QF Solution on Offer

[WoodenEye]

According to this weekend’s AFR

QAN’s YTD performance is down 41.14% and is a ‘break up play’..

With a price to earnings ratio of just 7 times, it is little wonder that analysts have run the numbers on a breakdown of Qantas’ assets. Hmmm! spinning off Jetstar is one thing - but selling the frequent flyer programme is something else altogether.

Right now a strong Australian Dollar and continuing industrial action is keeping potential buyers at bay, but it won’t be this way forever. QAN’s billon dollar cash holdings and cheap valuation will become increasingly attractive to Private Equity if the Chinese economy cools and our resources backed $ depreciates accordingly.

If the workforce doesn’t have a seat at the table when the next Bid happens, expect that what is being proposed by AJ will seem relatively sanguine.

Right now, personaly believe that an employee backed bid by Australian led investors is a solution on offer.

Hopefully it is something the Aviation Unions are also on to.