Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Will QANTAS buy Cobham?

Old 26th Jul 2019, 02:31
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Will QANTAS buy Cobham?

More leverage?
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Old 26th Jul 2019, 03:15
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Highly doubt it
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Old 26th Jul 2019, 04:12
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Why would they buy Cobham?

Advent International Corporation is already proposing to buy Cobham for four BILLION pounds.

Assuming you meant the Australian branch of aviation services then who says that part is for sale?
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Old 26th Jul 2019, 04:30
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Yes talking about the aviation arm only
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Old 26th Jul 2019, 04:33
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Throw in the Regional operation in order to get out of the B717 contract?
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Old 26th Jul 2019, 04:41
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Yes talking about the aviation arm only
Well what makes WHAT THE or anyone else think that it is for sale? Advent International may want the WHOLE of Cobham as it is or indeed they may sell off parts but that is unknown as yet. In fact the deal has not even gone through yet and has a few hurdles to overcome. Not least that the UK government may want a defence contractor to remain with a large UK ownership.

Throw in the Regional operation in order to get out of the B717 contract?
That makes no sense at all. A little history for you. National Jet and Cobham bid for the surveillance contract years ago and NJS won. Cobham then bought NJS to gain that contract and as a side issue gained what became the airline and regional services divisions, which were one originally. Buying a company you have a contract with does not immediately invalidate the contract. Anyway, QF obviously likes having cheap cabin crew and pilots available to fly their 717 aircraft.
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Old 26th Jul 2019, 05:03
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Qantas have zero interest in fixing or bettering regional ops in Australia. They will have no interest in another AOC.

I cant remember if it was Strambi or another, however the comment was made that "the Australian regional market will not sustain the capital requirements of new airframes". They had the opportunity a few years ago to take that step however they decided to keep the 717's even when Delta was chomping at the bit to get them.
They dangle the jet carrot to Sunnies and Eastern every few years, then go and acquire dutch ovens that nobody else wants.

This week when Embraer brought the E2 to Australia the smartest men in the room did not even bother to leave Coward St to come for a look when the aircraft was barely a couple km away from them.

Just remember the jet you fly and everything in it is provided by the lowest bidder...….
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Old 26th Jul 2019, 05:27
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Originally Posted by Icarus2001 View Post
Buying a company you have a contract with does not immediately invalidate the contract. Anyway, QF obviously likes having cheap cabin crew and pilots available to fly their 717 aircraft.
With what I know of Qantas procurement, a non-negotiable in most of their contracts is a "majority control" clause which gives QF the ability to walk away if majority control of the contracting party changes. I'd be surprised if this is not in the contract with Cobham. But they would only invoke that if they had a viable alternative, which really comes down to the dollars and cents. If it went that way, I would imagine that Network would be in the frame, but they would probably look favourably at Alliance, if they can convince the ACCC to let them take control.
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Old 26th Jul 2019, 05:38
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Mmmmmm replace 125 seat B717 with a 100 seat F100. You may be onto something.
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Old 26th Jul 2019, 07:05
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Buying a company you have a contract with does not immediately invalidate the contract.
Exactly, if Advent want out out of Australia they are going to cough up something to get out thier contract with Qantas... how about a regional fifo operation with some cash flowing either direction. Dont know about special mission however.

I doubt it will be anything other that business as usual anyway, but this is a rumour and conspiracy forum afterall.
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Old 26th Jul 2019, 07:40
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Teabagger, Stop stealing lines from a great man!

Just remember the jet you fly and everything in it is provided by the lowest bidder...….​​​​​​​
​​​​​​“As I hurtled through space, one thought kept crossing my mind - every part of this rocket was supplied by the lowest bidder.”
― John Glenn
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Old 26th Jul 2019, 12:14
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Originally Posted by Icarus2001 View Post
Mmmmmm replace 125 seat B717 with a 100 seat F100. You may be onto something.
Yes.
Regulatory and market considerations aside.
The operating cost of the B717 per hour is on par with a 738 (at least with other operators)
Thus, given the market may be too small for the 738 (or other IR posturing) the question is what market is ultimately going to support which aircraft?
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Old 26th Jul 2019, 12:25
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Originally Posted by Rated De View Post
Yes.
Regulatory and market considerations aside.
The operating cost of the B717 per hour is on par with a 738 (at least with other operators)
Thus, given the market may be too small for the 738 (or other IR posturing) the question is what market is ultimately going to support which aircraft?
You sound like you know what you're talking about, but you don't!
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Old 26th Jul 2019, 14:00
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Will QANTAS buy Cobham? No.
Will they try and buy Cobham out of the contract early for a dollar? Very likely.
Will they use this situation to leverage Cobham crew into a bargain basement contract? Almost certainly.
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Old 26th Jul 2019, 14:34
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Originally Posted by Isamu Pahoa View Post
You sound like you know what you're talking about, but you don't!
I beg to differ.
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Old 26th Jul 2019, 22:01
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Originally Posted by Isamu Pahoa View Post
You sound like you know what you're talking about, but you don't!
Thank you for your opinion.

However the information is publicly available.
To help your education, the operator, following acquisition of a competitor inherited many B717.
The aircraft were disposed of inside two years and the reason is detailed by the operator.

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Old 26th Jul 2019, 22:28
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Surely Virgin will buy it. It’s what we do!
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Old 27th Jul 2019, 13:44
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I don’t know if they’ll buy Cobham, but Alliances share price has sure spiked.
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Old 28th Jul 2019, 04:13
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Originally Posted by nefarious1 View Post
I don’t know if they’ll buy Cobham, but Alliances share price has sure spiked.
Ever the stickler for his Corporate obligations, QF CEO Little Napoleon would never have forewarning of any such change. Thus, an Alliance purchase is simply "amazing timing" rather like vesting dates on really cheap management share options. All coincidence.
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Old 6th Aug 2019, 08:23
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I've heard rumors here on the east coast that Alliance are looking at Cobham Australia.
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