Qantas frequent flyer float plan put on ice
It is understood management will tell the board it does not want to pursue a partial float or trade sale of Qantas Loyalty after examining the option for the past nine months.
The decision is expected to be *supported by the board, which will meet next week ahead of the airline’s annual results release next Thursday.
Qantas has been exploring floating 30 to 40 per cent of the airline’s *10 million-member frequent flyer program in a process being run by Macquarie and Citi. Analysts estimate the entire *business is worth between $2.5 billion and $3 billion.
The move was part of a wider *strategic review. Other options, such as splitting the domestic and international business to attract more foreign investment, remain under consideration. But it is understood the frequent flyer portion of the review will be formally killed off after a board decision next week.
A trade or private equity sale of *Qantas Loyalty was ruled out earlier in the review because potential buyers wanted more than 50 per cent ownership of the business and the airline was unwilling to relinquish control.
Qantas chief executive Alan Joyce is expected to announce the decision on August 28 when the airline releases its annual results and gives the market an update on the structural review and its transformation program, which is aiming to cut $2 billion of costs over the next three years.
Qantas on Wednesday declined to comment when asked about the status of the loyalty business review.
The Australian Financial Review’s Street Talk column had on Wednesday reported a partial float appeared increasingly unlikely.