1A_Please
I'm sure the CEOs of the banks would just be delighted to invest $500M of shareholder funds into a company that has seen its value fall by 75% in 7 years.....not!!!
As I mentioned in my post, it would not happen and if it was to happen the banks would want to see profit.
You may or may not be aware that some banks already have a large stake in Qantas. From the 2013 Annual Report (page 165):
CBA: 225,886,843 ordinary shares (9.97% of issued shares) / approx $259M
NAB: 112,201,803 ordinary shares (5.01% of issued shares) / approx $129M
The dollar values are based on today's close on the theory that they still hold the same amount of shares since the issue of the report which might not be the case.
Now don't interpret my comments that because the banks own a stake in Qantas that it is a good buy. I am sure that they have made a lot of losses on various investments along the way to their major profits (CBA: $7B+, NAB: $5B+). And as for investment advice, I am not offering it and as all investment firms say, "this does not take into account your financial situation or goals, please consider if this product is right for you prior to making your decision" (or something to that extent).
404 Titan
What part of Virgin Australia (International) being 51% Australian owned don’t you understand. It is Virgin Australia (Domestic) that is majority owned by Etihad, Singapore Airlines and Air New Zealand. They are two separate companies with two separate listing on the ASX. Both airlines comply 100% with the foreign ownership rules.
I don't know much (or anything really) about foreign ownership laws, but I can not find a separate ASX listing for Virgin Australia (International), I can only see Virgin Australia Holdings (VAH). I note that in their annual report that Virgin Australia International is wholly owned subsidiary of VAH (page 134 of VAH 2013 Annual Report). Now as I already stated I don't know much about ownership laws but to me this would mean if you own 1% of VAH you would then own 1% of their subsidiaries because the subsidiaries make up the company. If I am wrong, I am sorry and please feel free to educate me a little on this topic if it is not to difficult (and not too much of a thread drift). Also, does anyone know why VAH have incorporated Skywest in Singapore (page 135)?
Lastly, on AIPA support on this issue:
To me the AIPA is there to support their members. Now obviously they have had their issues with Qantas management over time representing whilst representing their members interest, but they must see the current Qantas ownership limitations as something that hinders their members interest, hence their support on this topic. I am not saying a change on this current legislation will save Qantas or that they can't be saved without the change but if it is not in AIPA's interest (and in turn their members) for Qantas to fail despite any grievances with the management.
Just my humble opinion.
Last edited by Check_Thrust; 20th Nov 2013 at 18:36.
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