PPRuNe Forums - Qantas Asia Business Model

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Keep digging. You may find where he got the money to take a 51% controlling stake in JQ Asia.

Well, according to Plane talking | The Australian this story

Quote:

Under the new deal, there are only two shareholders - Jetstar with 49 per cent of the business, and a Singaporean travel wholesaler, Dennis Choo, who was given financial assistance organised by Qantas.

It is suggested in that article that Qantas gave him, or organised it at arms length.... the money to 'buy' 51% of Jetstar Asia.

But another interesting connection

Mr Choo is on the board of Diethelm Keller Group, which owns STA Travel.

STA Travel, its Indonesian branch

STA Travel - Indonesia

Quote:

CONTACT DETAILS

PT Tour East Indonesia
Jalan Palau Komodo no. 20
Bali
80114
Indonesia
Tel: 62 361 237 782
Fax: 62 361 231 154
Email: [email protected],id

And if we can remember from before

Qantas owns

Quote:

PT Holidays Tours & Travel Tours Indonesia 37%

So the assumption is that STA owns the rest.

And Dennis Choo, the financial benefactor of Qantas's foray into Jetstar Asia, who is on the board of Diethelm Keller Group, which in turn owns STA.

And another
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Quote:

TOUR EAST (2009) SDN BHD
(formerly known as STA Travel).

Which is, as per the 2010 annual report

Tour East (2009) Sdn Bhd Malaysia 75% owned by Qantas.

So basically what this means is:

1) The Qantas arrangement to employ Asian crew from an arms length third party supplier is a sham, in that it isn't an "arms length" transaction?

2) Qantas may be 100% exposed to Jetstar Asia, which should galvanise the shareholders mightily if it is correct.

If Qantas "arranged" for Mr Choo to find the finance for his purchase of Temasek's shares in Jetstar Asia, then you can bet your bottom dollar that Qantas is Guarantor, or has provided some other form of security for Choo's lenders. Could somebody ask this as a question at the Qantas AGM?

If this is true, it would be consistent with my assertion that there is no way in hell that Jetstar Asia is a winning strategy and Asian investors know it.