Qantas poised to inject millions into Jetstar Japan
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Geez, Qantas according to Plane Talking has put in an extra $60 million without getting any increase in voting rights.
Jetstar problems emerge in Japan and China | Plane Talking
Jetstar problems emerge in Japan and China | Plane Talking
But the ASX filing also decoupled the increase in Qantas money at risk in the venture with Japan Airlines, Mitsubishi Corporation and Central Tokyo Leasing from its voting rights. Amazing. More money, but no more say, in a venture where Qantas is always going to have a minority voice. How brilliant is this?
Probably just as amazing as its Jetstar Hong Kong venture, which Mr Joyce repeatedly said would be controlled by Qantas, guaranteeing that it was illegal under Hong Kong’s basic law, where basic common sense and some engagement with marketing intelligence might just have saved the airline from the limbo in which that project currently finds itself.
Or the amazing foray into Jetstar Pacific in Vietnam, which ‘owes’ Qantas what some believe to be hundreds of millions of dollars which are being looked after for it by Vietnamese majority owners who can and will do whatever they like with it.
Probably just as amazing as its Jetstar Hong Kong venture, which Mr Joyce repeatedly said would be controlled by Qantas, guaranteeing that it was illegal under Hong Kong’s basic law, where basic common sense and some engagement with marketing intelligence might just have saved the airline from the limbo in which that project currently finds itself.
Or the amazing foray into Jetstar Pacific in Vietnam, which ‘owes’ Qantas what some believe to be hundreds of millions of dollars which are being looked after for it by Vietnamese majority owners who can and will do whatever they like with it.
I sure hope these guys know what they are doing if it gets out of hand this sort of stuff can sink an airline. On face value they don't seem to be reporting Jetstar to the ASX. Investors might just wake up one morning and find QF broke without any warning.
If I understood Joyce correctly the company will be cash flow negative in the first 6 months of this financial year. With off balance sheet liabilities taken into account the company is very short of money which I think means at some stage they will need to raise money thru a rights issue which would have to be at a substantial discount to the present share price. Present load factors domestic and international do not provide confidence that Qantas has turned the corner and is anything but a train wreck waiting to happen. Why anyone would purchase shares in Qantas under the present management is beyond me. I think this will end in tears.
The board just finished another $100 million Buyback. At least someone was buying shares
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Throwing increasing amounts of cash into a scheme where the intrinsic value has yet to be realised.
With expectations of exploiting Asian markets with Amaaaazing returns.
Charles Ponzi would be impressed.
With expectations of exploiting Asian markets with Amaaaazing returns.
Charles Ponzi would be impressed.
short flights long nights
I'm only a dumb pilot, but to me this seems like a really good way to go broke.
When Jetstar Japan was set up Qantas put in 42% equity but by law foreign companies can only have 33% voting rights so why would you invest more on behalf of Mitsubishi and Japan Airlines...the plot thickens. How's that $3.5 billion that they supposedly had in the bank going? This will not stop until this is all gone! Who are the new directors? Maxine Brenner use to work for Investec and Garry Hounsell is Chairman of Investec Global Aircraft Fund and they obviously step out of the room when the subject of leasing aircraft comes up!
How the west was lost, the Assets go private and the Debt goes public.
How the west was lost, the Assets go private and the Debt goes public.
Last edited by busdriver007; 1st Nov 2013 at 14:37.
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Originally Posted by Jacana
Did you know Jetstar is the first and only international low cost carrier operating in multiple countries. There are going to be teething problems naturally.
Define the price of 'teething problems". Thus far it must be north of $750 million, with continuing negative cashflow, equity dilution (Vietnam, Hong Kong & Japan) and no signs the outlook will change in the medium term. Teething problems indeed.
Last edited by FYSTI; 1st Nov 2013 at 21:30.
Teething problems??? Like Barings Bank had 'teething problems' with a rogue trader?
Qantas has a rogue CEO and board. A brilliant mix of total incompetence, complete ignorance and lack of understanding of business in general (and airlines in particular) with a good measure of group think thrown in for luck.
They can't run an airline in their own country (or any country in Big Gay Al's case - love the name BTW!) so how in gods name do they expect to do it anywhere else? Let alone China!! I am speechless they even think they can get away with it.
'How I won WWI' by Field Marshall Douglas Haig might be a riveting read, but surely only a lunatic would use it as a 'How to' manual for airline operations!!
Qantas has a rogue CEO and board. A brilliant mix of total incompetence, complete ignorance and lack of understanding of business in general (and airlines in particular) with a good measure of group think thrown in for luck.
They can't run an airline in their own country (or any country in Big Gay Al's case - love the name BTW!) so how in gods name do they expect to do it anywhere else? Let alone China!! I am speechless they even think they can get away with it.
'How I won WWI' by Field Marshall Douglas Haig might be a riveting read, but surely only a lunatic would use it as a 'How to' manual for airline operations!!
Did you know Jetstar is the first and only international low cost carrier operating in multiple countries. There are going to be teething problems naturally.
"Big Gay Al"?
I have a significant problem with that name.
He's not that big.
Maybe Diminutive Gay Al.
I have a significant problem with that name.
He's not that big.
Maybe Diminutive Gay Al.
There are lots of ways QANTAS can lose money without throwing it into an unwinnable Peach, Vanilla, ANA, JACAB, Nipon Homeland Security war....... simply give us a healthy EBA increase and be done with it
C'mon Al, cough up buddy!
C'mon Al, cough up buddy!