Qantas is considering a radical restructure that could boost returns and shore up the airline against further takeover attempts, the Australian Financial Review said Wednesday.Analysts said any restructure, which likely stem from plans outlined by the failed bidding group, which was led by Macquarie Bank Ltd. and buyout group TPG Inc., would make sense, particularly at this stage of the cycle.
Without citing sources, the Australian Financial Review said Qantas may create a new business to house its fleet of more than 200 planes.
The carrier is looking at a number of options, including seeking co-investment from leasing firms or selling a stake in the business through a separate listing, the newspaper said.
The airline’s board will also consider a proposal to spin off the its freight unit, Frequent Flyer loyalty program and plans to hand back a mooted A$2 billion in cash to shareholders at a meeting scheduled for July 18.
The newspaper said the proposal could be approved by the airline’s board at a meeting next month, which would allow Qantas chief executive Geoff Dixon to detail plans to investors Aug. 16, when it releases its earnings report.
Qantas won the accolade for Australasia’s Leading Airline at the World Travel Awards in 2006