THE FUTURE OF QANTAS

I recently read that Qantas are to cut 1,000 jobs as bookings slump. The airline is having trouble surviving in a difficult market, particularly as it’s perceived as a government-owned flag carrier.

No single foreign airline can own more than 25 per cent of Qantas, and various airlines together can own no more than 35 per cent of its stock. This the reason Etihad, Singapore Airlines and Air New Zealand as well as Virgin group are all shareholders of Virgin Australia, and own 80 per cent of the domestic operation.

Qantas wants to increase foreign ownership to 49 per cent. A string of foreign airlines could be interested, with Emirates the most obvious to protect its partnership with QF. The other obvious conclusion is to look at QF’s alliance, Oneworld, where possible suitors include BA, Qatar, Malaysian and Cathay Pacific. Send for Willie Walsh and International Airlines Group! I would say that is exactly the problem. A ruthless Irishman is currently at the helm. Hippocampus, Qantas is limited through the Qantas Sales Act to 49 per cent foreign ownership, of which a maximum of 35 per cent can be owned by foreign airlines, and no one individual or business can own more than 20 per cent. By being so protectionist they are aiding its potential demise or considerable downsizing at least. Qantas is being gutted by Emirates. If the unions and the Australian government had conceded that restructuring was essential, it could have been saved. I’m sat next to a Qantas crew colleague right now who has access to the real time loads for the two QF flights departing London tomorrow night via the QF staff intranet. There are 399 empty economy seats to Dubai tomorrow night, the equivalent of an entire 747. The reality is Qantas has pretty much given up. The Emirates thing is a last roll of the dice and they will be enveloped and digested.