Can you elaborate please.
Cheers
Remember this is a Rumour Network. The CEO board has a responsibility to investors to maximise profits for shareholders and short term profits and often seen over the unknown longer term, so if there is an opportunity to be gained they will.
The basic outline is this -
Conglomerate (international) sees an opportunity to gain a controlling interest in QAN as listed on ASX. QF remains as it is but the entire JQ operation becomes the property of the conglomerate and JQ becomes an unlisted private corporation (without the need to be an (primarily) Australian based operation. The new company walks away with JQ leaving QF to remain more or less as it is.
Current Qantas market Capital Value is around $5B
AJ wrote back QF assets but book value still shows Nett Value of $3b with cash in bank. Buys into QF at a 100% premium but still netts a huge profit potential - how?
The new JQ.
Modern fleet of 787 and A320
Rapid expansion of low cost operation international routes targeting QF routes .
SYD-LAX, MEL-LAX, BNE-LAX, AKL-LAX, AKL-JFK SYD-LHR SYD-SCL SYD-JNB
SYD/BNE/MEL/ADL/PER codeshare ops with another operator (New parent?) airline to provide LCC one stop connections to a range of Euro destinations
JQ Australian domestic gain Business class, Business international moves upmarket (like Air ASia X)
No Qantas Act to deal with
Capitalise on QF's #1 money making routes between USA-Australia
Target the ME alliance networks by going the LCC route
Has benefit of Australia domestic connections
Lower Costs
Modern Fleet
Large number of Foreign workers will significantly reduce costs
This leaves QF struggling against another huge and larger International and Domestic competitor but with a large book profit. CEO looks smart and hails it a win win as QF can now focus on its core airline operation and reinvest in its future. CEO walks away with large bonus
Conglomerate has all JQ bad debts/losses worn by QF prior to effective demerger. Buys JQ for way less than its real value. Leaves QF up the river.
Think it through before you say it wont happen. Its already being planned and talked about. It may not eventuate but then neither may JQ HKG.
Market research has been done with lead in fares SYD-Europe @ $1499 and SYD-LAX @$999 and the response was that they can capture a very large % of market share
You can think very hard who might be behind this.