Originally Posted by
PoppaJo
PAG will shortly have a 48% stake and two board seats. I would assume that stake will increase as they will need more cash from around 2025 onwards.
The question is what do they want to to do with the Saab operation. Throw cash at it or reduce it significantly. I don’t think they planned on this Saab distraction when they signed the deal, it was all about 737s, and ridiculous financial projections from the operator.
The language used during some of their announcements is exactly that. They expected the Saab operation to continue to spin a profit even when they took their eye off it. The reality is they have spent the last decade spending tomorrow's capex and now they say its a drag on their financials.
10 years ago, Saab came to Rex and said they had the idea for an updated 340. Better engines, avionics and an APU. LKH essentially laughed in their faces. Now who's laughing? No support from GE, minimal support from Saab, federal government money all dried up. No pilots, no engines. But hey, it's Qantas' fault!