B A Lert
9th May 2007, 02:11
Ho hum! Don't Dixon and Coy get the message yet?
We're on right path: Qantas boss
By Steve Creedy
May 09, 2007 12:00am
Article from: The Australian
* Qantas CEO Geoff Dixon to stay at helm
* The airline's shares closed 16c down at $5.22
* Jetstar business to be expanded
QANTAS chief executive Geoff Dixon vowed last night to accelerate plans to revitalise the national carrier after Airline Partners Australia finally drove a stake through the heart of its $11.1billion bid.
Mr Dixon said he intended to stay at the helm of Qantas and believed that the takeover, although it had failed, had endorsed the strength of management's existing plans and strategies.
News that APA had abandoned its latest attempt to resurrect its bid for Qantas, failed to produce the crash in the airline's shares that had been predicted by the bidders and chairman Margaret Jackson.
The share price closed down 16 cents at $5.22 as more than 8 per cent of the company was traded. Analysts predicted shares would eventually settle around the $5 mark or slightly below.
Jetstar expansion to go ahead
Mr Dixon said Qantas management would now push ahead with plans including the expansion of low-cost offshoot Jetstar, growing the airline's frequent-flyer program, buying into overseas carriers and developing freight businesses.
"The bidders made it very plain that they were making the offer for Qantas to implement the strategic plan Qantas was undertaking," Mr Dixon said. "We intend to continue with that plan."
APA abandoned its latest attempt to find a legal loophole and yesterday was showing no signs of any immediate moves to start the bid process again. However it did leave the option open.
The consortium had considered a quick follow-on bid if it could fast-track the process but hopes of this were dashed when Treasurer Peter Costello said on Monday that they would have to start the bid from scratch.
Ms Jackson added to the obstacles when she made it clear yesterday that any new bid would be treated as a completely new matter.
The decision to kill the bid ended four days of farce in which the deal had been deemed dead, brought back to life, deemed dead again and then resurrected once more.
The consortium's final attempt saw it seize on a clause in the offer statement it claimed entitled it to count all the shares of investors who had lodged only partial acceptances before last Friday's 7pm deadline. It said this would boost acceptances from a deal-busting 46 per cent to more than 60 per cent.
Yesterday APA conceded that the legal interpretation of its scheme remained unclear.
"Given the amount of time it would take were the issue to be litigated, and the consequent uncertainty for both Qantas and its shareholders, APA has decided not to pursue arguments that it did achieve voting power by the offer deadline on May 4," APA said.
Jackson stands firm
Ms Jackson gave no indication yesterday that she would succumb to pressure to stand down, despite a belief in the investment community that her position is untenable because of her strong support for the bid.
She said the bid period had been "extremely difficult" and the foremost priority of the board and management now was the continuing successful operation of the company.
Continuity and stability were vital, she said.
The board met yesterday and said it would soon hold another meeting to discuss the airline's three-year growth strategy.
Responding to criticism that its foreign share registry had exceeded the 49 per cent foreign ownership limit by as much as 16 per cent, Qantas said it had accelerated a formal reconciliation of its foreign ownership.
Eyes on foreign ownership
Mr Costello reiterated the Government's view yesterday that the Qantas board had a legal obligation to restrict foreign ownership, and would need to have a good explanation if it had failed to do so.
The airline said heavy trading in Qantas shares had made this more difficult than usual.
"The process is being accelerated and Qantas will advise the market as necessary," it said.
Unions applauded the bid's death and warned management it must move quickly to address the sagging morale of the company's workers.
Transport Workers Union airlines spokesman Scott Connolly said morale had been devastated by the uncertainty generated over the past six months and was the lowest he had seen at the airline.
Management and the board had to demonstrate they were focused on running the company and were committed to Qantas workers and their families.
"We feel they certainly have taken their eye off the ball, the management team has, in the past six months," Mr Connolly said.
The Australian and International Pilots Association said the bid's failure should provide the catalyst for rebuilding "a sustainable and world-class airline".
We're on right path: Qantas boss
By Steve Creedy
May 09, 2007 12:00am
Article from: The Australian
* Qantas CEO Geoff Dixon to stay at helm
* The airline's shares closed 16c down at $5.22
* Jetstar business to be expanded
QANTAS chief executive Geoff Dixon vowed last night to accelerate plans to revitalise the national carrier after Airline Partners Australia finally drove a stake through the heart of its $11.1billion bid.
Mr Dixon said he intended to stay at the helm of Qantas and believed that the takeover, although it had failed, had endorsed the strength of management's existing plans and strategies.
News that APA had abandoned its latest attempt to resurrect its bid for Qantas, failed to produce the crash in the airline's shares that had been predicted by the bidders and chairman Margaret Jackson.
The share price closed down 16 cents at $5.22 as more than 8 per cent of the company was traded. Analysts predicted shares would eventually settle around the $5 mark or slightly below.
Jetstar expansion to go ahead
Mr Dixon said Qantas management would now push ahead with plans including the expansion of low-cost offshoot Jetstar, growing the airline's frequent-flyer program, buying into overseas carriers and developing freight businesses.
"The bidders made it very plain that they were making the offer for Qantas to implement the strategic plan Qantas was undertaking," Mr Dixon said. "We intend to continue with that plan."
APA abandoned its latest attempt to find a legal loophole and yesterday was showing no signs of any immediate moves to start the bid process again. However it did leave the option open.
The consortium had considered a quick follow-on bid if it could fast-track the process but hopes of this were dashed when Treasurer Peter Costello said on Monday that they would have to start the bid from scratch.
Ms Jackson added to the obstacles when she made it clear yesterday that any new bid would be treated as a completely new matter.
The decision to kill the bid ended four days of farce in which the deal had been deemed dead, brought back to life, deemed dead again and then resurrected once more.
The consortium's final attempt saw it seize on a clause in the offer statement it claimed entitled it to count all the shares of investors who had lodged only partial acceptances before last Friday's 7pm deadline. It said this would boost acceptances from a deal-busting 46 per cent to more than 60 per cent.
Yesterday APA conceded that the legal interpretation of its scheme remained unclear.
"Given the amount of time it would take were the issue to be litigated, and the consequent uncertainty for both Qantas and its shareholders, APA has decided not to pursue arguments that it did achieve voting power by the offer deadline on May 4," APA said.
Jackson stands firm
Ms Jackson gave no indication yesterday that she would succumb to pressure to stand down, despite a belief in the investment community that her position is untenable because of her strong support for the bid.
She said the bid period had been "extremely difficult" and the foremost priority of the board and management now was the continuing successful operation of the company.
Continuity and stability were vital, she said.
The board met yesterday and said it would soon hold another meeting to discuss the airline's three-year growth strategy.
Responding to criticism that its foreign share registry had exceeded the 49 per cent foreign ownership limit by as much as 16 per cent, Qantas said it had accelerated a formal reconciliation of its foreign ownership.
Eyes on foreign ownership
Mr Costello reiterated the Government's view yesterday that the Qantas board had a legal obligation to restrict foreign ownership, and would need to have a good explanation if it had failed to do so.
The airline said heavy trading in Qantas shares had made this more difficult than usual.
"The process is being accelerated and Qantas will advise the market as necessary," it said.
Unions applauded the bid's death and warned management it must move quickly to address the sagging morale of the company's workers.
Transport Workers Union airlines spokesman Scott Connolly said morale had been devastated by the uncertainty generated over the past six months and was the lowest he had seen at the airline.
Management and the board had to demonstrate they were focused on running the company and were committed to Qantas workers and their families.
"We feel they certainly have taken their eye off the ball, the management team has, in the past six months," Mr Connolly said.
The Australian and International Pilots Association said the bid's failure should provide the catalyst for rebuilding "a sustainable and world-class airline".