Jet Star on The March
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Jet Star on The March
Qantas, Choo Buy 100% of Jetstar Asia; Temasek Sells (Update1)
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By Robert Fenner
April 2 (Bloomberg) -- Qantas Airways Ltd., Australia’s biggest carrier, and Dennis Choo will take full ownership of two Singapore-based low-cost carriers after buying out partners including Temasek Holdings Pte.
Choo, a Singaporean national, will own 51 percent of Jetstar Asia Airways Pte and Valuair Ltd., with Qantas holding the rest, the Sydney-based carrier said today in a stock exchange statement. No financial details were included in the announcement.
The new ownership structure will help Qantas lower costs by better aligning Jetstar Asia with its operations in Australia, the carrier said. Last month, Qantas Chief Executive Officer Alan Joyce cut 90 executive jobs and maintained a salary freeze as the global recession saps travel demand.
Singapore nationals will hold the majority of Jetstar Asia’s board seats and the carrier will retain its traffic rights in the nation.
Chong Phit Lian will stay as Jetstar Asia’s chief executive officer. Choo, who has worked with Qantas for more than two decades, will become chairman of Newstar Investment Holdings Pte, the new parent for Jetstar Asia and Valuair.
Jetstar Asia was previously owned by Orangestar Investment Holdings Pte, whose shareholders included Qantas, Temasek and private investors in Singapore.
Global airline losses may total $4.7 billion this year, almost 90 percent higher than previously forecast, as the deepening recession wipes out $63 billion of revenue, the International Air Transport Association said last month.
To contact the reporter on this story: Robert Fenner in Melbourne
Share | Email | Print | A A A
By Robert Fenner
April 2 (Bloomberg) -- Qantas Airways Ltd., Australia’s biggest carrier, and Dennis Choo will take full ownership of two Singapore-based low-cost carriers after buying out partners including Temasek Holdings Pte.
Choo, a Singaporean national, will own 51 percent of Jetstar Asia Airways Pte and Valuair Ltd., with Qantas holding the rest, the Sydney-based carrier said today in a stock exchange statement. No financial details were included in the announcement.
The new ownership structure will help Qantas lower costs by better aligning Jetstar Asia with its operations in Australia, the carrier said. Last month, Qantas Chief Executive Officer Alan Joyce cut 90 executive jobs and maintained a salary freeze as the global recession saps travel demand.
Singapore nationals will hold the majority of Jetstar Asia’s board seats and the carrier will retain its traffic rights in the nation.
Chong Phit Lian will stay as Jetstar Asia’s chief executive officer. Choo, who has worked with Qantas for more than two decades, will become chairman of Newstar Investment Holdings Pte, the new parent for Jetstar Asia and Valuair.
Jetstar Asia was previously owned by Orangestar Investment Holdings Pte, whose shareholders included Qantas, Temasek and private investors in Singapore.
Global airline losses may total $4.7 billion this year, almost 90 percent higher than previously forecast, as the deepening recession wipes out $63 billion of revenue, the International Air Transport Association said last month.
To contact the reporter on this story: Robert Fenner in Melbourne
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Location: Beyond The Envelope
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Be Afraid
Whilever Jet Scar was a fractured dissociative mess it was never going to achieve anything.But now with AJ at the helm of the Qantas/JetStar Group it looks its going to get some direction and steam.The current economic environment is perfect for the LCC business model
Last edited by Ka.Boom; 2nd Apr 2009 at 12:53.
Things at Jetstar Asia obviously weren't working the way that Qantas wanted and AJ flew to Singapore in January to sort things out. He was prepared to pull out of the operation (including the "Jetstar" name) if he couldn't get his way. He needed to get Temasek out as they had a conflict of interest with ownership of SQ and its subsidiaries - Silk Air & Tiger. It looks like he got his way with Dennis Choo owning the necessary 51% to retain its status as a "Singaporean Carrier" and Qantas owning the rest (& providing all the management input).
