Well it’s another reason why Alan wants Virgin out. Effectively would double Jetstar’s value.
Jetstar total group EBIT is around 350-400m. This contains all the loss making ventures of Pacific, Vietnam, Japan, so this could be anywhere up to 100m in loss, capex.
Offloading 50% would be a multi billion dollar deal. Offloading half without Virgin, would be eye watering.
To please regulators, and selling say 75%, well you can see why Alan wants Virgin gone. Would give the parent business enormous firepower for the next few decades. Netting many billions from a sale will put off any competitor even contemplating arriving down under. It would become the worlds strongest carrier, debt free, high margins, and full control of the majority of slots, property.
Much work would be done around securing as many East Coast Virgin slots and terminals as possible, to enable any other entrant an impossible task of building a network. The entire WA charter operation would be picked up almost the next day.
I would expect QF to ramp up the noise around Virgins funding as time goes along. If QF promises to replace every Aircraft that Virgin had in the market, like for like, with a large chunk of tech, cabin, engineering crew, well that could pose problems for any Virgin funding attempt.
Last edited by wheels_down; 10th Apr 2020 at 02:41.