Thanks Mikalee.Agree with your comments if AQZ is wet leasing...

Thanks Mikalee.

Agree with your comments if AQZ is wet leasing aircraft to both Qantas and Virgin. However it’s a different story if AQZ is operating flights in their own right with a Virgin code share.

While no expert on competition law, I don’t think the ACCC application wouldn’t have been required for a simple wet lease deal with Virgin. This suggests that AQZ may be seeking to play a more substantive role that wet lease provider to Virgin.

If AQZ can achieve a simple wet lease deal with Virgin, this would reduce the financial risk to AQZ (except for creditor risk), so would be preferable from my perspective.

Having reread the AQZ Qantas announcement. It appears AQZ is taking the risk on just how much capacity Qantas will use, with Qantas having the ability to turn aircraft leases on and off at their discretion. I assume they will be paying for this flexibility.