sold to, future flights which are already booked or QFF points could be affected adversely couldn't it?

Unlikely...
Ultimately from a pax point of view it's will most likely be business as usual. They would be crazy not to honour existing bookings or points arrangements.

 

[moa999]

QF Sale Act cam in when the Govt sold/floated its stake in Qantas.
This was after the Qantas and Australia/TAA merger.

Now exactly what the Sale aCt covers is not totally clear.

 

[freepyjamas]

Hands up who trusts Joyce and the board to put the long-term interests of the company ahead of their own interests?

(my hands are down. in fact, as soon as I've stopped typing, I'm sitting on them)

 

[harvyk]

QF Sale Act cam in when the Govt sold/floated its stake in Qantas.
This was after the Qantas and Australia/TAA merger.

Now exactly what the Sale aCt covers is not totally clear.

Just looked it up, your right, the QF Sale Act came about in 1993, QF purchase TN in 1992. That said, I believe QF didn't actually offer dom flights under their own branding until 1994 (coincidentally enough, the year of my first QF flight). Given the name of the Act it seems they cared more about QF's int ops, as TN was still it's "own airline" from a public branding point of view.

Either way no doubt QF has a team of lawyer consistently looking at the QF Act working out ways to get around it.

 

[harvyk]

Hands up who trusts Joyce and the board to put the long-term interests of the company ahead of their own interests?

(my hands are down. in fact, as soon as I've stopped typing, I'm sitting on them)

Well, I certainly don't think the long term interests of the company are something Joyce really cares about (beyond a few audio grabs for newspapers and media releases). That said technically he is there to return maximum profit to shareholders, and since shareholders and bean counters typically tend to look quarter to quarter rather than big picture, I believe Joyce is simply providing them with what they want.

 

[jetlagger]

Well, I certainly don't think the long term interests of the company are something Joyce really cares about (beyond a few audio grabs for newspapers and media releases). That said technically he is there to return maximum profit to shareholders, and since shareholders and bean counters typically tend to look quarter to quarter rather than big picture, I believe Joyce is simply providing them with what they want.

Perhaps Joyce & the rest of the 'Old Boy" Cronies could do a 'tie up" with Gillard & her Crony Govt. & take one of those one star flights to 'Never Never Land"... Surely be more useful, popular & profitable there.. Any supporters could join the ride..