Is the Qantas shake-up promoting transparency, or just shuffling the economic deck?
In Radio National’s PM program Roger Montgomery provides his Value.able insights into the short-term economics of the Australian airline industry to the ABC’s David Taylor. Read/Listen here.
This program was broadcast on 22nd May, 2012.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Chris
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So, back to Qantas and TAA … why did they combine in the first place?
Roger Montgomery
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For those too young to appreciate Chris’s reference:
After changing airline policy, the Australian Government in 1992 approved a A$400 million bid by Qantas for Australian Airlines and its subsidiaries and announced that the enlarged Qantas group would be fully privatised.
The purchase of Australian Airlines was completed in September 1992. The merger of the two airlines positioned Qantas as the principal Australian airline. It brought economies of scale, more efficient use of aircraft and improved management of passenger capacity and transfers between domestic and international services. Australian had a primary fleet of 36 jet aircraft with a further 37 smaller aircraft in subsidiary regional airlines.
The two airlines had links going back to the formation of Trans-Australia Airlines (TAA) (as it was then known) in 1946, when a number of executives, including the first General Manager Captain Lester Brain, were recruited from Qantas ranks. TAA took over Qantas’ Queensland and Northern Territory networks along with the Flying Doctor Service in 1949 and Qantas’ internal services in New Guinea in 1960.
Shane garland
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No comment, I haven’t read article yet!