July 31, 2007 09:40am
THE Qantas board may be about to endorse a split of the company into four separate operating businesses.
Outgoing Qantas chairman Margaret Jackson may reveal more than just financial figures when she speaks during delivery of the airline's full year results in August, media reports say.
A review of Qantas' structuring by chief executive Geoff Dixon and chief financial officer Peter Gregg is near completion and proposes the creation of four separate businesses under the Qantas brand, the reports say today.
The proposal includes a plan to set up a "Qantas Lite" operation, which would own the main airline and Jetstar brands and would be responsible for its staff and ground operations.
There would be a "Fleet Co" business that would own and lease back the group of 154 planes valued at $4.4 billion.
"Loyalty Co" would be the new subsidiary in charge of the frequent flyer program.
The fourth business would be a stand alone operation, "Freight Co", which would take equity stakes in the air freight operators Australian Air Express and Startrack express.
It is expected Qantas would retain 100-per-ent ownership of all four businesses, but new investors could be brought in.
Trucking tycoon Lindsay Fox's Linfox could be a possible partner while Canada's Aeroplan has been suggested as a likely investor in "Loyalty Co", the reports say.
Qantas is planning the restructure after an $11 billion private equity bid by a consortium led by Macquarie Bank and the Texas Pacific group failed earlier this year.
The offer collapsed after institutional shareholders rejected a $5.45 per share offer as undervaluing the company.
Last week the airline announced it changes to the design of its flying kangaroo image and unveiled a new more spacious class for economy passengers on international flights.
Qantas shares closed yesterday two cents lower at $5.54.
- AAP
And if the mainline or Jetstar folds, the assets are neatly tucked away & employees will get none of it!!!