Virgin's war chest to attract the lucrative corporate and government passenger sector

[bismarck]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Forgive my ignorance, but does QF have significant foreign ownership at the moment? Anywhere near the restrictions?

If not, why does it care what the restrictions are as clearly they're not trying to raise bucketloads of foreign capital through equity offering.

 

[markis10]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Forgive my ignorance, but does QF have significant foreign ownership at the moment? Anywhere near the restrictions?

If not, why does it care what the restrictions are as clearly they're not trying to raise bucketloads of foreign capital through equity offering.

Its close enough:

Pursuant to the ASX Listing Rules, an announcement was made to the ASX on 28 March 2013, advising that the Potential Level of Foreign Ownership at 6 March 2013 was 39.8%. Qantas is not required to further update the market unless the level of foreign ownership exceeds 44%. Qantas remains subject to an aggregate foreign ownership limit of 49%.

 

[bismarck]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Its close enough:

Pursuant to the ASX Listing Rules, an announcement was made to the ASX on 28 March 2013, advising that the Potential Level of Foreign Ownership at 6 March 2013 was 39.8%. Qantas is not required to further update the market unless the level of foreign ownership exceeds 44%. Qantas remains subject to an aggregate foreign ownership limit of 49%.

Thanks. Didn't realise it was quite that high. Expect it's mostly foreign private equity funds (TPG, KKR, Blackstone and the like) holding small-ish individual holdings but large in aggregate.

 

[markis10]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Thanks. Didn't realise it was quite that high. Expect it's mostly foreign private equity funds (TPG, KKR, Blackstone and the like) holding small-ish individual holdings but large in aggregate.

The two biggest owners are foreign, Franklin Resources and Capital Group

http://www.abc.net.au/news/linkable...holders-in-qantas2c-november-28-2013-data.jpg

 

[bismarck]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Which I think articulates how much of a blunt instrument a "foreign ownership" rule is.

Big difference between Etihad, SQ and AirNZ taking ~20% with clear business objectives in mind vs. an American mutual fund with $1T under management investing in an airline with (presumably) the sole objective of improving profitability.

 

[cove]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

The problem is that both AirNZ and Singapore Air are subject to their Government controls. With Qantas flying over Singapore for its flights to London no wonder all three airlines wanted to get involved to get feeder traffic into their planes and networks.