So which Asian carrier is Qantas buying?!!

[pauly7]

Qantas being taken over has definitely taken the backseat with this announcement!

Any one with the inside word on who Qantas is buying into?

Interestingly they have ruled out franchising out the brand already so we won't be seeing a Qantas Asia brand...

Qantas to invest in Asian carrier

By AAP and staff writers
January 23, 2007 03:27pm

QANTAS Airways said today that it plans to invest a double-digit million-dollar sum in an Asian carrier by the end of June.
"We are very close to announcing a substantial investment in the region,'' Qantas chief financial officer Peter Gregg said at an aviation conference in Singapore today.

"We are in talks with a carrier and there will be an announcement in the next few weeks.

"We don't intend to license our brand, we intend to take ownership,'' he added, without naming the target carrier.


Full story:
Qantas to invest in Asian carrier | NEWS.com.au Business

 

[simongr]

Not sure "buying" is the right word. Base price of Qf is$11BN - they want to invest $11MN - big difference

 

[jakeseven7]

it says buying into....

how about malaysian DJ wouldn't like that lol

seriously though, is it safe to rule out the star alliance airlines? and perhaps for the level of investment they are touting probably the large full service / govt carriers as well?

Maybe it is Air Asia (GULP!).... Been a bit of news about them and Jetstar Asia recently... Interesting they say 'take ownership' does that mean control? or combining with another group to do so?

Very interesting - John K should start a competition to guess the airline they are buying into!

 

[Evan]

What kind of a company do you buy for less than one hundred million ??? Must be small, maybe the other 51% of jetstar asia ?

Evan

 

[Mal]

Air Asia would be my first pick, although being based in Malaysia (and having Govt ownership?) could make that investment tricky.

Tiger would actually be higher in my list than Air Asia, but I can see big issues with Singapore Airlines in that equation.

I'm sure it will be a low cost carrier in Asia that flies numerous routes within Asia and possibly to Australia. It won't be a one route wonder or someone like Oasis. I can't see Qantas associating with an accident prone carrier either...

 

[jakeseven7]

What kind of a company do you buy for less than one hundred million ??? Must be small, maybe the other 51% of jetstar asia ?

Evan

Well they couldn't even if they wanted to obviously with the foreign ownership laws...

JQ has just announced that they will be flying to KL 3 times weekly.... clue? or unrelated... lol I have no idea..

 

[jakeseven7]

I'm sure it will be a low cost carrier in Asia that flies numerous routes within Asia and possibly to Australia. It won't be a one route wonder or someone like Oasis. I can't see Qantas associating with an accident prone carrier either...

That certainly narrows it down in Asia Cross out all the Indonesian carriers

 

[Evan]

Oh, i wasn't aware or even thinking about think like foreign ownership laws, thats a good point !

I think the KL connection is just chance, i think they see Jetstar could make money out of it and i agree, its a route with decent numbers and growing but no mainline QF service as yet.

Really got me thinking now, has to be small for the money involved, then again somebody with new lease only fleet it may be larger than we think. (If you only lease planes and down own any, or checkin facilities etc then you could be reasonably large without costing too much)

Evan

 

[Altair]

That certainly narrows it down in Asia Cross out all the Indonesian carriers

Well last year they were talking about Adam Air to get around the Indonesian restictions on budget airlines flying into their country....
They could re-brand the airline but I would suggest that they avoid DeathStar....

Ignore the above as I actually readn, not scanned the article....Adam Air is out.

 

[Shano]

Today's SMH is suggesting that airline in question is Ho Chi Minh City's Pacific Airlines.

 

[bravoecho1]

The Vietnamese government has been very public about their intention to sell their 30% stake for US$50m.

Thats where my money is.

 

[serfty]

... Thats where my money is.

So will Qantas's ...

 

[Standby]

From the Pacific Airlines web site

discounted tickets for beneficiaries of social welfare (Vietnam’s hero parents; elderly revolutionary cadres; wounded soldiers; relatives and family members of martyrs; victims of Agent Orange; senior citizens; adolescents…)

I looked everywhere and couldnt find an elderly revolutionary cadre fare anywhere

 

[pauly7]

Pacific Airlines... I think I saw one of their aircraft when I was in Vietnam last... Well, any extension of the QF group is welcome - to burn points!

 

[N860CR]

So if Qantas were to take a large piece of BL, we could potentially expect to see "Jetstar" services operating within Vietnam which would allow the SYD-SGN JQ service to connect to a SGN-HAN BL service (JQ Codeshare) which would probably mean Qantas could end their codeshare arrangements with VN (SYD-SGN-HAN). I'm sure that's not the motive for the investment, but it would well end up happening.

Seems a little odd that Qantas would want its name on a pretty small, unknown airline with a mixed fleet of aged aircraft. Unless they plan to turn it into another Jetstar arm.

 

[pauly7]

So if Qantas were to take a large piece of BL, we could potentially expect to see "Jetstar" services operating within Vietnam which would allow the SYD-SGN JQ service to connect to a SGN-HAN BL service (JQ Codeshare) which would probably mean Qantas could end their codeshare arrangements with VN (SYD-SGN-HAN). I'm sure that's not the motive for the investment, but it would well end up happening.

Seems a little odd that Qantas would want its name on a pretty small, unknown airline with a mixed fleet of aged aircraft. Unless they plan to turn it into another Jetstar arm.

Well JQ fly VN routes now - I was expecting QF to end the codeshare a couple of months back actually, so will see.

Not really that odd, they want Pacifics operating certificate and as the articles allude to they have learned from Jetstar Asia that starting up a pure international airline in Asia isn't that easy with the landing right issues -> within Vietnam there is the opportunity to build a profitable domestic network to support an international expansion - and as you say link up with Jetstar Asia.

 

[Shano]

More articles in today's Australian that talks are underway with Pacific Airlines

QANTAS is in talks to buy a stake in Vietnam's second-largest carrier, Pacific Airlines, which is transforming itself into a low-cost airline, a Pacific Airlines official says.

Article #1

Article #2

 

[JohnK]

Agreement has been signed and should be finalised in the next few months.

Qantas Airways acquires 30 pct stake in Vietnam's Pacific Airlines

SYDNEY (XFN-ASIA) - Qantas Airways Ltd said it has signed an agreement with the Vietnamese government to purchase a 30 pct stake in Pacific Airlines, Vietnam's second largest carrier.

Australia's flag carrier said the stake is expected to be finalized within the next few months.

Qantas chief financial executive Peter Gregg said the investment will support his airline's budget carrier Jetstar's growth strategy and enable an extension further into Southeast Asia.

More...