Deal-starved private equity operators and investment banks might think this morning about putting Qantas Airways high on their agenda. If, after 21 days of negotiations and a possible arbitration hearing, Qantas can’t obtain a deal with its workforce that enables it to be competitive then maybe it's time for another group to operate the airline.
After all, Qantas directors in 2007 recommended a $5.60 bid from a private equity group, but it was narrowly rejected by shareholders. The bid was highly leveraged and the subsequent global financial crisis might have seen a private equity-owned Qantas go under. But the shares closed on Friday at $1.54, 62 per cent down from the offer price in 2007.