Qantas establishes new frequent flyer programme to generate cash and equity valuation

Qantas yesterday announced formally the establishment of a new FFP, first flagged when private equity group TPG and partners bid to buy the airline a little over a year ago. This offers the airline a range of potential upsides. But Qantas is yet to formally decide to split out the unit into a new skin. Although Air Canada introduced a corporate concept in its Aeroplan, a listed company that is now worth many times more than Air Canada itself, few others have yet followed suit. The Aeroplan concept is not for everyone. But it should work for Qantas.