A Fable
No Qantas plan to exit Jetstar Asia despite approach
Quote:
Qantas is understood to have no plans to sell its 49 per cent stake in Singapore-based budget arm Jetstar Asia to Indonesia’s Lion Air Group.
Reuters on Tuesday reported the pair were in talks about a sale. However Fairfax Media understands Lion Air made an unsolicited approach to Qantas about the possibility of a deal but there are no ongoing talks between the pair.
This is not the first time another airline has expressed interest in Jetstar Asia. In 2010, Air Asia and Jetstar held talks about deepening their relationship through a joint aircraft purchasing agreement.
Qantas is undertaking a structural review and has not ruled out the possibility of selling a portion of its frequent flyer business or Jetstar as part of that. An update on the review is expected alongside the release of the airline’s full-year results in August.
However, the sale of its 49 per cent stake in Jetstar Asia would leave it with no stake in the Singapore-based carrier, which it uses as a hub for Asian connections from Qantas and Jetstar flights from Australia to Singapore.
Qantas has taken on multiple partners in its Jetstar Japan and Jetstar Hong Kong businesses but maintains a stake in those along with branding rights.
Read more: No Qantas plan to exit Jetstar Asia despite approach
Sounds like the price being offered isn't enough to maintain face?