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View Full Version : Some more cosy Qantas deals


neville_nobody
12th Sep 2007, 01:16
Looks like the smh are having a field day with the Qantas annual report.

http://www.smh.com.au/news/cbd/farmer-wins-chair-in-gas-mine/2007/09/11/1189276720122.html?page=2

Deals galore
The Qantas annual report is proving to be a page turner.Take the section on related party disclosures. While Garry Hounsell divides his time between boards including Orica, Nufarm and Qantas, he likes to get back to Toolangi Vineyards down in the Yarra Valley as often as he can. But when he's travelling up the pointy end of a Qantas plane, as is a director's wont, it's good to know he can enjoy a drop or two of his own produce.Turns out Qantas bought $106,000 worth of Toolangi Vineyards wine last year "for use on Qantas International Business Class services".Elsewhere around the roo-hide board table, if ever a man felt a tear well in the eye when our national rugby team runs on the field, it's General Peter Cosgrove.After all, they're not just the Wallabies, they're the Qantas Wallabies. And guess who's a director of both? Qantas and the ARU have a nice cosy relationship, including a $3.2 million contra deal. Then there's now-retired director James Packer, whose PBL spent $15 million on Qantas airfares last year while Qantas bought $4 million in advertising from PBL. And not to mention Patricia Cross, whose other half, Paul Meadows, is a partner at Allens Arthur Robinson. Qantas threw $5 million their way last year. All at arm's length, of course.

QFinsider
12th Sep 2007, 02:00
Am I suprised?

Not in the slightest.

However if we take this issue as one of transparency I think as a shareholder I would like to know what premium is paid on the product/advice bought? It is this sort of thing the Americans stopped their "cross directors" doing a few moons ago. The transactions between entities where there are common linkages of key staff are heavily scrutinised to stop the further lining of pockets by mates.............:(

Jabawocky
12th Sep 2007, 02:19
If its a fair market price for the product supplied, whats the problem!

I buy Toyota's from my brother at or even better:E than fair market price........thats smart business and looking after the shareholders!

J:ok:

RedTBar
12th Sep 2007, 04:44
Jabawocky said...

thats smart business and looking after the shareholders!

Not really......

For an individual that's fine but for a company it depends on what price you paid and how it compare's to the competition.If you could have bought another product which is better for the same or less money then the sharehoders are not being looked after.

I'm not saying that this is so in this case but company purchases especially in a service industry should depend on the quality and cost of the item not who on the board makes this product or is related to the manufacturer.