Originally Posted by
43Inches
That still doesn't buy them a partner willing to pump funds in the likes of Bain and PAG, QFs big partners in crime such as emirates are also treading water, and QF burned its bridge with SQ. On that point you will probably find SQ probably getting cosy with either VA or Rex soon for on carriage. Share dilution is not something you do willy nilly, if the books really start looking bad the share price is likely to tank. My thoughts are that VA is going to seriously challenge QF in the domestic scene over the coming years, Rex will eke out a niche like it did with regional services. QF will have to temper its fever pitched hold the line at 60% however as it will be bleeding cash to do so.
You don't seem to understand how institutional placements work - why would you look for a partner when you can just get cash?
And share dilution isn't an issue because of those share buy backs, much maligned as they were from some quarters. The buy-backs afford Qantas significant flexibility in re-issuing shares via equity raisings. They could likely raise $1 billion next month without raising a sweat.
And it's probably worth noting that Qantas, even on the heels of those pretty ordinary HY1 results, is trading at a 37 percent premium to the placement price of the last institutional placement. As troubling as the last two years has been for the industry I'd much rather be in Qantas's shoes than Rex’s, or Bonza's (thongs, most likely for them).