Qantas:Employee Buy out Feasibility

[DEFCON4]

This is just a question.
When QF was floated a number of employees tried to encourage others to buy shares in number that could be afforded.Borrowing to buy shares can be tax effective and can work well when the stock rises in value.The idea was to purchase enough shares to secure a seat on the board.Little interest was shown.
Is there any viability in an employee buyout ?

[Vindiesel]

This idea was floated by an ex-AIPA President. He suggested each pilot could put up $50,000 each (borrowed if necessary) in an attempt to secure a seat on the board of Qantas. It should be noted the QAN share price at that time was somewhere down around $1.50.

The main problem is that Qantas currently has a market capitalisation of around $6 billion (off the top of my head), so a 10% stake in the conmpany would require $600 million - not to mention the other significant hurdles involved in acquiring a chunk that size...

Would be great if it happened though :ok:

[Millet Fanger]

If you include ex employees in the buyout plan, I think the idea might work.

I know just such a person with $100 mil. I will speak to scrotum face and see if he will spend part of his 'departure' package!

[WorthWhat]

When a company isn’t paying a dividend to its shareholders and is unlikely to have the cash flow to pay for what it has contracted to purchase, it obviously needs to evaluate all alternatives.

IMHO, further ‘industrial trimming’ is unlikely to fix Qantas’ growing financial difficulties and may well ultimately weaken its chances of survival.

Employee Ownership could, as would an equity injection from a cashed up foreign carrier, and/or proceeds from the sale of Jetstar, underpin the recapitalisation of Qantas International and is clearly something Shareholders & Staff need to seriously evaluate.

Owning 15% of Qantas would make any Employee Share Trust (QEST) a substantial shareholder and would allow employees to significantly influence the strategic direction of the Qantas Group.

:ok:

[teresa green]

Continental tried it and went broke as far as I know.

[Jethro Gibbs]

Stupid idea

[Tankengine]

Southwest seem to do all right!:8

[gobbledock]

Sorry and no offence to those who have done it but airline shares are crap and a ridiculous investment. High risk for little gain. Sink your money into gold. Metal is actually real.

[indamiddle]

the board you really need to get on is the renumeration board.

[Short_Circuit]

With the way the place is being run, I would not buy a single share in it.:sad:

[Shagpile]

It doesn't matter - the whole industry is doomed if this article (http://www.news.com.au/technology/indian-inventor-says-modified-maruti-hatchback-can-fly-he-just-hasnt-fired-it-up-yet/story-e6frfro0-1226004994891) is correct.

[cynphil]

It doesn't matter - the whole industry is doomed if this article (http://www.news.com.au/technology/indian-inventor-says-modified-maruti-hatchback-can-fly-he-just-hasnt-fired-it-up-yet/story-e6frfro0-1226004994891) is correct.
It looks newer than the QF B747-400's and the B767's. Definitely will not brake down as much!!! So maybe you are right!!!:rolleyes:

[WorthWhat]

To save United from bankruptcy, the decision was made to sell 55% of the airline to the employees.

1995 was a good year for United Airlines. It was the first year under its new ESOP, which owned 55% of the company. It was also the best year for shareholders in the company's 70-year history, outperforming Standard & Poor's by 67%, increasing shareholder value by over $4 billion. Employee grievances fell 74 percent. Revenue per employee went up 10%. Surveys showed employees liked working at United.

2000 was the last year of the ESOP, and the start of a disastrous period for United. What happened is available from Flying United: United Airlines ESOP Story (http://www.cesj.org/jbm/casestudies-vbm/unitedairlines.html)

Moral of the story - employees should own the aeroplanes, not the airline