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Qantas walks away from SIA deal
Qantas CEO Geoff Dixon has conceded that any possible merger with Singapore Airlines was probably now off the agenda.
With the recently announced major cost cutting exercise underay including possible outsourcing of maintenance contracts, the expansion of Jetstar to international services and Aus$20 billion of aircraft acquisition on the way, Dixon asserted that Qantas probably had enough on its plate right now.
“In the next six months, those three issues alone are just monumental for the future of Qantas, they really are,” Dixon said.
“If we start Jetstar International, it won’t be just some little add-on to anything,” he said. “It will be a full-blooded and fully operational airline; it will have no constraints on it.”
On the subject of the mooted SIA alliance, Dixon stated that he felt the time for a merger had just passed, although he still believes that Qantas should pursue a potential airline partner.
“We believe that because we are the end of the line carrier it would be best if we get a tie-up, whether it’s an equity tie-up or a very close relationship. And I just think it will happen,” he said.
Phil Davies
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