My insiders in the legal fraternity at QF, have said that they are seriously looking at the buying of over 80% of Toll shares.
Lt Dan,
There is one very large flaw in this possibility and it is called the A.C.C.C. There would have to be legislative change in parliament to allow such a monoplisation of domestic air travel. Regardless of what spin mangement at QF may try t put on it, JQ is a wholey owned subsidiary and that will form a serious part of the consideration and approval process undertaken by the ACCC.
Any such legislative change is highly unlikey to occur in consideration of the fact that the current levels of fuel prices have widely been stated as being over inflated due to speculators aiming to cash in on the coat tails of a weak US dollar together with an unfounded sentiment of current demand exceeding supply. High oil prices are a nasty beast but one that, from time to time, helps to tame the worlds unquenching thirst and addiction for it.
There is, simply put, too much emotion involved in the market of commodities and energy stocks and when people in the market take a chill pill, and the oil speculators pull their heads in i have little doubt that the oil price will stabilise and return to the long term projected $80-$100 per barrel.
I am certainly no expert on the matter and have gained a very basic understanding of the oil market through online research. I for one hope that things calm down soon, all of this talk of bankruptcy / insolvency is not good for sound sleeping and if it deosn't correct soon the next epidemic in the pilot fraternity will be ulcers.
The most noteworthy statements are those that say "if Virgin do nothing", now i know that management incompetency is not exactly in short supply within the entire Australian aviation community but i would think it nigh on the impossible that Virgin management will 'do nothing' in the face of current market pressures. Especially when the CEO has a personal stake of wealth in the success of the company..... after all it is rare that motives are unselfish in some way.
I for one do not have the expertise to speculate on what the future of any airline will be... i am just a pilot, but one thing i will definitely NOT do is panic before the relevant information has been presented in its entirety, that is not to say that i have not dusted off the CV yet but it would take something cataclysmic for it all to fall apart tomorrow, or even in the next 6-12 months.
Lets just focus on flying safe for now!
Ratter
