Qantas: investors not accounting full value of frequent flyer programme
Qantas Frequent Flyer CEO, Simon Hickey, stated investors are not taking the value of the carrier’s frequent flyer programme into consideration in terms of Qantas’ share price (Bloomberg, 06-May-2010). Enrolment in the programme has risen 21% since Jul-2009, to 7 million members. Mr Hickey also stated the programme may eventually consider overseas takeovers to expand its reach, but plans to focus on the Australian market at present. The CEO also confirmed Qantas has no plans to launch an IPO for the programme.
Qantas: “We want to see investors value it appropriately in the share price. We’re a very steady business with good cash flows and a steady growth profile … We have become more relevant for the whole population. Not everyone is jumping on a plane and accruing lots of points from business flights,” Simon Hickey, Frequent Flyer CEO. Source: Bloomberg, 06-May-2010.