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Destabilising times for Qantas - Gulf Air gets on with business

7-May-2007

The extraordinary events at the weekend surrounding the Airline

Partners Australia (APA) bid for Qantas is a reminder of the destabilising effects

of takeovers and ownership changes. The failure of the bidders to gain enough

acceptances to extend the bid another two weeks has crystallised staff/union

opposition to the bid (on top of the obvious shareholder concerns) and weakened

the position of the Qantas Board, led by Chairman, Margaret Jackson, and executives,

including CEO, Geoff Dixon. The turmoil at Qantas inevitably plays into the

hands of its competitors, including Virgin Blue and planned entrant, Tiger Airways

in the domestic market, and a swag of offshore rivals. [253 words]

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