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TIMMEEEE
20th Jun 2005, 10:54
Qantas-Singapore merger stalls on runway
7:10 PM June 20

Singapore Airlines has expressed little interest in a proposed merger with Qantas that the Australian Government has floated, saying it will not happen any time soon.

A Singapore Airlines spokesman says the proposal outlined by the Trade Minister Mark Vaile and welcomed by Qantas, will not do anything to satisfy consumers who want more competition and choice on the trans-Pacific route.

Last week, the Government rejected a bid by Singapore Airlines gain access to the lucrative Australia-US route, which is controlled by Qantas and United Airlines.

Qantas had argued such a move would cut deeply into its profits, and cost thousands of Australian jobs.

- AFP
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What would we expect, the Singaporeans to say they're interested so the share price will improve and the speculators move in to drive up the share price???
Hardly !!!!
These guys will sit on their hands, deny any forseeable interest vehemently and suddenly jump in one day when the share price suits them and them alone.

Keg
20th Jun 2005, 13:26
Timee, wha't the bet that SQ jump in AFTER they've started flying the Pacific and QF's price has dropped further than what it is now!! That'd be the time to do it! :E

We live in interesting times! :{

Chimbu chuckles
20th Jun 2005, 16:14
Is it just me or was it not so long ago that this 'Govt' refused to let SQ buy a chunk of AN?

Now they want SQ to buy a chunk of QF?

Conspiracy theories anyone?

scrubed
20th Jun 2005, 18:27
Wasn't it was the sheep-shaggers who cut SIA out of the action?

I thought they exercised first-dibs on the other half. Kind of like "It's mine, you can't have it" in the playground, kinda stuff.

The Singaporeans went away and sulked because they were prevented from buying something Australian and showing how much better they are. And they were gagging to show the round-eyes up.

Now they're sulking again but they'll be back, they have to. Their relevance is fast diminishing with longer-range aircraft numbers increasing.

Bring it on..... :ok:

Sunfish
20th Jun 2005, 21:58
The Singaporeans are simply showing their contempt for QF and the Australian Government, and rightly so.

There is no point in anyone trying to buy QF because QF have a direct line into Parliament and are protected (as is SIA).

It's a variant of the "poison pill" takeover defence. Anyone thinking of buying QF will quickly realise that there are a raft of Government conditions attached and that the management of QF will pull whatever Government strings are needed to protect themselves, because QF is run for the benefit of its (NSW based) management.

I watched another Australian household name run itself into the ground this way - to the detriment of the shareholders and employees.

TIMMEEEE
20th Jun 2005, 23:35
Agree with most, but at the end of the day Cumm-Too-Soon or whatever his name was really lost face when he missed out on buying into Ansett when the Kiwi's exercised their first right privileges of purchasing the remainder of Ansett (for $200m extra!).

This new guy in SQ will do his damndest to pull it off when the timing is right to regain that lost face.
This will make his crew look like the champions and be heros in the business community of Singapore.

Agree - SQ is becoming increasingly irrelevant when long range aircraft will be able to overfly Singapore.
That alone will have a major impact on their economy.
Hence these guys will definitely want to buy into another enterprise that's at least profitable.

AIRWAY
22nd Jun 2005, 09:38
From the PM Mailing List, might be of interest:

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JOURNALIST:

Would you be able to tell us Prime Minister when the Government might look to revisit Singapore Airlineís request to get into trans-Pacific market? Obviously the Governmentís looking at aviation policy broadly. When do you think, if at all, the Government might be prepared to have another look at Singapore Airlineís bid?

PRIME MINISTER:

We have never at any stage said finally and definitely no to that. What I indicated and Iím glad you asked me the question. What I indicated when the Singaporean Prime Minister rang me a couple of weeks ago, I indicated to him that we werenít in a position to take a decision on this issue within the next few weeks, and it did have to be looked at in the context of overall aviation policy, including the question of whether Singapore Airlines and Qantas were to remain as separate companies for an indefinite period of time. This is a decision thatís got to be taken into context of all of those circumstances, but the idea that we have shut the door permanently on some kind of accommodation in relation to Singapore Airlines is not correct. But it is true that you canít look at that issue in isolation from consideration of whether the companies might come together in the future, and also a comparison
of the relative levels of government assistance that are provided to different airlines. Thereís not a lot provided in Australia. So the issue is certainly not going to be the subject of a decision in the next few weeks, but the whole question has not been finally taken off the table either.

JOURNALIST:

Do the deliberations though include considering Qantasí foreign ownership pact, is that in this?

PRIME MINISTER:

I think all of those things have to be looked at.

[ends]

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TIMMEEEE
22nd Jun 2005, 22:08
Hot off the press.
Talk about a turn around...........is that the asian way???

Singapore Airlines warms to Qantas merger
7:45 PM June 22

Singapore Airlines said a merger with Qantas was an "interesting idea", following Prime Minister John Howard's comments that increased speculation about a potential tie-up.

Two days after expressing little interest in merging with its Australian rival, Singapore Airlines also said industry consolidation was "logical" although it continued to emphasise such reforms remained a long way off.

"In theory, consolidation and rationalisation in the airline industry will be logical, but the regulatory framework in which the international airline industry operates is not ready," Singapore Airlines spokesman Stephen Forshaw said in an emailed statement to AFP.

"A merger between Singapore Airlines and Qantas is an interesting idea, but very complex one.

"Both companies are publicly listed entities and there would be many issues to be addressed.

"Reforms of this sort need to be global and will take a long time."

In the meantime, Mr Forshaw said Singapore Airlines should be given its long-awaited opportunity to compete with Qantas on the lucrative Australia-US route.

"Consumers and the tourism industry shouldn't be waiting indefinitely for their concerns about competition on the trans-Pacific route to be addressed," he said.

Mr Howard raised the prospect of a merger between the two airlines when he was asked about Australia's refusal last week to grant Singapore Airlines access to the Australia-US route.

He said the decision was not final but could not be reviewed in the short-term as the Government was examining factors that would impact on its overall transport policy.

He said these factors included "the question of whether Singapore Airlines and Qantas were to remain as separate companies for an indefinite period of time".

"This is a decision that's got to be taken in the context of all of those circumstances but the idea that we have shut the door permanently on some kind of accommodation in relation to Singapore Airlines is not correct," he said.