This play is called "Bait and switch".
1. Qantas International is making "losses".
2. Qantas Domestic is making "Profits".
The script will run something like this...................
On Tuesday morning Qantas will go to a trading halt.
The Qantas Board will announce that the loss making Qantas International will be put up for sale.
Minister Albanese will announce that the Government is open to amendments to the Qantas Sale Act to facilitate the transaction. The Opposition will concur.
Macquarie Bank will be retained as lead advisor to the deal.
The actual "deal" is beyond my knowledge at the moment. It may be a share split for shareholders, it could be a rights issue or a private placement by an overseas partner.
The intent however is plain : transfer control of the Qantas International operations and the international brand to a private operator. Most probably the staff will be left behind, probably the aircraft too.
The new operation will be staffed by short term contractors - Australian in name only.
The names behind the deal will be the APA Boyz club.
The second alternative is a complete Board and senior management spill.
There is a third alternative - "partnership" with a Chinese airline which will eat Qantas shareholders alive.
To put that all another way; if you expect the people who got you into this mess to get you out of it, you are mistaken.
Last edited by Sunfish; 9th Jun 2012 at 08:04.