Montague S
22nd August 2008, 12:26 PM
interesting article in the SMH regarding mergers...Lord Dixon of Coward St suggests that it will happen sooner rather than later. I'd predict that by midway in the next decade QF will be merged with a major carrier from the Asian region.
Qantas will inevitably merge with another major carrier and it will be sooner rather than later, the airline's outgoing chief executive Geoff Dixon says.
Mr Dixon said he believed the resulting airline would not be much different to what exists now.
Qantas would always be Australian and would always have the great majority of its jobs and its business in Australia, he said.
"But there has to be a level of maturity when it comes to a discussion on this," he told ABC Radio.
"The airline industry is very fragmented. It is hugely capital intensive. Other airlines are starting to merge and we must be part of that.
"It doesn't mean the kangaroo will go. It doesn't mean the brand will go. It will be probably very similar to what it is now. People have got to understand that this will happen."
Singapore Airlines has been named in the past as a potential suitor but Mr Dixon said he wasn't looking to anyone in particular.
Companies tended to sit down and see a community of interest, he said.
"I am not saying there is anybody out there at the moment. All I am saying is that many airlines are now merging in situations where they probably would not have considered it three or four or even five years ago," he said.
Mr Dixon said Qantas was the world's 10th largest airline which was amazing considering Australia was the world's 54th biggest country.
"But we still are not big enough in five to 10 years to do it on our own. I believe it will be sooner rather than later," he said.
Mr Dixon, who steps down in November and hands over to current Jetstar boss Alan Joyce, said Qantas was doing exceedingly well internationally, reporting a 44 per cent profit increase for the 2007/08 year.
He said Qantas had orders worth $36 billion for new fuel efficient aircraft which will enter service over the next 10 years.
"When we get those in I am quite sure we will be more efficient. We want to get a return for our investment and we will cut fares as much as we can," he said.
AAP
http://www.smh.com.au/news/news/qantas-merger-inevitable/2008/08/22/1219262485583.html
Qantas will inevitably merge with another major carrier and it will be sooner rather than later, the airline's outgoing chief executive Geoff Dixon says.
Mr Dixon said he believed the resulting airline would not be much different to what exists now.
Qantas would always be Australian and would always have the great majority of its jobs and its business in Australia, he said.
"But there has to be a level of maturity when it comes to a discussion on this," he told ABC Radio.
"The airline industry is very fragmented. It is hugely capital intensive. Other airlines are starting to merge and we must be part of that.
"It doesn't mean the kangaroo will go. It doesn't mean the brand will go. It will be probably very similar to what it is now. People have got to understand that this will happen."
Singapore Airlines has been named in the past as a potential suitor but Mr Dixon said he wasn't looking to anyone in particular.
Companies tended to sit down and see a community of interest, he said.
"I am not saying there is anybody out there at the moment. All I am saying is that many airlines are now merging in situations where they probably would not have considered it three or four or even five years ago," he said.
Mr Dixon said Qantas was the world's 10th largest airline which was amazing considering Australia was the world's 54th biggest country.
"But we still are not big enough in five to 10 years to do it on our own. I believe it will be sooner rather than later," he said.
Mr Dixon, who steps down in November and hands over to current Jetstar boss Alan Joyce, said Qantas was doing exceedingly well internationally, reporting a 44 per cent profit increase for the 2007/08 year.
He said Qantas had orders worth $36 billion for new fuel efficient aircraft which will enter service over the next 10 years.
"When we get those in I am quite sure we will be more efficient. We want to get a return for our investment and we will cut fares as much as we can," he said.
AAP
http://www.smh.com.au/news/news/qantas-merger-inevitable/2008/08/22/1219262485583.html