Qantas: Here We Go Again
CEO Alan Joyce Cashed-up Qantas in mood for a merger
Source: Bloomberg
QANTAS chief Alan Joyce yesterday flagged the possibility the airline may soon be on the prowl for a merger.
He told a lunch in Sydney the airline's strong balance sheet would put it in a position to be the lead partner in any takeover.
His remarks flag a marked shift in position since plans to create one of the world's biggest carriers by merging with British Airways collapsed two years ago over the British carrier's debts.
Since then Qantas has developed loose alliances including a code share deal with Middle-East carrier Etihad, and Jetstar's partnership with Malaysian-based Air Asia where both negotiate discounts by lodging joint orders for aircraft, fuel and spare parts.
Yesterday, in his first speech since the volcanic ash crisis grounded planes and stopped flights to Europe, Mr Joyce acknowledged the crisis had hurt the finances of several European airlines.
Asked how the industry might look in the future, he replied: "Consolidation has to occur, there are too many players.
"Qantas is in a position where it can participate in that when it occurs," Mr Joyce said, emphasising that in any tie-up, Qantas would keep its name and remain distinctly Australian.
"That point is not negotiable and it's so important," he told the audience.
"I think that Qantas could use its balance sheet strength and financial strength to take the lead once there are regulatory changes."
Addressing the Australia-Israel Chamber of Commerce Association, Mr Joyce said Qantas would resume flights to Europe last night.
At a press conference afterwards, he said the final costs of the shutdown had yet to be counted but would not affect the airline's profit forecast.