Qantas equity & fleet announcement
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Qantas equity & fleet announcement
Press release from Qantas this morning ahead of AGM in Melbourne today. Qantas shares suspended in trading on ASX as of this morning .
Qantas Announces $300 Million Equity Raising
Melbourne, 18 October 2001 :
NOT FOR RELEASE IN THE UNITED STATES OF AMERICA
MELBOURNE, 18 October 2001: Qantas Airways announced today it intends to raise $300 million of ordinary equity through a global bookbuild placement to domestic and foreign institutions.
In addition, all eligible Qantas shareholders will be able to purchase up to $3,000 worth of shares through a special Share Purchase Plan at the same price as the shares issued under the placement.
Qantas Chairman Margaret Jackson said the Share Purchase Plan allowed loyal Qantas shareholders, many of whom had owned their shares since the company was privatised six years ago, to participate in the equity raising at the same price as institutions and without incurring any charges.
She said details of the Share Purchase Plan would be set out in documentation that will be sent to shareholders shortly following completion of the placement.
The funds raised through the placement and the Share Purchase Plan will be used to partly fund the acquisition of 17 new aircraft as part of a revamp of Qantas domestic operations (see separate announcement).
The total cost of the acquisition will be in the order of A$1.5 billion, including start-up costs.
The balance of funds required for the acquisition will be a mixture of operating cashflows and debt.
Trading in Qantas shares has been halted today pending completion of the placement. It is expected that trading in Qantas shares will recommence tomorrow.
This announcement has been prepared for use in Australia and may not be released in the United States. This announcement does not constitute an offer of securities for sale in the United States. Any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act or exemption from Registration
Issued by Qantas Public Affairs (2535)
Media Contact:
Michael Sharp
Qantas Announces $300 Million Equity Raising
Melbourne, 18 October 2001 :
NOT FOR RELEASE IN THE UNITED STATES OF AMERICA
MELBOURNE, 18 October 2001: Qantas Airways announced today it intends to raise $300 million of ordinary equity through a global bookbuild placement to domestic and foreign institutions.
In addition, all eligible Qantas shareholders will be able to purchase up to $3,000 worth of shares through a special Share Purchase Plan at the same price as the shares issued under the placement.
Qantas Chairman Margaret Jackson said the Share Purchase Plan allowed loyal Qantas shareholders, many of whom had owned their shares since the company was privatised six years ago, to participate in the equity raising at the same price as institutions and without incurring any charges.
She said details of the Share Purchase Plan would be set out in documentation that will be sent to shareholders shortly following completion of the placement.
The funds raised through the placement and the Share Purchase Plan will be used to partly fund the acquisition of 17 new aircraft as part of a revamp of Qantas domestic operations (see separate announcement).
The total cost of the acquisition will be in the order of A$1.5 billion, including start-up costs.
The balance of funds required for the acquisition will be a mixture of operating cashflows and debt.
Trading in Qantas shares has been halted today pending completion of the placement. It is expected that trading in Qantas shares will recommence tomorrow.
This announcement has been prepared for use in Australia and may not be released in the United States. This announcement does not constitute an offer of securities for sale in the United States. Any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act or exemption from Registration
Issued by Qantas Public Affairs (2535)
Media Contact:
Michael Sharp
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Qantas to buy 17 planes
From AAP
18oct01
QANTAS has announced plans to buy 17 new aircraft and raise $300 million in ordinary equity.
Qantas said it would buy 15 new generation, long-range, narrow body aircraft and two Dash 8 aircraft as part of a comprehensive revamp of its domestic operations.
It would also raise $300 million of equity through a global bookbuild placement to domestic and foreign institutions.
Qantas chief executive Geoff Dixon said the new aircraft would allow Qantas to provide permanent additional capacity and enhance the range of services for travel in Australia, including to regional destinations.
The aircraft will be either Boeing 737-800s or Airbus A320s and the total cost of the acquisition will be in the order of $1.5 billion, including start-up costs.
In order to partly fund the acquisition of the new aircraft Qantas will raise the $300 million in new equity.
In addition, all eligible Qantas shareholders will be able to purchase up to $3,000 worth of shares through a special Share Purchase plan at the same price as the shares issued under the placement.
From AAP
18oct01
QANTAS has announced plans to buy 17 new aircraft and raise $300 million in ordinary equity.
Qantas said it would buy 15 new generation, long-range, narrow body aircraft and two Dash 8 aircraft as part of a comprehensive revamp of its domestic operations.
It would also raise $300 million of equity through a global bookbuild placement to domestic and foreign institutions.
Qantas chief executive Geoff Dixon said the new aircraft would allow Qantas to provide permanent additional capacity and enhance the range of services for travel in Australia, including to regional destinations.
The aircraft will be either Boeing 737-800s or Airbus A320s and the total cost of the acquisition will be in the order of $1.5 billion, including start-up costs.
In order to partly fund the acquisition of the new aircraft Qantas will raise the $300 million in new equity.
In addition, all eligible Qantas shareholders will be able to purchase up to $3,000 worth of shares through a special Share Purchase plan at the same price as the shares issued under the placement.
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I also read that there will be up to 40 options, and
that they will be configured all economy, I wonder
if they are considering a seperate discount arm
to counter Ansett MkII and Virgin Blue.
Wirraway
that they will be configured all economy, I wonder
if they are considering a seperate discount arm
to counter Ansett MkII and Virgin Blue.
Wirraway
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Dow Jones Newswires 17-10-01
2314GMT Set To Meet Unions Monday
The airline, which recently saw its domestic market share spike to 85% following Ansett's problems, expects to decide next week whether it will buy Boeing 737-800s or Airbus A320s.
The first two aircraft are scheduled for delivery in January followed by another two each month after that.
Qantas also will take options for at least a further 40 narrow body aircraft at current prices, it said.
"The domestic market has changed fundamentally and irrevocably over the past year and our new strategy will enable us to meet the increasing customer focus on flexibility while in no way reducing the quality of the Qantas product or service," said chief executive Geoff Dixon.
Short term measures introduced when Ansett first stumbled will be gradually discontinued as services from the growing Virgin Blue airline and other carriers expand.
Dixon added that the all-economy class fleet and the lower operating costs of the new aircraft will help lower Qantas' cost base.
"This is essential given the state of the global aviation industry, including the significant recent rises in insurance and security costs and aviation charges," he said.
"We also need greater productivity and lower labor costs to compete effectively worldwide," he said, noting that the company is set to meet with unions Monday.
Earlier this month, Dixon noted in an internal memo to staff that Qantas needs "to prepare for a world that will see hundreds of millions of dollars of costs (e.g. insurance, security) added to the Qantas bottom-line from the aftermath of the Sept. 11 terrorist attacks."
(MORE) Dow Jones Newswires 17-10-01
2314GMT Set To Meet Unions Monday
The airline, which recently saw its domestic market share spike to 85% following Ansett's problems, expects to decide next week whether it will buy Boeing 737-800s or Airbus A320s.
The first two aircraft are scheduled for delivery in January followed by another two each month after that.
Qantas also will take options for at least a further 40 narrow body aircraft at current prices, it said.
"The domestic market has changed fundamentally and irrevocably over the past year and our new strategy will enable us to meet the increasing customer focus on flexibility while in no way reducing the quality of the Qantas product or service," said chief executive Geoff Dixon.
Short term measures introduced when Ansett first stumbled will be gradually discontinued as services from the growing Virgin Blue airline and other carriers expand.
Dixon added that the all-economy class fleet and the lower operating costs of the new aircraft will help lower Qantas' cost base.
"This is essential given the state of the global aviation industry, including the significant recent rises in insurance and security costs and aviation charges," he said.
"We also need greater productivity and lower labor costs to compete effectively worldwide," he said, noting that the company is set to meet with unions Monday.
Earlier this month, Dixon noted in an internal memo to staff that Qantas needs "to prepare for a world that will see hundreds of millions of dollars of costs (e.g. insurance, security) added to the Qantas bottom-line from the aftermath of the Sept. 11 terrorist attacks."
(MORE) Dow Jones Newswires 17-10-01
Impulse are merely a contractor for QF so I would not think any present or future QF a/c would go to them.
With QF talking of drastic changes to domestic flying and possibly operating 40 narrow body jets in a single class with high density seating if makes you wonder if Australian Airlines will also be a domestic operator.
With QF talking of drastic changes to domestic flying and possibly operating 40 narrow body jets in a single class with high density seating if makes you wonder if Australian Airlines will also be a domestic operator.
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So. 737 or A320. Lets have a guess.
Its now Oct 18 and deliveries of the first 2 take place in January.
1.A320. How do you have at least 12 crews plus supervisories, up and trained by January. And from a dead cold start.
2. B737 NG. A short "differences" course for all your current 737 jocks and you are away.
Anyone taking bets on the big secret???
Its now Oct 18 and deliveries of the first 2 take place in January.
1.A320. How do you have at least 12 crews plus supervisories, up and trained by January. And from a dead cold start.
2. B737 NG. A short "differences" course for all your current 737 jocks and you are away.
Anyone taking bets on the big secret???
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Thats why AWAS are looking for crew to start in DEC on the A320 - 2 year contract while QF crews are trained up.
Airbus is lobbying hard to get their products sold in Oz (one of the few places in the world actually in demand of aircraft) and will do anything (crew training, engineer training, spare parts) to be successfull.
An A320 will be arriving today in Oz as a demo - something tells me it wont be for AN. It will be in UA colors with v2500 engines.
But, on the flipside, Boeing are keen to see QF ditch their order for the 330 and take up 777's instead. You know that rumour doing the rounds that the 330's are on thin ice.
Keep an eye out for change.
Airbus is lobbying hard to get their products sold in Oz (one of the few places in the world actually in demand of aircraft) and will do anything (crew training, engineer training, spare parts) to be successfull.
An A320 will be arriving today in Oz as a demo - something tells me it wont be for AN. It will be in UA colors with v2500 engines.
But, on the flipside, Boeing are keen to see QF ditch their order for the 330 and take up 777's instead. You know that rumour doing the rounds that the 330's are on thin ice.
Keep an eye out for change.
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ASX
QANTAS AIRWAYS LIMITED 2001-10-18 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
MEDIA RELEASE
Qantas Airways announced today that it will purchase 15 new
generation, long range, narrow body aircraft and two Dash 8 aircraft
as part of a comprehensive revamp of its domestic operations.
Qantas Chief Executive Officer Geoff Dixon said the new aircraft will
allow Qantas to provide permanent additional capacity and enhance the
range of services Qantas offers for travel in Australia, including to
regional destinations.
The aircraft will be either Boeing 737-800s or Airbus A320s and the
total cost of the acquisition will be in the order of A$1.5 billion,
including start-up costs. Negotiations have been held with Airbus and
Boeing over the past three weeks and there will be a decision on the
aircraft type next week. The first two aircraft will be delivered in
January, with two aircraft delivered each month after that.
The new aircraft and new fleet strategy will give Qantas between 65
per cent and 70 per cent of the capacity in the Australian domestic
market.
QANTAS AIRWAYS LIMITED 2001-10-18 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
MEDIA RELEASE
Qantas Airways announced today that it will purchase 15 new
generation, long range, narrow body aircraft and two Dash 8 aircraft
as part of a comprehensive revamp of its domestic operations.
Qantas Chief Executive Officer Geoff Dixon said the new aircraft will
allow Qantas to provide permanent additional capacity and enhance the
range of services Qantas offers for travel in Australia, including to
regional destinations.
The aircraft will be either Boeing 737-800s or Airbus A320s and the
total cost of the acquisition will be in the order of A$1.5 billion,
including start-up costs. Negotiations have been held with Airbus and
Boeing over the past three weeks and there will be a decision on the
aircraft type next week. The first two aircraft will be delivered in
January, with two aircraft delivered each month after that.
The new aircraft and new fleet strategy will give Qantas between 65
per cent and 70 per cent of the capacity in the Australian domestic
market.
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Dow Jones:
Transport analysts welcomed Qantas's expansion and equity plans, noting the airline won't have any problems raising A$300 million.
Salomon Smith Barney transport analyst Jason Smith told Dow Jones Newswires Qantas' plans is a "huge boost" to investor confidence and "very opportunistic."
"I think it's probably the most unique and best positioned airline in the world, and would be the only one that's just placed an order for a delivery of 17 planes in the next six months," he added.
Macquarie Bank transport analyst Ian Myles said the news was "very positive" for Qantas.
Minor player Virgin Blue, part of Richard Branson's Virgin Group, is also racing to increase its capacity and a scaled down "Ansett Mark II" remains a possible player in the market.
Virgin Blue Chief Executive Brett Godfrey said the no-frills airline hopes to more than double its market share and is ready to do battle with Qantas.
"Our market share is about 8%...we are already protective of that and we are looking to expand," Godfrey told Dow Jones Newswires.
"We will probably have 20% of the market ourselves by middle of next year," he said.
As part of its assault on the domestic market, Qantas plans to discount one million seats on domestic routes until Christmas, putting intense financial pressure on Virgin Blue.
Salomon Smith Barney's Smith said he doesn't expect Virgin Blue to get as big as Ansett, which had just under 40% of the market before it was put into administration Sept. 12 suffering crippling debt.
Dixon said Qantas will launch its low cost international carrier, Australian Airlines, in April despite the current turmoil in the international aviation market.
And he added that Qantas is also still interested in acquiring a stake in Air New Zealand.
Dixon and Chairwoman Margaret Jackson both reiterated they want the foreign ownership restrictions on Qantas removed, which they believe would enable Qantas to better compete on the world stage.
Jackson said their position has received "sympathy" from the government and the Labor opposition.
Total foreign ownership in Qantas is capped at 49% and no single foreign entity can hold more than 25%.
Qantas said its market share on the trans-Tasman route between Australia and New Zealand has jumped about 10%-15% following the demise of Ansett and woes at Air New Zealand.
Dixon also said he is interested in acquiring some of Ansett's infrastructure and maintenance operations including engineering.
He told reporters "we have put our hands up for quite a bit" of Ansett.
But Jackson added that Qantas is probably at bottom of the queue for the assets, with the Ansett administrators Arthur Andersen more interested in keeping it intact. Qantas would likely also face problems with the competition regulator.
Transport analysts welcomed Qantas's expansion and equity plans, noting the airline won't have any problems raising A$300 million.
Salomon Smith Barney transport analyst Jason Smith told Dow Jones Newswires Qantas' plans is a "huge boost" to investor confidence and "very opportunistic."
"I think it's probably the most unique and best positioned airline in the world, and would be the only one that's just placed an order for a delivery of 17 planes in the next six months," he added.
Macquarie Bank transport analyst Ian Myles said the news was "very positive" for Qantas.
Minor player Virgin Blue, part of Richard Branson's Virgin Group, is also racing to increase its capacity and a scaled down "Ansett Mark II" remains a possible player in the market.
Virgin Blue Chief Executive Brett Godfrey said the no-frills airline hopes to more than double its market share and is ready to do battle with Qantas.
"Our market share is about 8%...we are already protective of that and we are looking to expand," Godfrey told Dow Jones Newswires.
"We will probably have 20% of the market ourselves by middle of next year," he said.
As part of its assault on the domestic market, Qantas plans to discount one million seats on domestic routes until Christmas, putting intense financial pressure on Virgin Blue.
Salomon Smith Barney's Smith said he doesn't expect Virgin Blue to get as big as Ansett, which had just under 40% of the market before it was put into administration Sept. 12 suffering crippling debt.
Dixon said Qantas will launch its low cost international carrier, Australian Airlines, in April despite the current turmoil in the international aviation market.
And he added that Qantas is also still interested in acquiring a stake in Air New Zealand.
Dixon and Chairwoman Margaret Jackson both reiterated they want the foreign ownership restrictions on Qantas removed, which they believe would enable Qantas to better compete on the world stage.
Jackson said their position has received "sympathy" from the government and the Labor opposition.
Total foreign ownership in Qantas is capped at 49% and no single foreign entity can hold more than 25%.
Qantas said its market share on the trans-Tasman route between Australia and New Zealand has jumped about 10%-15% following the demise of Ansett and woes at Air New Zealand.
Dixon also said he is interested in acquiring some of Ansett's infrastructure and maintenance operations including engineering.
He told reporters "we have put our hands up for quite a bit" of Ansett.
But Jackson added that Qantas is probably at bottom of the queue for the assets, with the Ansett administrators Arthur Andersen more interested in keeping it intact. Qantas would likely also face problems with the competition regulator.
