Qantas reiterates interest in leading industry consolidation
Qantas CEO, Alan Joyce, reiterated that the carrier is keen to lead in the consolidation of carriers worldwide, stating he sees its future in the global market and would be a “a great asset for anyone” (Bloomberg, 07-Jun-2010). He identified Qantas’ investment-grade credit rating as a major attraction for a merger partner. Mr Joyce declined to comment on whether he would reconsider a tie-up with British Airways after BA merges with Iberia later this year. The CEO also commented that the Asia Pacific market is now “very healthy” but UK and Europe demand remains “weak”.
Qantas: “Consolidation isn’t easy to do and cross-border intercontinental mergers have not occurred yet. I think they will, and Qantas will be at the forefront of that, but it will take some time … I don’t think you can ever look back and have any regrets. I think you have to look forward, and we do look forward at what other opportunities do exist … Our international long-haul flights are still the ones that are suffering most. The business market is returning but there needs to be a significant improvement to get them back to where we need them to be,” Alan Joyce, CEO. Source: Bloomberg, 07-Jun-2010.